What accounting basis is used to prepare the Jack In The Box financial statements?

According to the 2025 Jack In The Box Franchise Disclosure Document, the consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and follow the rules and regulations of the Securities and Exchange Commission (SEC). This means Jack In The Box adheres to a standardized framework for financial reporting, ensuring transparency and comparability.

For a prospective franchisee, this indicates that Jack In The Box's financial reporting is consistent and reliable, as it follows established accounting standards. This consistency is important for evaluating the financial health and performance of the company. The use of U.S. GAAP also facilitates easier comparison with other franchise systems or investment opportunities that also adhere to these standards.

It is important to note that while the financial statements are prepared in accordance with U.S. GAAP, management is still required to make certain assumptions and estimates that could affect the reported amounts. These estimates are disclosed in the notes to the financial statements. Additionally, the Independent Auditor's Report included in the FDD indicates that KPMG LLP has audited the consolidated financial statements of Jack in the Box SPV Guarantor, LLC and its subsidiaries, providing an opinion that the financial statements present fairly the company's financial position in accordance with U.S. generally accepted accounting principles.