What is the amount of the Franchise Fee that a Jack In The Box licensee must pay to the company?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon execution of such franchise documents, Developer will pay the franchise fee of $50,000.00, as outlined in the Franchise Agreement, and shall otherwise comply in all respects with the obligations set forth therein.
In consideration of the rights granted herein, Developer shall pay to Company, concurrently with the signing of this Agreement, a development fee of $50,000 ("Development Fee").
Company will credit the Development Fee against the franchise fee under the Franchise Agreement for the Developed Restaurant.
Following Site Approval by Company of any proposed restaurant location, Developer shall enter into the then current form of the Jack in the Box 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).
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
According to the 2025 Jack In The Box FDD, a developer who signs a Development Agreement will pay a franchise fee of $50,000. This fee is paid upon execution of the franchise documents. The developer must also comply with all obligations outlined in the Franchise Agreement.
Prior to signing the Franchise Agreement, the developer must first obtain Expansion Approval, Site Approval, and Lease Approval. The $50,000 Development Fee is nonrefundable and is considered fully earned by Jack In The Box once paid. However, Jack In The Box will credit this Development Fee towards the franchise fee required under the Franchise Agreement for the Developed Restaurant.
It is important to note that the Development Agreement does not grant the developer any rights to use the Jack In The Box system or trademarks. These rights are only acquired upon entering into a Franchise Agreement with Jack In The Box. The Franchise Agreement is only entered into after Site Approval by Jack In The Box of any proposed restaurant location.