Multi-Unit Franchising Conference
Las Vegas, NV

Frequently Asked Questions

• Am I Required to Have the Full Investment Amount in Cash?

  For most potential franchisees, the answer is no. While some franchisees choose to finance their store with cash, most choose to take advantage of low interest rates and borrow a vast majority of the investment from their bank or credit unions. There are many factors than can affect the amount of cash required by your bank such as credit history, specific bank requirements, debt-to-income ratio, SBA requirements, collateral, etc.

• Does Jack in the Box Offer Financing?

  Jack in the Box does not provide financing at this time, but we work with many banks that have experience lending to our franchisees. We can share this list with you. There are many additional options for financing available:

  • Term loans from brick and mortar banks

  • Partnerships

  • Business Line of Credit

  • SBA Loans

  • Equipment Financing

  • etc.

  With so many options for lending, it's important to understand what your options are and not rule out owning your own business until you've researched each option.

• What's the Total Investment Range for One Location?

  As outlined in our FDD, we estimate the initial investment in a Jack in the Box franchise is between $1,765,500- $2,761,600 per location.

• What Are the Jack in the Box Franchise Royalties?

  Like other franchises, Jack in the Box assesses a small number of ongoing fees. The revenue we generate from these fees helps us to offer you the best ongoing support possible. Examples include:

  • Royalty (excluding Games & Devices): 5% of gross sales

  • Marketing: 5% of gross sales

• Do I Have to Pay a Franchise Fee Every Year?

  No, you’re only required to pay your initial franchise fee when you sign your franchise agreement. This is a one-time payment that gives you a license to own and operate your franchise business for an agreed upon number of years. The only time you’ll be required to pay this fee again, is at the end of your initial term if you decide to renew or extend the terms of your franchise agreement.

• What's the Jack in the Box Franchise Fee?

  The Jack in the Box franchise fee is $50,000 per location.

• How Much Does it Cost to Open a Jack in the Box Franchise?

  We estimate the investment in a Jack in the Box franchise will cost between $1,765,500- $2,761,600. These figures include virtually everything it takes to start a new restaurant, including:

  • • One-time initial franchise fee, up to $50K

    • Building improvements, up to $785K

    • Initial inventory, up to $20K

    • Three months of operating funds

  We work with our franchisees every step of the way as they get their new restaurants up and running and provide them with guidance, training, and support to ensure they get the most for their investment. If you’re wondering how to start a Jack in the Box, all you need to do is work through our step-by-step process.

• Does Jack in the Box Offer Multi-Unit Incentives?

  Yes, Jack in the Box does offer an incentive for multi-unit franchisees who choose to sign up for three or more stores under our Development Incentive Program.

  To help incentivize growth in key markets, Jack in the Box offers qualifying multi-unit investors two different incentive options.

  Under the Development Incentive Program for qualified buyers, if you sign a Development Agreement for a minimum of three (3) restaurants to be developed and opened under the development schedule during the time frames specified in the Development Agreement, and certain other requirements are met, you may be eligible for one the following incentive options, at our sole discretion:

  • OPTION A: The Royalty (which is currently 5% of Gross Sales) will be reduced to: (i) 1% of Gross Sales for the first year; (ii) 2% of Gross Sales for the second year; (iii) 3% of Gross Sales for the third year; (iv) 4% of Gross Sales for the fourth year; and (v) 5% of Gross Sales for all subsequent years.

  • OPTION B: If you open the Restaurant on or before the required date in the development schedule, we will loan you $150,000 at 0% interest to be used solely for development costs associated with that restaurant. The loan will be repaid by crediting 100% of the royalty payments for that restaurant otherwise due until the loan is paid in full (i.e., payments will be made by crediting the appropriate portion of royalty payments toward the principal balance outstanding). If the particular restaurant is sold or permanently closed and the loan has not been fully repaid, the remaining principal balance is due in full.

  More details about this program can be found in our Franchise Disclosure Document.

• How Much Does a Jack in the Box Franchise Make?

  This is one of the most frequent questions we receive from those looking at opening a Jack in the Box franchise. As listed in our Item 19 of our FDD, the Jack in the Box AUV (Average Unit Volume) is $1,837,053.
  
  If you'd like a copy of our FDD to review the Item 19, please click here.