Under a single-unit franchise agreement, when is the initial franchise fee for Jersey Mikes payable?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3 Franchisee shall pay to Franchisor the initial fee described on the Summar y Pages upon execution of the Agreement. Said fee shall be deemed fully earned and non-refundable upon execution of this Agreement as consideration for expenses incurred by Franchisor in furnishing assistance and services to Franchisee and for Franchisor's lost or deferred opportunity to franchise others, except as may be specifically provided in this Agreement or any Exhibit attached to this Agreement.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the initial franchise fee is due upon the execution of the Franchise Agreement. Specifically, the FDD states that the franchisee must pay the initial fee described on the Summary Pages when the agreement is executed.
Jersey Mike's considers this fee fully earned and non-refundable immediately upon execution of the agreement. This is because Jersey Mike's incurs expenses by providing assistance and services to the franchisee and loses the opportunity to franchise others.
This means a prospective Jersey Mike's franchisee should be prepared to pay the full initial franchise fee at the time of signing the agreement. It is important to understand that this fee is non-refundable, so careful consideration should be given before executing the agreement.