For Jack In The Box franchises in Hawaii, when is the franchise fee due?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following is added to the end of Section 2. of the Agreement:
Notwithstanding the foregoing, in the State of Hawaii, Company will defer the payment of the Franchise Fee until all of the Company's pre-opening obligations to Franchisee have been satisfied and 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 Jack In The Box's 2025 Franchise Disclosure Document, the standard procedure for franchise fee payments is modified for franchisees in Hawaii due to the Hawaii Franchise Investment Law. Instead of paying the franchise fee upfront, Jack In The Box defers the payment.
Specifically, Jack In The Box will wait to collect the franchise fee from Hawaii-based franchisees until all of its pre-opening obligations to the franchisee have been met. This includes tasks such as site selection, training, and providing necessary resources to get the restaurant ready for opening.
Once Jack In The Box has fulfilled these obligations and the franchised restaurant is ready to open for business, the franchisee is then required to pay the franchise fee. This arrangement helps to reduce the initial financial burden on new franchisees and ensures that Jack In The Box is committed to supporting them through the pre-opening phase.