Jack in the Box vs Freddy's: Which Franchise Is Best?

Are you searching for the differences between franchising with Jack in the Box vs Freddy’s?

At Jack in the Box, we understand you have plenty of options to choose from when it comes to finding the best franchise opportunity for you.

In this article, we’ll take an in-depth look at five key differences between Jack in the Box and Freddy’s when it comes to franchising.

1) Available Markets

Identifying an available market for your restaurant is one of the most important steps in your franchising journey.

Let’s look at the number of current locations in the United States for both companies:

• Freddy’s: +400 Locations
• Jack in the Box: +2,100 Locations

When compared to the +14,000 McDonald’s locations in the United States, Freddy’s and Jack in the Box have a relatively low number of restaurants across the country.

At Jack in the Box, this means you have an opportunity to develop your restaurant in some of the most exciting markets in the country. Plus, a better chance at finding availability in your preferred location.

When you look at our map of available markets, you’ll see most of the cities and states outside of California, Texas, and Utah are open for new burger franchise restaurants.

Freddy’s has exclusive territories available across the United States. Market availability varies from state to state, and they currently do not have white space in Kansas.

2) Investment Requirements

Before you begin the formal process of becoming a franchisee at Freddy’s or Jack in the Box, you must meet certain investment requirements.

These requirements typically involve a minimum of liquid cash available and net worth along with a franchisee fee.

Freddy’s Investment Requirements:

• Minimum Liquidity: $400,000
• Minimum Net Worth: $1.0 Million
• Franchise Fee: $25,000 per Location

Jack in the Box Investment Requirements:

• Minimum Liquidity: $500,000
• Minimum Net Worth: $1.5 Million
• Franchise Fee: $50,000 per Location

Both of these burger franchises have similar financial requirements when it comes to liquidity, net worth, and franchise fee.

Keep in mind, you’ll also be responsible for paying royalty fees as a franchisee at either restaurant.

Jack in the Box charges an ongoing 5% royalty with a 5% ongoing marketing royalty.

Freddy’s charges an ongoing 4.5% royalty fee with an ad royalty fee of 1.5%.

3) Business Partners

If you’re unable to meet the financial requirements mentioned above, there are many potential sources of liquidity that may be overlooked. For example:

• Business Partners
• Stocks & Bonds
• 401k Rollovers

At Jack in the Box, we allow our franchisees to have business partners to help them meet our investment requirements.

Currently, the Freddy’s franchising website doesn’t mention if they give you the ability to operate with business partners.

4) Real Estate Ownership

Another important factor you should be aware of is the ability of the franchisee to own the real estate associated with their restaurant.

At Jack in the Box, our franchisees can purchase or lease the property where their restaurants are located. We even have an entire real estate and leasing team to help you find available real estate and assist with lease negotiations.

Freddy’s offers a similar option to their franchisees. You’ll have the ability to lease or buy the property outright. Plus, their real estate team offers help with site selection, facility planning, restaurant layout, and fixture & equipment ordering.

5) Menu Options & Availability

Freddy’s is a nostalgic fast-casual restaurant with cooked-to-order steakburgers, hot dogs, shoestring fries, and frozen custard from 10:30AM until they close around 11PM.

Jack in the Box offers a large and distinctive 24/7 menu with five dayparts to our customers. This means you can get anything on the menu at any time – day or night.

Our menu features much more than burgers and fries with our 24-hour breakfast menu and items like our famous tacos, egg rolls, and late-night Munchie Meals.

When it comes to menu variety and hours of operation between these two burger franchises, Jack in the Box is the clear winner.

Check Out These Additional Resources

We hope this article gave you a better understanding of the advantages and disadvantages between franchising with Jack in the Box and Freddy’s.

At Jack in the Box, we work 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:

• 5 Reasons to Buy a Burger Franchise
• How Much Does a Jack in the Box Franchise Cost?
• Burger Franchise vs Chicken Franchise: Everything You Need to Know

If you have any questions, please feel free to contact our franchise sales & support team.