What is the amount of the Franchise Fee that a Jack In The Box franchisee must pay to the company?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
Following Site Approval by Company of the proposed restaurant location, Developer shall enter into the then current form of the Franchise Agreement used by Company to grant franchises to operate Jack in the Box restaurants in the state in which the specified Developed Restaurant is located ("Franchise Agreement"), and shall pay the "Franchise Fee" (as defined in the Franchise Agreement).
Nothing in this Agreement shall be construed as obligating Company to enter into a Franchise Agreement with respect to any restaurant if Developer has not obtained Site Approval and Lease Approval in accordance with Section 8 and/or if
Developer is otherwise in breach of any of its obligations under this Agreement. Developer agrees not to open a Jack in the Box restaurant for business until all of Developer's obligations under this Agreement have been fulfilled.
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
According to the 2025 Jack In The Box FDD, the franchise agreement requires the developer to pay a 'Franchise Fee,' the amount of which is defined in the Franchise Agreement itself. The FDD states that after the company approves the proposed restaurant location, the developer must enter into the current Franchise Agreement used by Jack In The Box to operate restaurants in the state where the restaurant will be located. This agreement will specify the Franchise Fee amount.
For prospective Jack In The Box franchisees, this means the initial franchise fee is not a fixed amount stated directly in the Development Agreement. Instead, it is determined by the specific Franchise Agreement applicable at the time of signing, which may vary based on the restaurant's location. The Development Agreement does mention a $50,000 development fee, which is nonrefundable but will be credited against the franchise fee under the Franchise Agreement for the Developed Restaurant.
Therefore, while the Development Agreement requires entering into a Franchise Agreement and paying a Franchise Fee, the exact amount of this fee is detailed within that separate Franchise Agreement. Franchisees should carefully review the Franchise Agreement presented to them to understand the specific franchise fee applicable to their situation. They should also inquire about any factors that could influence the franchise fee, such as location or specific agreement terms.