Subject: Ownership Statement and Usage Reference Section: Introduction Policy Number: A.00.a Effective Date: 3/1/2012

This Jerry’s Subs & Pizza Operations Manual is the property of Jerry’s Subs and Pizza, Inc. During the period that the Franchise License Agreement is in full force and effect, this Operations Manual will be available to the unit online, via an access code. The sole purpose of this Operations Manual is to guide and assist the franchisee in the operation and management of his/her franchised Jerry’s Subs & Pizza unit. It is the responsibility of the franchisee to maintain this Manual in all respects, including proper care and material updates. Any unauthorized use of this Operations Manual or its contents may constitute a violation of the Franchise License Agreement.
This Operations Manual is divided into separate categories which have been lettered and titled. If there is a particular policy that needs to be found, locate it by referring to the Table Of Contents at the beginning of the Manual. The Table Of Contents groups policies and procedures under different headings subtitled with the policy name, policy section, policy number, number of pages, and policy effective date.


Subject: History of Jerry’s Section: IntroductionPolicy Number: A.01.a Effective Date: 3/1/2012

The story of Jerry’s Subs & Pizza begins in 1954 in Wheaton, Maryland, a suburb of Washington, D.C. The first Jerry’s, named after the son of the original owner, was a small sandwich shop with a reputation for great subs over-stuffed with fillings. This reputation made Jerry’s a popular food stop for the residents of Wheaton and the surrounding area. This popularity grew through the years.
The reason for this following was obvious: the Jerry’s product – an over-stuffed sub filled with quality food – was superior to its competitors. It was this belief in the Jerry’s submarine sandwich that gave the current Jerry’s ownership team the confidence and commitment to expand and franchise the business.
The national franchising operation came into effect in 1979 and soon the quality of all Jerry’s products (subs, pizzas and other items) and the care put into their creation and presentation became known throughout Washington, D.C. and the surrounding suburbs in Maryland and Virginia.
Today, Jerry’s Subs & Pizza stores are aggressively expanding into many parts of the country. The company has maintained its excellent reputation for product quality and value. By continuing to uphold belief in quality, value, and service Jerry’s hopes to become a nationally-known restaurant.


Subject: Jerry’s Management Philosophy Section: Introduction Policy Number: A.02.a Effective Date: 7/23/1987

Being the operator of a Jerry’s Subs & Pizza requires a degree of involvement by the operator that is often qualitatively distinct from endeavors that one may have previously experienced. Therefore, it is essential that each operator be familiar with the basic tenets of our overall business philosophy, and incorporate them into their management style.
I. BE KNOWLEDGEABLE – Read your Operations Manual carefully! Retain all of the information that it has to offer. Only by knowing all of this information inside and out will you be able to recall and utilize it effectively during the hustle and bustle of the business day.
II. BE SKILLED – Only by being able to perform each duty in the store extremely well yourself will you be able to properly instruct, train and evaluate others. Mere knowledge of procedures is not enough. You must incorporate the knowledge and develop the skills to a point where you can perform them in a manner which is second nature to you.
III.BE INVOLVED – You cannot effectively operate a store if you divorce yourself from daily production activities. 75% of your time should be spent on the production floor in direct supervision of employees and the business. Do not allow yourself to develop tunnel vision. Keep an overall perspective on the activities within the store at all times. Constantly look at what your employees are doing. Just because they appear to be busy does not assure that they are performing their duties correctly. Look specifically at what they are doing and give them corrective instructional feedback when appropriate. THIS IS A CONTINUING FUNCTION OF THE OPERATOR WHICH MUST NOT BE MINIMIZED!
IV. BE THOROUGH – The smallest things often make the biggest difference. Pay attention to details! Do not allow food to be over-cooked, products to be assembled improperly or sloppily, or customer areas to be kept less than spotless. It is imperative that all aspects of your store are monitored and maintained.
V. BE EVENHANDED – Treat your employees fairly. Give them positive feedback when they do a good job, and let them know that their conscientious efforts are appreciated. Do not let poor attitudes or irresponsible behavior go unchecked. Feedback from you, both positive and corrective, will go far in establishing a pleasant and efficient working environment.
VI. ESTABLISH PRIORITIES – Do things at appropriate times. For example, do not speak with sales people or perform administrative duties during peak hours (i.e., during lunch or dinner). Know what needs to be done, and establish an idea in your mind as to how your day should proceed. Remember that customer service is always top priority. The organized and well-planned operator will succeed.
In summary, running a Jerry’s Subs & Pizza is not a Monday through Friday, 9 to 5 job. Most of our stores do a majority of their business when everyone else is not at work, i.e. during lunch, Friday nights, and weekends. To establish and maintain consistency within your store, you cannot neglect these time periods. Call up and check with your store during times you are not there. Come back unexpectedly to see the condition of the operating procedures when you are not there. Most importantly, when you discover any problems or inconsistencies, do something about them.


