Are you interested in learning more about the Jack in the Box franchise requirements?
At Jack in the Box, our potential franchisees must meet a variety of requirements to begin their journey to franchise ownership.
In this article, we will go over the financial, real estate, and preferred site criteria requirements we have at Jack in the Box.
Jack in the Box Financial Requirements
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: $1.0MM
- 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:
- Stocks & Bonds
- Home Equity
- 401k Rollovers
- Local Banks & Credit Unions
- Business Partners
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.
Jack in the Box Franchise Royalties
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 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.
Jack in the Box Site Requirements
When selecting a site for our latest prototype, Jack in the Box has a variety of land, demographic, and site characteristics we look for.
Preferred Site Criteria:
- Land Size: +25,000 Square Feet
- Building Size: 1,350 – 2,400 Square Feet
- Population: +10,000 (1 Mile)
- Employment: +3,000 (1 Mile)
- Household Income: $65,000 (Average)
- Traffic Counts: +25,000 (Daily)
Site Characteristics:
- Free-Standing / Out-Parcel Pads
- End Cap
- Ground Lease & Purchase
- Ingress / Egress
- Visibility & Signage
- Drive-Thru Required
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If you need help finding a location to build your Jack in the Box, our team can help you find the perfect spot with our real estate planning software.
Check Out These Additional Resources
We hope this article gave you a better understanding of the Jack in the Box franchise requirements.
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.
Dustin Thompson : 5/20/22 5:32 PM