What accounting documents must a Jack In The Box franchisee periodically submit to the company?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to maintaining the above-referenced documents, Franchisee agrees to provide Company with the following documents in the time frames specified:
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- Quarterly and fiscal year to date profit and loss statements for the business, in the format prescribed by Company. These must be provided to Company within twenty-seven (27) days after the end of each quarter.
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- Quarterly balance sheets for the business in accordance with the fiscal year of the Franchisee. These must be submitted within twenty-seven (27) days of the end of each quarter, including the fourth quarter, of Franchisee's fiscal year.
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- Complete annual financial statements, which (if required by Company) shall be audited by a Certified Public Accountant acceptable to Company, together with a full identification of all persons with any ownership interest in the Franchisee and Franchised Restaurant, and the nature and extent of such interest. These must be submitted to Company within ninety (90) days after the close of each fiscal year of Franchisee. If Franchisee adjusts the annual financial statements after submitting them to Company, then Franchisee agrees to supply Company with such adjustments within thirty (30) days after making the adjustment.
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- If Company is unable to access, or for any reason does not obtain, Franchisee's weekly sales by restaurant through electronic polling of Franchisee's computer system, then Franchisee must submit its weekly sales figures to Company each Monday morning by telephone or facsimile, or at such time, or by such other means, as Company reasonably requests.
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- Such other accounting and financial records as Company may reasonably request from time to time.
The items listed in paragraphs 1, 2 and 3 above must be prepared in accordance with accounting principles generally accepted in the United States of America, which are consistently applied.
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, franchisees are required to provide several accounting documents to the company on a regular basis. These submissions allow Jack In The Box to monitor the financial health and performance of its franchise locations.
The specific documents that a Jack In The Box franchisee must submit include: quarterly and year-to-date profit and loss statements within 27 days after each quarter's end, quarterly balance sheets within 27 days of each quarter's end, and complete annual financial statements, potentially audited by a Certified Public Accountant, within 90 days after the close of the franchisee's fiscal year. If adjustments are made to the annual financial statements after submission, the franchisee must provide these adjustments to Jack In The Box within 30 days.
Additionally, if Jack In The Box cannot electronically access the franchisee's weekly sales data, the franchisee is obligated to submit weekly sales figures every Monday morning via telephone, facsimile, or another method requested by Jack In The Box. The financial statements must be prepared following accounting principles generally accepted in the United States of America. Jack In The Box also retains the right to request other accounting and financial records from time to time as deemed reasonably necessary.