What was the closing date of the securitization transaction involving the Jack in the Box brand?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
On or about July 8, 2019 (the "Closing Date"), Jack in the Box Inc. ("JIB"), a Delaware corporation, and various of its direct and indirect subsidiaries, closed a securitization transaction involving the Jack in the Box brand (the "Securitization"), as part of which JIB and certain of its subsidiaries contributed certain of their assets, including intellectual property, real and personal property and equipment and related leases and subleases, notes and indebtedness of franchisees, and the business and related agreements concerning sourcing and sales of goods and services, to the Company or an affiliated entity within the securitization structure. All of the assets, including intellectual property, necessary to make the offering described in this disclosure document have been conveyed to the Company.
On the Closing Date, JIB ceased offering and selling new domestic franchises and contributed all then-existing U.S. Jack in the Box franchise agreements, development agreements, and related franchisee notes and guarantee agreements, among other assets, to us. Prior to this date, JIB offered and sold franchises in the U.S. As of the Closing Date, JIB entered into a management agreement with us to act as our manager ("Manager"). The primary responsibilities and activities of JIB as Manager include administering collections and performing certain franchising, marketing, development, real estate, intellectual property, technology, operational, and reporting services on our behalf. However, as franchisor, we will be responsible and accountable to you to make sure that all services we promise to perform under the agreements you sign with us are performed in compliance with the applicable agreement.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, the closing date of the securitization transaction involving the Jack in the Box brand was on or about July 8, 2019. This securitization transaction involved Jack in the Box Inc. (JIB) and its subsidiaries contributing certain assets to Different Rules, LLC, the current franchisor, or an affiliated entity. These assets included intellectual property, real and personal property, equipment, leases, franchisee notes, and agreements related to sourcing and sales.
This transaction is significant for prospective franchisees because it explains the relationship between Jack in the Box Inc. (JIB) and Different Rules, LLC. JIB, the predecessor company, transferred the assets necessary for franchising to Different Rules, LLC. As of the closing date, JIB ceased offering new domestic franchises and contributed all existing U.S. Jack in the Box franchise agreements and related assets to Different Rules, LLC.
JIB now acts as the manager for Different Rules, LLC, handling various franchising, marketing, development, and operational services. However, Different Rules, LLC, as the franchisor, remains responsible and accountable to the franchisees for ensuring that all promised services are performed according to the franchise agreements. This structure means that while JIB manages many aspects of the franchise system, the legal responsibility for fulfilling the franchise agreement lies with Different Rules, LLC.