KBRA Assigns Preliminary Ratings to Jersey Mike's Funding, LLC, Series 2025-1 Senior Secured Notes

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to Jersey Mike's Funding, LLC, Series 2025-1 Class A-2 Notes, a whole business securitization (WBS). Jersey Mike's 2025-1 represents Jersey Mike’s Franchise Systems, LLC’s (Jersey Mike’s or the Company’s) fourth securitization following the establishment of the master trust in December 2019. In conjunction with the issuance of the Series 2025-1 Notes, KBRA anticipates affirming the ratings on the Issuer’s outstanding notes (the Existing Notes and, together with the Series 2025-1 Notes, the Notes). The ratings are consistent with the results of our cash flow analysis following the addition of the Series 2025-1 Notes.

Jersey Mike’s is a US-based national sandwich brand spread across 3,054 restaurants (including non-securitized assets) among 50 US states, Washington DC, and Canada as of March 30, 2025, of which 3,045 are included as collateral for the transaction. There are 9 locations in Canada not included in the securitization. The brand was established in 1956, and it serves hot and cold submarine sandwiches. The brand positions itself within the competitive space as offering high quality, freshly sliced meats, cheese, and produce through its “A Sub Above” branding. As of the last twelve-month period ended March 31, 2025, the system generated approximately $3.9 billion in systemwide sales (SWS).

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Methodologies

• ABS: Whole Business Securitization (WBS) ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1010344