What were the franchise rental revenues for Jack In The Box, and how do they compare to the franchise royalties?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
agreements.
Disaggregation of revenue — The following table disaggregates revenue by segment and primary source for the fiscal year ended September 29, 2024 (in thousands):
| J | ack in the Box | Del Taco | Total | ||
|---|---|---|---|---|---|
| Company restaurant sales | $ | 427,057 | $ 281,978 | $ 709,035 | |
| Franchise rental revenues | 347,227 | 28,201 | 375,428 | ||
| Franchise royalties | 198,377 | 31,714 | 230,091 | ||
| Marketing fees | 197,900 | 26,258 | 224,158 | ||
| Technology a |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 93–94)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, the franchise rental revenues for Jack In The Box totaled $347,227,000, while Del Taco's franchise rental revenues were $28,201,000. This brings the total franchise rental revenue to $375,428,000 for the fiscal year ended September 29, 2024. In comparison, Jack In The Box's franchise royalties amounted to $198,377,000 and Del Taco's franchise royalties were $31,714,000, resulting in a total of $230,091,000 in franchise royalties. These figures are presented in thousands of dollars.
For a prospective franchisee, this indicates that Jack In The Box generates significantly more revenue from franchise rental income than from franchise royalties. The rental revenue exceeds the royalty revenue by $145,337,000 ($375,428,000 - $230,091,000). This may suggest that a substantial portion of Jack In The Box's revenue model relies on leasing or subleasing properties to franchisees, in addition to the standard royalty fees based on gross sales.
This difference could have implications for franchisees, potentially influencing site selection strategies and lease negotiations. It also highlights the importance of understanding the terms and conditions related to property leasing within the franchise agreement. Franchisees should carefully review the real estate aspects of the franchise, including lease terms, rental rates, and any obligations related to property maintenance or improvements. Understanding these financial dynamics is crucial for assessing the overall profitability and sustainability of a Jack In The Box franchise.