Jack in the Box Franchise FAQ: Common Questions & Answers

Investment Frequently Asked Questions

• How Much Does a Jack in the Box Franchise Cost?

  The estimated initial investment for a Jack in the Box Franchise is $1,909,500 to $4,041,500 excluding land, financing, and certain other costs. We provide a breakdown of this number in our Item 7 found in our Franchise Disclosure Document. Click here to learn more.

• What Are the Financial Requirements to Open a Jack in the Box?

  Due to the cost of opening a restaurant with Jack in the Box, we have three minimum financial requirements all potential franchisees must meet.

  • Minimum Liquidity: $750,000

  • Minimum Net Worth: $1.5MM

  • Franchise Fee: $50k per Location

  If you’re unable to meet these requirements, there are many potential sources of liquidity that may be overlooked. For example:

  • Business Partners

  • Stocks & Bonds

  • Home Equity

  • 401k Rollovers

  These are just a few of the options you may like to consider in order to meet our financial requirements.

• What Are the Royalty Fees Associated with Jack in the Box?

  Like most franchises, you’ll notice Jack in the Box has ongoing royalty fees.

  • 5% Royalty of Gross Sales

  • 5% Marketing Fee of Gross Sales

  These royalties ensure you have the best possible resources to run your business and bring customers to your location.

• What Do I Get for My Franchise Fee and Royalties?

  • Use of the Jack in the Box® brand name, systems, logo, and store design.

  • A comprehensive JIB Management Training Program designed to prepare you for daily operation of your restaurant.

  • Site selection support.

  • Construction & design support. Conceptual floor plans and site plans are provided. These must be sealed by an approved architect before submitting them to local government entities.

  • Franchise development support and a step-by-step guide through the process of new-store layout, ordering of equipment, furniture, and fixtures.

  • Support and training assistance in pre-opening and opening.

  • Ongoing support from: JIB Franchise Business Consultants, the JIB Culinary & Innovation Team, and R&D. Plus, purchasing, distribution, and marketing support for local store.

• Do I Have to Pay a Franchise Fee Every Year?

  No, you’re only required to pay your initial franchise fee when you sign your franchise agreement. This is a one-time payment that gives you a license to own and operate your franchise business for an agreed upon number of years. The only time you’ll be required to pay this fee again, is at the end of your initial term if you decide to renew or extend the terms of your franchise agreement.

   

• How Much Does a Jack in the Box Make?

  Based upon Federal Trade Commission guidelines, we are precluded from providing earnings estimates or profit potential. We encourage prospective franchisees to conduct significant due diligence prior to committing to a new business venture. We provide names and phone numbers of existing franchisees in the Franchise Disclosure Document (FDD). A pro forma financial statement that shows the operating performance of our company owned locations is included in the FDD for your review. At the end of the day, you are in control of this question. Your willingness to adhere to our operating system and your dedication to customer service are the key factors in answering this question.

• Are Single and Multi-Unit Opportunities Available?

  We prefer multi-unit agreements, but there are circumstances in which we may consider smaller (one or two unit) agreements.

• Does Jack in the Box Offer Multi-Unit Franchise Incentives?

  Development Incentive Program:

  We offer an incentive to qualified developers. Under our current Development Incentive Program, if you sign a Development Agreement for a minimum of three (3) restaurants to be developed and opened under the development schedule during the time frames specified in the Development Agreement, and certain other requirements are met, you may be eligible for the following incentive, at our sole discretion:

  If you open the Restaurant on or before the required date in the development schedule, we will loan you $150,000 at 0% interest to be used solely for development costs associated with that restaurant. The loan will be repaid by crediting 100% of the royalty payments for that restaurant otherwise due until the loan is paid in full (i.e., payments will be made by crediting the appropriate portion of royalty payments toward the principal balance outstanding). If the particular restaurant is sold or permanently closed and the loan has not been fully repaid, the remaining principal balance is due in full.

  If you close a restaurant and then open a replacement restaurant, it will not be eligible for this incentive. The Company may discontinue or modify this Development Incentive Program at any time.

  Select Market Incentive Program:

  We offer an incentive to certain franchisees who have signed a Multi-Unit Development Agreement pursuant to which they have committed to open at least three (3) Restaurants in a ”Select Market.” For the purposes hereof, a “Select Market” is one in which food or other operating costs for franchisees are higher than average costs for other franchisees, due to supply chain conditions, as determined from time to time by us in our sole discretion. If we, in our sole discretion, determine that any Restaurants opened pursuant to such Multi-Unit Development Agreement qualify for this incentive, your Royalty for each qualifying Restaurant (which is currently 5% of Gross Sales) will be reduced to 2% of Gross Sales for the first five years after the subject qualifying Restaurant opens.

• Does Jack in the Box Offer Incentives for Veterans?

  We currently participate in the International Franchise Association’s Veterans Transition Franchise Initiative (“VetFran”) to provide franchise opportunities to qualifying veterans.

  Under the Veterans Program, we reduce the Initial Franchise Fee for the first new Restaurant by 25% or $12,500. Accordingly, the Initial Franchise Fee paid to us is $37,500.

• How Long Does the Entire Process Take to Become a Franchisee?

  At Jack in the Box, we can go as fast as you are willing to go. The process to become a franchisee with Jack in the Box typically ranges from 90 - 120 days.

• Does Jack in the Box Provide Financing?

  We do not provide financing directly to our franchisees. However, we have established relationships with SBA lenders and other sources of financing.

• Am I Allowed to Operate with Business Partners?

  At Jack in the Box, we allow our franchisees to have business partners to help them meet our investment requirements.

• How Do I Begin the Franchise Application Process?

  To learn more about becoming a Jack in the Box franchisee, please complete this form and a member of our team will contact you!