What is the development fee for new Jack In The Box franchisees for the first restaurant?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
open, an offset restaurant to replace any such existing location(s). Company also reserves the right to grant franchises for the operation of, or to itself operate restaurants, other than Jack in the Box restaurants, within the Development Area.
- B. This Agreement is not a Franchise Agreement and does not grant to Developer any right to use the System or the Marks; any such rights will be acquired, if at all, only under and
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, a new developer must pay a development fee of $50,000 when signing the Development Agreement. This fee grants the developer rights to open Jack In The Box restaurants within a specific area.
This $50,000 Development Fee is nonrefundable and is considered fully earned by Jack In The Box upon payment. However, the FDD states that Jack In The Box will credit this Development Fee against the initial franchise fee required under the Franchise Agreement for the first restaurant developed.
This means that while the initial outlay is $50,000, the franchisee will receive credit for this amount when they enter into the Franchise Agreement for their first Jack In The Box location. This credit effectively reduces the initial franchise fee by the amount already paid as a development fee.