For a Jack In The Box franchise in Washington, when is the franchise fee due?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
WASHINGTON FRANCHISE AGREEMENT AMENDMENT
In recognition of the requirements of the Washington Franchise Investment Protection Act, Wash. Rev. Code §§ 19.100.010 through 19.100.940 (the "Act"), the parties to the attached JACK IN THE BOX FRANCHISE AGREEMENT (the "Agreement") agree as follows:
- The following is added to the end of Section 2 of the Agreement:
Notwithstanding the foregoing, Company will defer the payment of the Franchise Fee until the Franchised Restaurant opens for business. Upon the opening of the Franchised Restaurant, Franchisee 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 payment schedule for the franchise fee is modified for franchisees in Washington state. Instead of paying the franchise fee upfront, Jack In The Box defers the payment.
Specifically, the Washington Franchise Agreement Amendment states that the franchise fee is not due 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 deferral is in place to comply with the Washington Franchise Investment Protection Act.
This arrangement benefits prospective Jack In The Box franchisees in Washington by reducing the initial investment required to start the franchise. Franchisees do not have to pay the franchise fee until they are ready to open their restaurant, which can help with cash flow during the initial setup phase. This amendment ensures that the terms of the franchise agreement adhere to Washington state law, providing additional protection for franchisees operating in Washington.