What waiver must the transferee provide to the Franchisor when transferring a Jersey Mikes development agreement?

According to Jersey Mikes's 2025 Franchise Disclosure Document, a transferee must provide the Franchisor with a waiver and release with respect to liability for any financial data, earnings claims, representations, and other information the Developer or its representatives provided to the transferee. This requirement is one of several conditions Jersey Mikes may impose for consenting to the transfer of a development agreement.

This waiver protects Jersey Mikes from potential legal claims arising from information shared between the developer (the seller) and the transferee (the buyer) during the transfer process. Essentially, Jersey Mikes does not want to be held responsible if the transferee relies on financial projections or other statements made by the developer that turn out to be inaccurate.

For a prospective transferee, this means they need to conduct their own independent due diligence and not solely rely on the information provided by the current developer. It is advisable to consult with financial and legal advisors to assess the opportunity thoroughly. By signing the waiver, the transferee acknowledges they are responsible for verifying the accuracy of the information they receive and are assuming the risk of any discrepancies or misrepresentations.