Are you trying to figure out how much the franchise fee is at Jack in the Box? If so, you’re not alone.
At Jack in the Box, this is a popular question we receive from both multi-unit operators and first-time franchisees.
In this article, we will go over everything you need to know about the franchise fee at Jack in the Box.
What Is a Franchise Fee?
A franchisee fee is essentially a license for you to own and operate a franchise business.
This is the cost of entry for access to benefits like the franchisor’s brand, existing customer base, business systems, real estate support, and ongoing training.
Franchising is a lot like having a driver’s license. It comes with many advantages. However, your license can be taken away if you don’t follow the rules.
Some reasons for termination of your franchise agreement include:
- Failure to pay fees.
- Selling unapproved products.
- Not meeting food safety standards.
You can learn more about renewal, termination, and transfer of your franchise agreement in Item 17 of our Franchise Disclosure Document (FDD).
Contact us to receive our latest FDD.
How Much Is the Franchise Fee at Jack in the Box?
At Jack in the Box, our initial franchise fee is $50,000 for each traditional franchised restaurant plus any tax or other fees due to the collection of your payment.
This initial franchise fee is due when you sign your franchise agreement which is typically a 20-year contract that allows you to operate as a franchisee.
If you sign a multi-unit development agreement with Jack in the Box, we grant you the right to construct an agreed-upon number of restaurants in a specified geographic area.
If you are a new franchisee to our system, you must pay us a non-refundable development fee when you sign your multi-unit development agreement.
The fee is calculated as follows:
- $50,000 for the first new restaurant.
- $10,000 deposit for each additional new restaurant.
Both payments are non-refundable, and the remainder of your franchise fee ($40,000 per additional new restaurant) is due when you sign your franchise agreement, which is typically within 90 days of opening for each of your locations.
What Are the Ongoing Royalties at Jack in the Box?
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.
What Do I Get for My Franchise Fee & Royalties?
Paying your initial franchise fee and ongoing royalties grants you access to a wide variety of assets and services that will help you run your restaurants.
Here are a few of the items you’ll receive:
- 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.
Paying your franchise fees and royalties will ensure you have the best possible resources to run your business and bring customers to your location.
Do I Have to Pay a Franchise Fee Every Year?
At Jack in the Box, 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.
Check Out These Additional Resources
We hope this article gave you a better understanding of how much the franchise fee is at Jack in the Box.
Our team works with our franchisees every step of the way 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.