Does the Jack In The Box balance sheet include unaudited information?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
s, but be aware that not all such franchisees will be able to communicate with you.
ITEM 21 FINANCIAL STATEMENTS
Attached hereto as Exhibit A are the audited consolidated financial statements of our parent company, Jack in the Box SPV Guarantor, LLC and subsidiaries ("SPV"), as
of September 29, 2024 and October 1, 2023, the related consolidated statements of earnings, member's deficit, and cash flows for each of the fifty-two week periods ended September 29, 2024, October 1, 2023 and October 2, 2022, and the unaudited consolidated statements as of January 19, 2025. Under the Guaranty of Performance (included in Exhibit A), SPV has absolutely and unconditionally guaranteed our duties and obligations under the Franchise Agreement.
Also included are the audited consolidated balance sheets of our indirect parent company, Jack in the Box Inc. and subsidiaries as of September 29, 2024 and October 1, 2023, the related consolidated statements of operations, comprehensive (loss) income, cash flows and stockholders' deficit for each of the fifty-two week periods ended September 29, 2024, October 1, 2023 and October 2, 2022. These financials are being included for disclosure purposes only. As reflected in Item 1, Jack in the Box, Inc.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 93–94)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, the financial statements include both audited and unaudited information. Specifically, the document includes audited consolidated balance sheets as of September 29, 2024, and October 1, 2023. It also contains unaudited consolidated statements as of January 19, 2025.
The inclusion of unaudited statements means that these figures have not been verified by an independent certified public accountant. The FDD explicitly advises prospective franchisees that these unaudited figures have not been reviewed or validated by a CPA. This implies a higher risk that the unaudited figures may contain errors or may not present a completely accurate picture of Jack In The Box's financial position.
For a potential Jack In The Box franchisee, this means exercising caution when reviewing the January 19, 2025, balance sheet. While the audited statements provide a solid basis for understanding the company's financials, the unaudited statements should be considered preliminary and subject to change. It would be prudent to seek clarification from Jack In The Box regarding any significant changes or trends observed in the unaudited statements compared to the audited ones. Consulting with a financial advisor to review and interpret these financial statements is also advisable.