Subject: Jerry’s Management Principles Section: Introduction Policy Number: A.03.a Effective Date: 3/1/2012

I. BASIC GOALS OF MANAGEMENT – The basic goals of management are to develop excellence and consistency with respect to The Customer’s Total Experience. This includes the best quality food, an emphasis on hospitality and friendliness, quick service and a properly clean environment.
Concern for quality should be reflected in all of the operation. It is particularly important in the food service industry to realize the unique nature of the final product, and to avoid the tendency to think of that product as simply a unit of production.
Every Customer should feel welcome, appreciated, and satisfied. The product must deliver quality, good taste and value. The staff must deliver courteous treatment, attentive service, and a pleasant environment. JERRY’S is a fast-food operation, and as such, speed and efficiency are important. Our standards are to take and complete customers orders quickly and accurately. Time will be measured from the point that the total key is hit on the register until the number is called at the pickup counter.The time for subs is 6 minutes and 10 minutes for pizzas
1. PRODUCTION AND SERVICE AREAS – It is important to realize that the production process at JERRY’S is carried out in an open kitchen. Production activities are therefore highly visible to the customers, and management must be constantly concerned with maintaining a clean and sanitary image.
2. CUSTOMER CONTACT AREAS – Customer contact areas include any area of the store to which customers have access (bathrooms, seating areas, condiment counters, etc.) These areas demand continuous monitoring and constant attention if they are to remain clean, sanitary, and in a generally suitable condition for customers.
II. COURTESY AND GENERAL ATTITUDE – Basic courtesy and a congenial attitude, both with respect to customers and employees, is the most important quality a manager must possess. The manager must be positive in his orientation towards solving problems within the store.
Horseplay, excessive joking, or foul language are not to be tolerated. It is important for the manager to maintain a professional atmosphere within the store, and to prevent minor problems or conflicts involving employees from becoming overblown. A good manager will attempt to deal with the real causes of a problem or situation instead of over reacting to the symptoms. It has been demonstrated that one of the most important factors in employee motivation and relations is management’s sensitivity to the employee’s feelings. Management techniques that incorporate an appropriate degree of concern for the individual employee’s needs will be more successful in achieving productivity among those employees. A pure power approach to management is not only ineffective, it is severely counterproductive.
Genuine concern for the customers needs and problems must be demonstrated at all times. When dealing with customers, it is important to remember that the use of non-threatening words alone is not enough. It is equally as important to maintain a good tone of voice, to be genuinely pleasant and sincere, and to establish and maintain eye contact. It never pays to argue or match wits with a customer.
III. CONSISTENCY OF DIRECTION – Inconsistency in management is a major cause of disorientation and disorganization among employees. Policies and patterns of behavior must be enforced and regulated by management in an even handed manner. If changes are made, management should attempt to inform employees of the change before they attempt to implement it. Several methods can be used to disseminate information among employees, including notices on the employee bulletin board, notes fastened to paychecks, and general or individual meetings.
IV. DISCIPLINE – The previously mentioned factors with respect to courtesy and good attitude are not inconsistent with general disciplinary principles. Rules must be obeyed and policies must be adhered to. It is important that employees not interpret courtesy or a temperate manner as being indicative of a lax approach to policy and procedural enforcement. A properly disciplined environment provides for both maximum productivity and maximum job satisfaction among employees.
V. INSTRUCTION AND FOLLOW-UP – The most common cause of poor job performances by employees is the lack of proper training. Proper training involves both verbal communication and demonstration. Follow-up is also a critical ingredient. If after explanation and demonstration the manager fails to check to see if the employee is following instructions properly, then the manager has not done his job properly. It must be recognized that some individuals need more attention than others, and it is the manager’s responsibility to determine which individuals are performing satisfactorily and which individuals need further instruction.
VI. MISSION STATEMENT – At Jerry’s Subs & Pizza Restaurants,
OUR MISSION is to make every customer
feel welcomed, appreciated and satisfied
by ensuring that each customer receives:
A copy of this Mission Statement must be posted in every store on or near the Employee Bulletin Board. The Mission Statement should be reviewed and thoroughly understood by every employee, because the handling of our customers is absolutely crucial to the success of our business.


