Jack in the Box vs Burger King: Which Franchise Is Best?

Are you interested in learning the differences between franchising with Jack in the Box vs Burger King?

At Jack in the Box, we understand you have a lot of choices to make 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 Burger King when it comes to franchising.

1) Available Markets

Finding an available market is one of the most important steps in your franchising journey.

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

• Burger King: +7,000 Locations
• Jack in the Box: +2,100 Locations

You’ll notice Burger King has nearly 5,000 more restaurants in the U.S. than Jack in the Box – leaving plenty of whitespace for franchise growth with Jack.

This means you have an opportunity to develop Jack in the Box locations 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 restaurants.

Burger King is expanding their brand nationally with franchising opportunities through multi-unit acquisitions and new restaurant development.

2) Investment Requirements

Before you begin the process of becoming a franchisee, you must meet certain investment requirements.

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

Jack in the Box Investment Requirements:

• Minimum Liquidity: $500,000
• Minimum Net Worth: $1,500,000
• Franchise Fee: $50,000 per Location

Burger King Investment Requirements:

• Minimum Liquidity: $500,000
• Minimum Net Worth: $1,000,000
• Franchise Fee: $50,000 per Location

Burger King also charges prospective franchisees a New Entity/Application Fee of $5,000 to help with the costs of processing your application.

Keep in mind, you’ll also be responsible for paying ongoing royalty fees as a franchisee with both brands.

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

Burger King charges an ongoing 4.5% royalty fee plus 4% of sales to their Advertising Fund.

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
• Home Equity

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

Currently, the Burger King franchising website doesn’t mention if they give franchisees the opportunity to operate with business partners.

4) Real Estate Ownership

Being able to own the real estate associated with your franchise is an important factor to consider when shopping for the best brand to partner with.

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.

Burger King does not explicitly mention if they allow their franchisees to own the real estate their restaurant is built on.

5) Menu Variety

Jack in the Box and Burger King offer similar menu items like burgers, fries, and shakes. However, most BK locations close around midnight.

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.

When it comes to variety, Jack in the Box is the clear winner by offering much more than the delicious burgers and fries we’re known for with items like:

• Tacos
• Egg Rolls
• Fajitas

These popular menu items are quickly developing a cult following of their own.

Check Out These Additional Resources

We hope this article gave you a better understanding of the advantages and disadvantages between Jack in the Box and Burger King.

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:

• How to Become a Burger Franchise Owner
• 10 Best Burger Franchises with Drive-Thru Lanes
• Which Burger Franchise Makes the Most Money?

If you have any questions or would like to get started, please submit this form to contact our franchising team.