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Is Jack in the Box Opening in Chicago?

Jack 2/23/24 9:16 AM

Jack in the Box Franchise Burger Business

6:05

Are you wondering if Jack in the Box is going to open locations in the city of Chicago?

At Jack in the Box, this is one of the most popular questions we receive on a regular basis.

In this article, we’ll go over why Jack in the Box is targeting Chicago and how you can get involved.

Jack in the Box Makes Triumphant Return to Chicago

Jack in the Box, a leading franchisor in the quick-service restaurant industry, today announced its highly anticipated return to the Chicagoland market. This accelerated development plan includes eight company-operated units and as part of the brand’s strategic market plan, Jack in the Box has identified more than 125 potential trade area opportunities for future corporate and franchise development in the area.

Source: Business Wire - July 2nd, 2024

Does Jack in the Box Have Locations in Illinois?

Yes! Jack in the Box currently has locations throughout the state of Illinois in the following cities:

Alton
Collinsville
Glen Carbon
Granite City
Litchfield
O’Fallon
Swansea
Troy
Wood River

However, Jack in the Box does not have any locations in Chicago. We are actively looking for new franchisees to bring our craveable 24/7 menu to Chicagoland.

Our franchise development team has identified 125 new trade area market points in Cook County along with another 125 in the surrounding counties that make up the Chicago Designated Market Area (DMA).

This includes areas in Indiana and Michigan where the Chicagoland DMA spreads around Lake Michigan.

Reasons to Invest in a Jack in the Box Franchise

At Jack in the Box, we’ve noticed there are many different reasons our franchisees decide to invest in our restaurants. Here are just a few of the most popular reasons:

QSR Industry: Fast-Food or Quick-Service Restaurants (QSRs) represent one of the most well-established industries in the world. Especially in the USA.
Average Unit Volume: The average unit volume (AUV) of Jack in the Box is $1.8MM as outlined in Item 19 of our Franchise Disclosure Document.
Menu Variety & Diversity: Our 24/7 menu with five dayparts will ensure there’s something on the menu for everyone regardless of what they’re in the mood for.
Drive-Thru Convenience: Roughly 90% of our 500M annual guests choose drive-thru or take-out because of their need for speed and convenience.
Mobile Ordering App: The Jack in the Box App streamlines the food delivery experience and builds loyalty with our rewards program.
Training & Support: We offer a comprehensive training program along with on-going support from our Restaurant Support Center in San Diego, CA.
Franchise Incentives: To promote growth in key markets, Jack in the Box offers an incentive to multi-unit franchisees interested in developing three or more stores.

Plus, we work with our franchisees every step of the way to help them get their restaurants up and running.

Why Jack in the Box in Chicago?

At this point, you may be wondering what makes the city of Chicago a good fit for Jack in the Box.

While we can’t guarantee the success of any of our restaurants, our franchise development team has noticed a few factors that make Chicago a prime location for Jack in the Box:

Centralized Location: Strategically located near Indianapolis, Louisville, and Columbus.
Economic Drivers: Economy driven by manufacturing, logistics, and healthcare.
Growth & Development: Chicago has room for growth in emerging and existing markets.
24-Hour Workforce: Solid workforce within manufacturing, industrial, and logistics fields.
Demographics: Market fits the preferred Jack in the Box demographic profile.
Real Estate: Whitespace availability of real estate throughout the city.

These are just a few of the reasons Chicago may be a good place to invest in a burger franchise.

Requirements to Open a Jack in the Box Franchise

If you’re interested in bringing Jack in the Box to the city of Chicago, you’ll need to meet the following business and financial requirements.

Our ideal candidate is someone with…

Strong Business Acumen
Restaurant Experience (Preferred Not Required)
Passion for Jack in the Box
Ability to Meet Financial Requirements
Commitment to Follow Brand Guidelines & Standards
An Entrepreneurial Spirit

All of our potential franchisees must meet the following financial requirements…

Minimum Liquidity: $500,000
Minimum Net Worth: $1.5MM
Franchise Fee: $50k per Location

As a franchisee, you’ll also be responsible for paying the ongoing royalty fees below…

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 $1,810,600 - $4,207,500 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.