When and how must a Jack In The Box franchisee pay the taxes owed to the company?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
- F. Company shall have no liability for any excise, property or other taxes levied by any governmental tax authority upon Licensee. Licensee shall make timely filings of all tax returns, and shall pay when due all taxes levied or assessed in connection with the possession, ownership or operation of the Licensed Restaurant and the Premises. Licensee may contest the validity or the amount of the tax in accordance with applicable procedures of the jurisdiction, but Licensee shall in no event permit a tax sale or seizure of the Licensed Restaurant, the Premises, or any equipment.
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, the franchisee is responsible for the timely filing of all tax returns and must pay all taxes levied or assessed in connection with the possession, ownership, or operation of the licensed restaurant and the premises when they are due.
Jack In The Box will not be held liable for any excise, property, or other taxes imposed on the franchisee by any governmental tax authority. However, the franchisee is permitted to contest the validity or amount of the tax in accordance with the jurisdiction's applicable procedures.
However, the franchisee cannot allow a tax sale or seizure of the licensed Jack In The Box restaurant, the premises, or any equipment under any circumstances.