Explanation

This risk was not identified. Based on the data in Item 20 for the past three years, the system has experienced very low turnover. The combined number of terminations, non-renewals, and cessations for other reasons is minimal relative to the total number of operating franchises. This suggests a high level of stability within the franchisee base. High turnover can often signal systemic problems, so its absence here is a positive indicator for a prospective franchisee.

Potential Mitigations

• It is still advisable to contact a diverse group of current and former franchisees listed in Item 20 to discuss their experiences and satisfaction with the system.
• Ask your business advisor to help you analyze the three-year trend data in Item 20 for any subtle changes.
• During franchisee interviews, inquire about the level of support provided by the franchisor, which can influence franchisee success and longevity.

Explanation

This risk was not identified. A Sub Above, LLC (ASA) and its predecessors have been franchising since 1987 and the original restaurant concept dates back to 1956. The system is well-established, with thousands of operating units. An unproven system would present higher risks, including the lack of an established brand, underdeveloped support systems, and a business model without a long track record of success. ASA does not present these specific risks.

Potential Mitigations

• When evaluating any franchise, it is beneficial to review the business experience of its key executives in Item 2 with a business advisor.
• An accountant can help you assess the financial stability of the franchisor, which is a key indicator of a proven system.
• Legal counsel should review the entire FDD package for completeness and consistency, which is often a sign of a mature franchisor.

Explanation

This risk was not identified. The business model, focused on submarine sandwiches, has demonstrated long-term consumer demand and sustainability since 1956. A fad business, based on a fleeting trend, poses a significant risk because franchisee obligations under the franchise agreement continue even after public interest wanes. This established concept does not appear to carry the risk of being a short-lived trend.

Potential Mitigations

• When evaluating any franchise opportunity, it is prudent to research the long-term market trends for its products or services with a business advisor.
• Assess the franchisor's commitment to innovation and brand evolution to ensure it can adapt to changing consumer tastes.
• Your financial advisor can help you analyze the business model's resilience across different economic cycles.

Explanation

This risk was not identified. Item 2 of the FDD lists the executive team of A Sub Above, LLC (ASA) and its parent, JMFS. The key personnel generally have extensive and long-term experience with the Jersey Mike's brand and in the restaurant industry. Inexperienced management can be a significant risk, often leading to poor strategic decisions and inadequate franchisee support. The extensive experience of the management team appears to be a strength for this franchise system.

Potential Mitigations

• It is always a good practice to review the backgrounds of the key executives listed in Item 2 with your business advisor.
• When speaking with current franchisees, you should inquire about their perception of the management team's competence and support.
• For any new executives, such as the CEO appointed in April 2025, researching their prior track record is a recommended diligence step.

Explanation

This risk was not identified. The FDD provides information about the franchisor, A Sub Above, LLC (ASA), and its parent companies, including Jersey Mike's Franchise Systems, LLC and the ultimate parent, affiliates of Blackstone Inc. Audited financial statements for both ASA and its parent, JMFS, are included as exhibits. A failure to disclose a parent company or provide its required financials when it guarantees the franchisor's obligations can obscure the true financial health and backing of the system.

Potential Mitigations

• Your accountant should always review the financial statements of both the franchisor and any parent company that provides a guarantee or is critical to the system.
• It is wise to have your attorney review Item 1 to understand the complete corporate structure and identify all relevant entities.
• Always verify that any required guarantees from a parent company are included as an exhibit to the FDD.

Explanation

This risk was not identified. Item 1 discloses that Jersey Mike's Franchise Systems, LLC (JMFS) was the predecessor to the current franchisor, A Sub Above, LLC (ASA), following a 2019 securitization transaction. The FDD appears to provide the required historical information, including litigation involving the predecessor in Item 3. Incomplete disclosure about a predecessor's history could hide past issues like high failure rates or significant litigation, preventing you from making a fully informed decision.

Potential Mitigations

• A franchise attorney should review Item 1 to ensure the predecessor's history and relationship to the current franchisor are clearly explained.
• It is prudent to ask long-tenured franchisees about their experiences under any predecessor entity.
• Your accountant can review any available financial data from the predecessor period to look for concerning trends.

Explanation

Item 3 discloses one lawsuit brought by the State of Washington concerning 'no-poach' provisions in legacy franchise agreements, which was settled. While any litigation is a concern, this FDD does not disclose a pattern of lawsuits brought by franchisees alleging fraud, misrepresentation, or other deceptive practices by the franchisor. A significant pattern of such litigation could indicate systemic problems with the franchisor's business practices and would be a major red flag.

Potential Mitigations

• Your attorney should carefully review the nature and outcome of any litigation disclosed in Item 3.
• In your discussions with current and former franchisees, it is useful to ask if they are aware of any other legal disputes with the franchisor.
• A business advisor can help you research online sources and news archives for any additional information about legal conflicts.