What is the deadline for Jack In The Box franchisees to pay the monthly royalty fee?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
For Gross Sales from Games and Devices resulting from the operation or conduct of games or coin or token-operated devices such as pay telephones; cash, credit or debit machines (including automated teller machines); newspaper stands; and any type of vending machines, including, without limitation, electronic devices of all types (collectively, "Games and Devices"), Franchisee agrees to pay to Company, during the term of this Agreement, a royalty of forty percent (40%) of Gross Sales from Games and Devices (the "Royalty for Games and Devices"). The Royalty for Games and Devices is net of any tax, including excise tax, or other fee imposed upon Company due to the collection of the Royalty for Games and Devices, and shall be paid monthly on the fifteenth (15th) day following receipt by Franchisee of the said Gross Sales. Each payment shall be made payable to Company or Company's designee.
B. Marketing Fee
Franchisee must pay to Company a monthly marketing fee (net of any tax or other fee imposed thereon) based on a percentage of Franchisee's Gross Sales (the "Marketing Fee"). As of the date of this Agreement, the Marketing Fee is five percent (5%) of Gross
Sales. Company has the right to increase or decrease the Marketing Fee percentage. It may only increase the Marketing Fee percentage upon majority vote, described as follows: Franchise Operators and Company will have one vote for each JACK IN THE BOX restaurant that they operate and that pays the then-standard Marketing Fee; however, Company's voting rights will never fall below twenty percent (20%) of the total number of possible votes, regardless of the number of restaurants it operates. In no event will the Marketing Fee percentage be increased in any twenty-four (24) month period by more than .5% of Gross Sales. The Marketing Fee shall be due and payable by the fifteenth (15th) day of each month for the preceding month. Each payment shall be made payable to Company or Company's designee.
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, franchisees are required to pay two types of royalties: a royalty for games and devices and a marketing fee. The royalty for games and devices is 40% of gross sales from games and devices.
The marketing fee is a percentage of the franchisee's gross sales. As of the date of the agreement, the marketing fee is 5% of gross sales. Jack In The Box has the right to increase or decrease the marketing fee percentage, but it may only increase the marketing fee percentage upon a majority vote. In no event will the marketing fee percentage be increased in any twenty-four month period by more than 0.5% of gross sales.
Both the royalty for games and devices and the marketing fee are due and payable by the fifteenth (15th) day of each month for the preceding month. Each payment shall be made payable to Jack In The Box or Jack In The Box's designee. If any payment is not paid by its due date, the franchisee agrees to pay interest at the then-current rate established by Jack In The Box under its Franchise Payment Policy or the maximum rate permitted by law, whichever is less. Additionally, if the franchisee does not pay the invoice by the due date, the franchisee is obligated to pay any collection and legal expenses, including attorneys' fees, necessary to obtain full payment of the invoice amount.