Jack In The Box
Jack in the Box offers quick-service restaurants serving hamburgers, sandwiches, fries, tacos, and more. Known for its value and variety, it franchises both built and new locations, requiring significant investment.
About Jack In The Box
Jack in the Box, Inc. is an American fast food restaurant chain founded on February 21, 1951, by Robert O. Peterson in San Diego, California, where it is headquartered. The chain has over 2,200 locations, primarily serving the West Coast of the United States. Restaurants are also found in large urban areas outside the West Coast, as well as two in Guam. The company also formerly operated the Qdoba Mexican Grill chain until Apollo Global Management bought the chain in December 2017.
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Jack In The Box franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment for opening one Jack in the Box restaurant varies. According to [p.37], the costs include a development fee of $50,000 and other costs that range from 75% to 85% of the total development cost (excluding the Initial Franchise Fee). For existing franchisees developing two restaurants, this initial investment is $20,000 plus additional variable costs. The exact total cannot be specified without knowing all specific costs involved.
What is the initial franchise fee?
The Initial Franchise Fee typically amounts to $50,000 for each franchised restaurant, plus applicable taxes and fees. For nontraditional locations, it is $25,000 per unit with similar additional charges. This fee is fully earned upon receipt and is nonrefundable [p.22]. However, due to a fee deferral condition imposed by the Commissioner in California, initial fees from California franchisees are deferred until all pre-opening obligations are completed and the business is open for business [p.531-533].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 20% of the Marketing Fees collected from the market where the franchise operates [p.53]. There is no specific mention of an ongoing advertising fee, but it's noted that franchisees must comply with the Company’s advertising standards and use only authorized materials approved in writing by the Company [p.290].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or present the site for development to another franchisee [p.398]. However, the franchisor (Different Rules, LLC) will continue to be obligated to comply with certain conditions related to this transfer [p.398].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement either with or without cause, effective upon written notice to the franchisee [p.502]. This includes automatic termination if the franchisee ceases to be a Jack in the Box franchisee.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
This isn't specified in the excerpts. The provided FDD does not guarantee an exclusive territory; however, it mentions that the company may reserve certain rights, including granting franchises to third parties for nontraditional venues or other locations specifically disclosed in the Multi-Unit Development Agreement [p.65].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training to the franchise operator and a manager for the new restaurant, which is proficiency-based rather than time-based [p.61]. This training includes the Company's Certified Franchise Restaurant Manager Training Program [p.354], and ongoing training may be required from time to time as directed by the company [p.354]. Additionally, the franchisor must provide training for the franchise operator regardless of whether a new site is developed or an existing restaurant is purchased [p.52]. Ongoing supervision and additional training are also mandated for the Certified Restaurant Manager [p.69], with travel and other expenses covered by the franchisee if further training is needed [p.354].
How many franchised outlets are there, and how many have closed or been terminated?
As of September 29, 2024, there were 2,040 franchised Jack in the Box restaurants. The excerpts do not specify the exact number of franchised outlets that have closed or been terminated; however, they provide details on exclusions from the total count for specific years [p.82].
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of an existing outlet if requested by a prospective franchisee [p.81]. Additionally, the franchisor may supplement the information provided in Item 19 with possible performance at a particular location or under specific circumstances [p.81]. However, except for the information in Item 19, the franchisor does not make any representations about future financial performance or past financial performance of company-owned or franchised outlets [p.87].
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the food and beverage products from the Franchised Restaurant within the boundaries designated by the company. You must purchase and use in your restaurant only those items approved by the company, including food, packaging, smallwares, food handling equipment, chemicals, and uniforms, which typically need to be bought from suppliers approved or designated by the company [p.42]. Additionally, you may have to buy certain computer software, peripheral equipment, and technology services directly from the franchisor [p.42], and there might be restrictions on operating a similar business during the term of the franchise [p.4].