How Much Does It Cost to Buy a Franchise?(2026 Guide)

By Dustin Thompson, Franchise Marketing & Development, Jack in the Box
Last updated: June 19, 2026

This is one of the most common questions I get, from first-time buyers and seasoned multi-unit investors alike. The honest answer is that it varies by brand, but the way you find the real number is the same every time. Let me show you where to look and what each piece of the cost actually means.

Key Takeaways

• The fastest way to find a franchise's cost is Item 7 of its Franchise Disclosure Document, the estimated initial investment.
• For a prototypical Jack in the Box restaurant, that range is $1,909,500 to $4,041,500 per the FDD dated March 13, 2026, excluding land and financing.
• The initial franchise fee is $50,000 per traditional restaurant, due when you sign the franchise agreement.
• Ongoing fees at Jack in the Box are a 5% royalty and a 5% marketing fee, both on gross sales and paid monthly.
• You do not need all of the investment in cash. Most franchisees finance part of it through SBA loans, commercial loans, partners, or retirement rollovers.
• Incentives can lower the cost, including a reduced royalty in select markets, a veterans fee reduction, and an interest-free development loan for qualified developers.

How much does it cost to buy a franchise?

The number you want is the estimated initial investment, and you find it in Item 7 of the franchise disclosure document. It is presented as a low-to-high range and includes the franchise fee, build-out, equipment, inventory, training, and working capital. For a prototypical Jack in the Box restaurant, that range is $1,909,500 to $4,041,500. Here is exactly what makes up that range.

Land and financing costs are not included in that total, which is standard for Item 7 disclosures.

Where do you find a franchise's cost?

Item 7 of the FDD, the estimated initial investment, is the single best source. Items 5 and 6 list the fees you pay to the franchisor, and Item 8 describes suppliers you must use. The Federal Trade Commission requires the franchisor to give you the FDD before any agreement is signed. If you have never read one, our guide to the franchise disclosure document breaks down all 23 items.

What is the initial franchise fee?

Under Item 5, you will find the initial franchise fee, which is essentially a license to operate the business. It buys you access to the brand, the systems, real estate support, and training. At Jack in the Box, the initial franchise fee is $50,000 per traditional restaurant, due when you sign your franchise agreement, which is typically a 20-year contract.

If you sign a multi-unit development agreement, the fee works like this: $50,000 for the first restaurant, plus a $10,000 deposit for each additional restaurant. The remaining $40,000 per additional restaurant is due when you sign each individual franchise agreement.

What are the ongoing royalties?

Once you are open, you pay ongoing fees that fund the brand, systems, and support you rely on. At Jack in the Box, that is a 5% royalty of gross sales and a 5% marketing fee of gross sales, both paid monthly. These are gross-sales fees, not a share of profit.

How do you finance franchise costs?

You do not need the full investment in cash. Most franchisees use some financing. Common routes include:

• SBA loans, partially guaranteed through the Small Business Administration to reduce lender risk.
• Commercial bank loans, which usually require good credit and a detailed business plan.
• 401(k) rollovers from a previous or current employer's plan.
• Business partners, to pool capital.
• Stocks and bonds, sold or borrowed against for liquidity.
• Friends and family, which can work but should be handled carefully.

Each option carries its own risk, so talk to a financial advisor about what fits you. I work in marketing and development, not financial advising, so I keep that line clear.

Are there incentives that reduce the cost?

Yes, and they are worth knowing before you sign:

• Select Market Incentive: a reduced royalty of 2% of gross sales for the first five years in qualifying markets.
• Development Incentive: a $150,000 interest-free loan toward development costs for qualified developers who commit to at least three restaurants, repaid by crediting royalties.
• Veterans Program (VetFran): a 25% reduction on the initial franchise fee for the first restaurant, bringing it to $37,500.

These are offered at the company's discretion with specific requirements, all detailed in the FDD. For the full path from inquiry to opening, see how to buy a fast-food franchise, and for the cash side, our liquidity requirement guide.

Frequently Asked Questions

How much does it cost to buy a Jack in the Box franchise?

The estimated initial investment for a prototypical restaurant is $1,909,500 to $4,041,500 per the 2026 FDD, excluding land and financing.

What is the Jack in the Box franchise fee?

$50,000 per traditional restaurant, due at signing of the franchise agreement.

What are the ongoing fees?

A 5% royalty and a 5% marketing fee, both on gross sales and paid monthly.

Do I need all the money in cash?

No. Most franchisees finance part of the investment through SBA loans, commercial loans, partners, or retirement rollovers.

Where do I find a franchise's total cost?

In Item 7 of the franchise disclosure document, supported by the fee details in Items 5 and 6.

Want help running your numbers?

If you want to talk through investment, financing, and incentives for a specific market, reach out to our franchise team.

About the author: Dustin Thompson works in Franchise Marketing & Development at Jack in the Box, where he helps prospective franchisees understand the real costs of ownership. Learn more on his author page.