Under the Jersey Mikes Franchise Agreement, can the company operate or enfranchise a Jersey Mikes restaurant within my Designated Area if I am not in default?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement, you are granted the right to operate a JERSEY MIKE'S Restaurant at a specific location ("Designated Area") described in the Franchise Agreement. Company and its affiliates will not, as long as the Franchise Agreement is in effect and you are not in default, enfranchise or operate a Company-owned or franchised JERSEY MIKE'S Restaurant, within your Designated Area as assigned in the Franchise Agreement, with the following exception: Company reserves the right to place company-owned or franchised Restaurants at "non-traditional venues," such as a irports, casinos, arenas, hospitals, hotels, malls, military installations, national parks, schools, stadiums and theme parks, within your Designated Area. Company may also acquire or be sold to a competing franchise system, which may or may not include restaurants in your Designated Area.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that Company owns, or from other channels of distribution or competitive brands that Company controls.
Source: Item 12 — TERRITORY (FDD pages 51–53)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, under the Franchise Agreement, Jersey Mikes and its affiliates will not enfranchise or operate a Company-owned or franchised Jersey Mikes Restaurant within your Designated Area as long as the Franchise Agreement is in effect and you are not in default. This means that, generally, Jersey Mikes will not open another franchise or company-owned store within the area specified in your agreement as long as you are meeting your obligations under the agreement. However, this protection is not absolute.
Jersey Mikes retains the right to place company-owned or franchised Restaurants at "non-traditional venues," such as airports, casinos, arenas, hospitals, hotels, malls, military installations, national parks, schools, stadiums and theme parks, within your Designated Area. Also, Jersey Mikes may acquire or be sold to a competing franchise system, which may or may not include restaurants in your Designated Area. This means that even if you are in compliance with your agreement, a Jersey Mikes could still open within your designated area under certain circumstances.
It is also important to note that you will not receive an exclusive territory. You may face competition from other franchisees, from outlets that Jersey Mikes owns, or from other channels of distribution or competitive brands that Jersey Mikes controls. This highlights the importance of carefully evaluating the specific location and market conditions before investing in a Jersey Mikes franchise.