For a Jack In The Box franchise in Maryland, when is the franchise fee due?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary in the State of Maryland, Company will defer the payment of the Franchise Fee until the Licensed Restaurant opens for business. Upon the opening, Licensee shall pay to Company the Franchise Fee.
Source: Item 22 — CONTRACTS (FDD page 94)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, the standard policy for franchise fee payments is modified for franchisees in Maryland. Instead of paying the franchise fee upfront, Maryland franchisees are allowed to defer payment.
Specifically, Jack In The Box will defer the payment of the franchise fee until the franchised restaurant opens for business. Upon the opening of the restaurant, the franchisee is then required to pay the franchise fee to Jack In The Box. This arrangement is in place to comply with the Maryland Franchise Registration and Disclosure Law, providing some financial flexibility for new franchisees in that state.
This deferral of payment can be a significant benefit for franchisees as it reduces the initial financial burden. It allows them to allocate their capital towards setting up the restaurant and managing initial operating costs, rather than paying the franchise fee upfront. This deferred payment structure is a specific accommodation for Maryland franchisees due to state regulations.