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What Do I Get for My Franchise Fee & Royalties?

What Do I Get for My Franchise Fee & Royalties?

Are you trying to figure out exactly what you get when you pay your franchise fee and ongoing royalties?

As a Jack in the Box Franchisee, you’re responsible for paying a variety of ongoing royalty fees along with your initial franchise fee.

In this article, we’ll take a look at what you get for your franchise fee and royalties 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, business systems, training, support, and existing customer base.

Paying your franchise fee gives you a license to go into business for yourself, but not by yourself.

How Much is the Jack in the Box Initial Franchise Fee?

When you sign your Franchise Agreement, you must pay Jack in the Box an Initial Franchise Fee.

The Initial Franchise Fee at Jack in the Box is $50,000 for each franchised restaurant, plus any tax or other fee imposed upon the Company due to the collection of the Initial Franchise Fee.

If you’re interested in opening a nontraditional location (c-store, stadium, airport, etc), the Initial Franchise Fee is $25,000 for each unit, plus any taxes and fees imposed on the Company due to collection of the Initial Franchise Fee.

Please note, the Initial Franchise Fee is fully earned on the date it is received by the Company and is nonrefundable.

What Are the Ongoing Royalties at Jack in the Box?

Like most companies in the franchising industry, you’ll notice Jack in the Box has ongoing royalty fees.

Our ongoing royalties at Jack in the Box include:

  • 5% Royalty of Gross Sales
  • 5% Marketing Fee of Gross Sales

At Jack in the Box, both of the royalties mentioned above are payable monthly on the 15th day of the next month.

What Do I Get for My Franchise Fee and 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.

Check Out These Additional Resources

We hope this article gave you a better understanding of what you receive in exchange for your franchise fees and royalties.

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

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