In a Jack In The Box build-to-suit arrangement, what does the company lease to the franchisee?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
(4) The cost of land will vary widely, depending upon size and location of the property and whether you purchase or own the land or enter into a lease arrangement therefore. (See Exhibit J, Lease Agreement, for a description of lease terms if you lease from the Company.) The size of property necessary to develop a new Jack in the Box restaurant can vary greatly depending upon, but not limited to, the size of the building constructed, desired drive-thru lane configuration, applicable development code requirements and zoning restrictions, as well as other influences such as access and parking agreements with adjoining properties, landlord or other third-party requirements.
Typical physical site criteria would include approximately 25,000 - 40,000 square feet, minimum of approximately 130 feet of frontage depending on building orientation, adequate access into and out of the property, ability to accept deliveries from an approximate 75' tractor-trailer truck, and a dedicated parking area to accommodate 14 - 32 spaces depending on site-specific requirements.
Source: Item 10 — FINANCING (FDD pages 49–50)
What This Means (2025 FDD)
Based on the 2025 Jack In The Box Franchise Disclosure Document, if a franchisee chooses to lease land from Jack In The Box, Exhibit J, Lease Agreement, describes the lease terms. The FDD notes that the cost of land varies widely depending on the size and location of the property and whether the franchisee purchases or leases the land. The size of property necessary to develop a new Jack In The Box restaurant can vary greatly depending upon factors such as the size of the building constructed, desired drive-thru lane configuration, applicable development code requirements and zoning restrictions, as well as other influences such as access and parking agreements with adjoining properties, landlord or other third-party requirements. Typical physical site criteria would include approximately 25,000 - 40,000 square feet, a minimum of approximately 130 feet of frontage depending on building orientation, adequate access, the ability to accept deliveries from an approximate 75' tractor-trailer truck, and a dedicated parking area to accommodate 14 - 32 spaces depending on site-specific requirements.
This means that the specific terms of the lease, including the property size and cost, are highly dependent on the individual location and circumstances. Prospective franchisees should carefully review Exhibit J, Lease Agreement, to understand the obligations and costs associated with leasing land from Jack In The Box. They should also consider the factors that influence property size requirements, such as building size, drive-thru configuration, and local regulations.
Understanding these factors is crucial for franchisees to accurately estimate their initial investment and ongoing expenses. It is also important to conduct thorough due diligence on potential locations to ensure they meet Jack In The Box's requirements and are financially viable.