Where in the Jack In The Box FDD is the initial franchise fee described?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 7: Estimated Initial Investment]
- (2) We describe the Initial Franchise Fee in Item 5.
| 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 make nonstructural changes, you must reimburse us for the costs. |
| Type of Expenditure | Estimated Amount or Estimated Low -High Range | Method of Payment | |
| Initial franchise fee2 | $50,000 | $50,000 | Lump sum |
If you are developing a nontraditional restaurant, certain categories of the identified costs may vary significantly from those disclosed above. We anticipate that at least the following expenditures will vary from those previously stated. The Initial Franchise Fee will be $25,000.
(17) Your estimated initial investment under the Development Agreement will vary depending on the number of Jack in the Box Restaurants you develop. The estimated initial investment chart reflects the minimum number of two (2) development commitments for new franchisees. For existing franchisees, the total development fee for two (2) development commitments will be twenty thousand dollars ($20,000). No part of this initial investment is refundable.
- (1) These initial investment figures are based on franchised and Company restaurant development costs to open MK12 prototypical buildings in fiscal years 2023 to 2024. Currently, the company has three (3) different prototypical buildings available for site-adaptation and use by franchise operators that have been designed to support varying site conditions such as property size, property shape, and preferred building orientation. The prototypical buildings range in size from 1,372 square feet to 2,440 square feet. All portions of the initial investment paid to the Company are fully earned by the Company when paid, and are not refundable. Your financing cost may affect your total investment significantly. You may, or may not, incur all the costs identified, and you may incur other costs that are specific to your project.
Source: Item 7 — Estimated Initial Investment (FDD pages 35–41)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, Item 7, which details the estimated initial investment, references Item 5 for a description of the initial franchise fee. Item 7 also provides specific information on the initial franchise fee amount. For a traditional restaurant, the initial franchise fee is $50,000, payable as a lump sum. However, if a franchisee is developing a nontraditional restaurant, the initial franchise fee is $25,000.
This means that prospective Jack In The Box franchisees can find the details about the initial franchise fee, including the amount and payment terms, in Item 5, as indicated in Item 7. The actual amount depends on whether the restaurant is a traditional or nontraditional location. This is a crucial piece of information for anyone evaluating the financial requirements to open a Jack In The Box franchise.
It is important to note that all portions of the initial investment paid to Jack In The Box are fully earned by the company when paid and are not refundable. Therefore, a potential franchisee should carefully consider their decision before paying the initial franchise fee. Additionally, for existing franchisees, the total development fee for two development commitments will be $20,000.