Subject: Jerry’s Franchising Philosophy Section: Introduction Policy Number: A.04.a Effective Date: 3/1/2002

It is important for the success of each franchise unit that the nature of the franchise relationship be clearly understood. Both the franchisor and franchisee have important coordinated responsibilities to ensure the success of Jerry’s.
Franchisor Responsibilities vs. Franchisee Responsibilities
There are three areas of mutual obligation to help ensure profitability for both the franchisor and franchisee.
The first area is enhancing the brand name of Jerry’s Subs & Pizza. The franchisor’s vehicles for enhancing the brand name are chain expansion, monitoring and maintaining consistency within the chain, and administration of the Advertising Fund. The franchisee enhances the Jerry’s name by making each customers’ visit a positive experience. Additionally the franchisee helps to enhance the Jerry’s name by pursuing local store marketing activities in a consistent and responsible manner.
The second major area of mutual responsibility is in maximizing and utilizing the operating system. The franchisor constantly looks for ways to make the stores more profitable through modifications to the operating system including menu, equipment, procedures, policies, etc. As for the franchisee it is each operator’s responsibility to ensure that every aspect of the operating system is followed closely to ensure consistency and maximum profitability, both of which are essential to a successful franchise.
Thirdly, both the franchisor and franchisee have an obligation to maximizing the ongoing support received from the franchisor. The franchisor and its various representatives are a resource for each franchisee to use for problem solving in their units. The franchisee should take advantage of these resources for any operational, marketing, purchasing, or training needs they may have.
A last concept relating to the Jerry’s Subs & Pizza Franchising Philosophy is “ownership”. Both the franchisor and franchisee own different parts of the overall franchise system.
What the franchisor owns is the concept, trademarks, operating systems, recipes, etc. that make Jerry’s Subs & Pizza qualitatively distinct from other franchises. It is the right and duty of the franchisor to protect these valuable business assets. Alternately, each franchisee owns the physical assets of the business (equipment, leasehold improvements, etc.).
The franchisor licenses each franchisee to use the operating system in the same manner one is licensed to drive a car. By having a drivers license, one is permitted to use their vehicle on the road system. If the laws and regulations regarding the use of the roads are adhered to, then the benefits of having a license are realized. The same concept is true for a franchise license. If all of the provisions of the franchise license are met, then each franchisee benefits from the experience, time and effort that go into helping make each franchisee profitable.
Truly then, the franchisor and the franchisee are “partners in profitability”, although, each retains certain aspects of ownership. The beauty of this partnership is that each side benefits while working toward the mutual goals and responsibilities discussed earlier. These concepts are the key to a successful franchise relationship.