As part of our aggressive franchise growth strategy, Jack in the Box is sharing an incentive program with multi-unit franchisees that offers significant financial benefits to those who enter into a minimum three-unit development agreement.
Here are the need-to-know facts about the Jack in the Box ‘s advantageous franchisee incentive program:
Discounted Franchise Royalty Fees
The financial incentives of our program focus on discounted royalty fees for new franchisees who maintain development compliance and sign at least three franchise agreements by March 2023. For the first five years of the unit being open, Jack in the Box will offer discounted royalty fees for new franchisees starting at…
1% the first year
2% the second
3% the third year
4% the fourth year
5% for the remainder of the agreement starting in the fifth year
With an average unit volume topping $1.8 million, the discounted royalty fees can result in savings of up to $180,000 in the first five years of operation.
Franchisee Support Bolstered
As additional qualified multi-unit franchisees join the Jack in the Box franchise system, this aggressive program in place will further showcase Jack in the Box’s commitment to supporting our franchise operators. As we work to move the needle with our burger franchise opportunity and introduce Jack to new markets across the country, our goal is to ensure existing and new owners alike are supported in every aspect of their business. Extensive training in our 10-to-14-week training program sets our operators up for success as they become approved to operate a franchised restaurant.
The multi-unit franchise incentive program aligns with Jack in the Box’s recently reported promising growth from the first two quarters of its 2022 fiscal year, including a total of 30 franchise agreements representing 106 future restaurants. Five new units opened in Q2 of this fiscal year, adding to the more than 2,100 restaurants across 21 states and Guam. Beyond sustaining steady quarter to quarter franchise expansion, our burger brand has demonstrated remarkable resiliency in store performance, with revenue increases of 19.8% on a two-year-over-year basis, furthering the appeal of our multi-unit franchise opportunity.