For Jack In The Box franchises in Maryland, when is the franchise fee due?

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, Jack In The Box defers the payment until the franchised restaurant actually opens for business. Once the restaurant opens, the franchisee is then required to pay the franchise fee to Jack In The Box. This deferral is a specific requirement implemented to comply with the Maryland Franchise Registration and Disclosure Law, likely due to the franchisor's financial condition as reviewed by the Maryland Attorney General's office.

This arrangement benefits prospective Jack In The Box franchisees in Maryland by reducing the initial financial burden. Instead of needing the full franchise fee amount before starting operations, franchisees can allocate those funds to other startup costs and only pay the fee once the restaurant is generating revenue. This can significantly ease cash flow constraints during the critical opening phase of the business.

It's important to note that while the franchise fee payment is deferred, it is still due in full upon the restaurant's opening. Franchisees should ensure they have a plan to cover this payment once operations commence. This deferred payment structure is not standard across all states or franchises, so it represents a specific advantage for those investing in Jack In The Box franchises within Maryland.