What details are included for each Jack In The Box agreement signed but unit not yet opened?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
lighting and other equipment vendors, and (v) any costs associated with the purchase and set up of small wares at the Developed Restaurant.
- G.
Upon Developer's written request, Company will furnish standard prototypical building plans and specifications for Jack in the Box restaurants reflecting Company's requirements for design, decor, finishes, furnishings, furniture, layout, equipment, fixtures and signs for Jack in the Box restaurants as in effect from time to time.
Developer must use a Company approved architect to for site-adaption, design, engineering, and permitting.
- H.
For each of the Developed Restaurants, it shall be the responsibility of Developer to have prepared all required construction plans and specifications that comply with applicable ordinances, building codes, Federal laws, permit requirements, and lease requirements and restrictions.
If alterations of any kind are required for any reason, Developer shall submit to Company an explanation of any such changes to Company's prototypical construction plans and specifications, and the Site Plan approved by Company.
Such changes must be approved by Company in writing in accordance with Company site plan submission, review, and approval procedures, but before any work is begun.
Any cost, including engineering and architectural fees, incurred in obtaining Company review and approvals by the appropriate governmental authorities of the Site Plan, or other plans, specifications and layouts shall be paid by the Developer.
- **9.
OPENING OF THE RESTAURANT**.Following Site Approval by Company of any proposed restaurant location, Developer shall enter into the then current form of the Jack in the Box Franchise Agreement used by Company to grant franchises to operate Jack in the Box restaurants in the state in which the specified Developed Restaurant is located ("Franchise Agreement"), and shall pay the "Franchise Fee" (as defined in the Franchise Agreement).
Nothing in this Agreement shall be construed as obligating Company to enter into a Franchise Agreement with respect to any restaurant if Developer has not obtained Expansion Approval, Site Approval and Lease Approval in accordance with Section 8 and/or if Developer is otherwise in breach of any of its obligations under this Agreement.
Developer agrees not to open a Jack in the Box restaurant for business until all of Developer's obligations under this Agreement have been fulfilled.
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
Based on the 2025 Jack In The Box Franchise Disclosure Document, the details of agreements signed but units not yet opened are related to the Development Agreement. The Development Agreement outlines the developer's responsibilities in preparing the construction plans and specifications that comply with applicable ordinances, building codes, federal laws, permit requirements, and lease requirements and restrictions.
According to the FDD, Jack In The Box requires the developer to use a company-approved architect for site adaptation, design, engineering, and permitting. If any alterations are required to the prototypical construction plans, the developer must submit an explanation of these changes to Jack In The Box for written approval before starting any work. The developer is responsible for covering all costs, including engineering and architectural fees, associated with obtaining Jack In The Box's review and approvals from governmental authorities for the site plan or other plans, specifications, and layouts.
Furthermore, the FDD states that after Jack In The Box approves a proposed restaurant location, the developer must enter into the current form of the Jack In The Box Franchise Agreement and pay the franchise fee. However, the document clarifies that Jack In The Box is not obligated to enter into a Franchise Agreement if the developer has not obtained the necessary approvals or is in breach of their obligations under the Development Agreement. The developer also agrees not to open a Jack In The Box restaurant until all obligations under the Development Agreement are fulfilled.