Upon termination or expiration of the Jersey Mikes agreement, what must the franchisee immediately cease?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration, this Agreement and all rights granted hereunder to Franchisee shall forthwith terminate, and:
- 18.1 Franchisee shall immediately cease to operate the Franchised Restaurant under this Agreement (unless Franchisor directs Franchisee otherwise in connection with Franchisor's exercise of Franchisor's option to purchase pursuant to Section 18.11), and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor.
- 18.2 Upon demand by Franchisor, Franchisee shall assign to Franchisor Franchisee's interest in any lease then in effect for the Premises, or if Franchisee is the owner of the Premises, negotiate in good faith with Franchisor for a lease which permits Franchisor or its designee to occupy the premises, and Franchisee shall furnish Fr anchisor with evidence satisfactory to Franchisor of c ompliance with this obligation within thirty (30) days after termination or expiration of this Agreement.
- 18.3 Franchisee shall immediately and perm anently cease to use, b y advertising or in any manner whatsoever, any Confidential Information, the Marks, any Contact Identifiers (as defined in Section 18.6) or any O nline Presence.
In par ticular, Franchisee shall cease to use, withou t limitation, all signs, advertising materials, stationery, forms, and other articles which display the Marks associated with the System.
Franchisor shall have the right to deactivate Franchisee's POS System.
- 18.4 Franchisee shall take such action as may be necessary to assign to Franchisor or Franchisor's designee any assumed name rights or equivalent registration filed with state, city, or county authorities which c ontains the name "JERSEY MIKE'S" or any other service mark or tra demark of Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must immediately cease certain activities. Specifically, the franchisee must stop operating the Franchised Restaurant under the agreement, unless Jersey Mikes directs otherwise in connection with exercising its option to purchase the restaurant. The franchisee is also prohibited from representing themselves to the public as a current or former Jersey Mikes franchisee.
Additionally, the franchisee must immediately and permanently stop using any Confidential Information, Marks, Contact Identifiers, or any Online Presence associated with Jersey Mikes. This includes ceasing the use of all signs, advertising materials, stationery, forms, and other articles that display the Marks associated with the Jersey Mikes system. Jersey Mikes also has the right to deactivate the franchisee's POS system.
Furthermore, the franchisee is required to take necessary actions to assign to Jersey Mikes or its designee any assumed name rights or equivalent registration filed with state, city, or county authorities that contain the name "JERSEY MIKE'S" or any other service mark or trademark of Jersey Mikes. Compliance with this obligation must be demonstrated to Jersey Mikes within thirty (30) days after termination or expiration of the agreement. These post-termination obligations are typical in franchising to protect the brand's integrity and prevent confusion in the marketplace.