Can Jersey Mikes unilaterally modify the Franchise Agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| p. Your death or disability | Section 20 | Your heirs, beneficiaries, devisees or legal representative can apply to Company to continue operation of the Franchised Restaurant or sell or otherwise transfer interest in the Franchised Restaurant following death or incapacity of any person owning 50% or more interest in Franchisee. If they fail t o meet th ese conditions, the Franch ise Agreement will terminate and Company will have the option to buy the Franchised Restaurant. |
| q. Non-competition covenants during the term of the franchise | Section 16.3 | You must not divert or attempt to divert any business or customer to a competitor, or perform any act which may harm the goodwill associated with the marks and the System; or own or otherwise have any interest in any business (including a business you currently operate) specializing in the sa le of submarine-type sandwiches or prepared food products the same as or similar to any product or service provided through the System. |
| r. Non-competition covenants after the franchise is terminated or expires | Section 16.4 | You must not own, maintain, engage in, consult with or have any interest in any business specializing in the sale of submarine-type sandwiches or prepared food products the same as or similar to any other product or service provided through the System for 2 years after the Franchise Agreement is terminated within the Metropolitan Statistical Area, as defined by the United States Census Bureau, in which the Franchised Restaurant is located or within a 10-mile radius of the Franchised Restaurant or within a 10-mile radius of any other business using the System. |
| s. Modification of the agreement | Sections 9, 22 and 25 | The Franchise Agreement can be modified only by written agreement between Company and you. Company can modify or change the Systemthrough changes in the Confidential Operations Manual. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–64)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the Franchise Agreement can only be modified through a written agreement between Jersey Mikes and the franchisee. This means that Jersey Mikes cannot unilaterally change the terms of the agreement without the franchisee's consent. However, Jersey Mikes retains the right to modify or change the System through changes in the Confidential Operations Manual.
This distinction is important for prospective franchisees. While the core Franchise Agreement is protected from unilateral changes, Jersey Mikes can still evolve its operating procedures and standards through updates to the Confidential Operations Manual. Franchisees are obligated to adhere to these changes as part of the franchise agreement.
This is a fairly standard practice in franchising. Franchisors need the flexibility to adapt their systems to changing market conditions and consumer preferences. The Operations Manual is the typical mechanism for implementing these changes. Franchisees should carefully review the sections of the Franchise Agreement that discuss the Operations Manual and understand the scope of changes that Jersey Mikes can make.
Therefore, while the Franchise Agreement itself requires mutual written consent for modifications, Jersey Mikes retains the ability to evolve the business system through changes to the Operations Manual. A prospective franchisee should understand the implications of this and how it might affect their business operations over time.