What costs are included if Jack In The Box cures a lease default?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
ed sites are refundable.
ITEM 6 OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| De-identification Costs | Any costs incurred to de- identify the premises | Upon Demand | If you fail to de-identify the premises after termination or expiration and we ma |
Source: Item 6 — OTHER FEES (FDD pages 27–35)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, if a franchisee fails to meet their obligations under the lease agreement, Jack In The Box has the right to cure the default. If Jack In The Box chooses to cure the default, the franchisee is responsible for paying all costs incurred by Jack In The Box, in addition to interest.
This means that a Jack In The Box franchisee could face significant and unpredictable expenses if they fail to meet their lease obligations. These costs are uncapped and depend entirely on the actions Jack In The Box deems necessary to remedy the default. The FDD does not specify what constitutes a lease obligation.
It is important for prospective franchisees to fully understand the terms of the lease agreement and their obligations to avoid potential defaults and associated costs. Franchisees should maintain open communication with Jack In The Box regarding any potential difficulties in meeting lease obligations to explore possible solutions and mitigate potential costs.