How Much Does a Jack in the Box Franchise Cost?
Are you interested in learning how much a Jack in the Box Franchise costs? If so, you’re not alone.
Are you interested in learning how much a burger franchise costs? If so, you’re not alone.
At Jack in the Box, questions about costs, fees, and royalties are some of the most common we receive.
In this article, we will go over how much it costs to start a burger franchise.
One of the first costs you’ll have to pay in order to start a burger franchise is the initial franchise fee.
This fee is required for each restaurant you plan to build and it’s due when you sign the Franchise Agreement.
At Jack in the Box, our franchise fee is $50,000 per location plus any taxes or fees related to the collection or processing of your payment.
These fees are nonrefundable and will vary based on the brand of burger franchise you’re interested in.
Most burger franchises will have ongoing royalty fees all their franchisees must pay on a regular basis.
For example, Jack in the Box charges an ongoing 5% royalty and a 5% marketing royalty.
These royalties ensure you have the best possible resources to run your business and bring customers to your location.
When you pay these ongoing royalties and franchise fees, you might wonder, “Where does the money go and what do I get?”
Here are some of the things your payments to Jack in the Box get you:
You can learn more about where your fees and royalties go by asking your franchise business consultant.
The final number for your total burger franchise costs will vary based on a wide variety of factors.
One of the best ways to figure out how much money you’ll need is to research the estimated initial investment for each brand.
The estimated initial investment for a Jack in the Box Franchise is $1,910,500 - $4,032,100 excluding land, financing, and certain other costs. We provide a breakdown of this number in our Item 7 found in our Franchise Disclosure Document.
Your initial investment includes virtually everything it takes to start a new restaurant:
These initial investment figures are based on franchised and Company restaurant development costs to open MK12 prototypical buildings in fiscal years 2023 to 2024.
The cost of land will vary widely, depending upon size and location of the property and whether you purchase/own the land or enter into a lease arrangement.
You might be able to lower your overall burger franchise costs by asking if multi-unit franchise incentives are available.
Jack in the Box offers an incentive for multi-unit franchisees who choose to sign up for three or more stores under our Development Incentive Program.
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.
More details about this program can be found in our Franchise Disclosure Document.
We hope this article gave you a better understanding of how much a burger franchise costs.
At Jack in the Box, we work with our franchisees every step of the way in order to get their restaurants up and running.
Here are some additional online resources you may like to check out:
If you have any questions, please contact our franchise sales and support team.
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