Are you interested in learning exactly how much a Jack in the Box Franchise makes per year?
At Jack in the Box, this is one of the most common questions we receive from investors, capital management groups, multi-unit franchise, private equity groups, hospitality companies and other potential franchisees.
In this article, we’ll take a look at how much money the average Jack in the Box Franchise earns.
How Much Does a Jack in the Box Franchise Cost?
The estimated initial investment for a Jack in the Box Franchise is $1,697,000 - $2,694,600 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:
One-time initial franchise fee, up to $50k
Building improvements, up to $785k
Initial inventory, up to $20k
Three months of operating funds
These initial investment figures are based on Company-developed restaurant costs to open MK9 and MK10 prototypical buildings in fiscal years 2017 to 2019.
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.
Does Jack in the Box Require Royalty Fees?
Like most franchises, you’ll notice Jack in the Box has ongoing royalty fees. Our royalties at Jack in the Box are:
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.
How Much Does a Jack in the Box Franchise Make?
The average unit volume (AUV) of Jack in the Box is $1.8MM as outlined in Item 19 of our Franchise Disclosure Document.
This number comes from Table 3 and includes historical gross sales at franchised and company operated restaurants in the continental USA for the 12-month period between September 30, 2020 and September 30, 2021.
The term “gross sales” means all revenue from the sale of all products and services including delivery and catering services as well as from vending machines and similar sources of revenue.
It also includes other income of every kind and nature related to the Restaurant including proceeds from stored value gift cards when redeemed but not when purchased, business interruption insurance, and revenue from off-site events. Certain amounts are excluded from Gross Sales.
The gross sales for each restaurant will depend on a wide range of factors. However, the AUV from Item 19 gives you an idea of what to expect.
What Are the Requirements to Franchise with Jack in the Box?
Due to the cost of opening a restaurant with Jack in the Box, we have three minimum financial requirements all our potential franchisees must meet.
Minimum Liquidity: $500,000
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:
Local Banks & Credit Unions
Stocks & Bonds
These are just a few of the options you may like to consider to meet our financial requirements.
In addition to the financial requirements above, we also require that potential franchisees have 5+ years in restaurant operation experience or commit to bringing on someone to your team with that experience.
Check Out These Additional Resources
We hope this article gave you a better understanding of how much a Jack in the Box Franchise makes.
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: