What were the gains on the sale of company-operated restaurants for Jack In The Box in 2022?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
ANCHISE ACQUISITIONS
Refranchisings — The following table summarizes the number of restaurants sold to franchisees and gains recognized in each fiscal year (dollars in thousands):
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Restaurants sold to Jack in the Box franchisees | 5 | 15 | |
| Restaurants sold to Del Taco franchisees | 47 | 111 | |
| Proceeds from the sale of company-operated restaurants (1) | $ 19,400 | $ 85,221 | $ 6,391 |
| Broker commissions | _ | (1,614) | _ |
| Net assets sold (primarily property and equipment) | (5,310) | (17,101) | (1,565) |
| Goodwill related to the sale of company-operated restaurants | (6,835) | (35,544) | (948) |
| Franchise fees | (1,266) | (3,086) | |
| Sublease liabilities, net |
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 gains on the sale of company-operated restaurants in 2022 were $3,878. This figure represents the net profit Jack In The Box realized from selling company-owned restaurants to franchisees or other entities during that fiscal year. These gains are calculated by subtracting the costs associated with the sale (such as broker commissions, net assets sold, goodwill, franchise fees, sublease liabilities, lease terminations, and other related expenses) from the proceeds received from the sale of the restaurants.
For a prospective franchisee, this information provides insight into Jack In The Box's strategy regarding company-operated restaurants. A consistent pattern of gains from restaurant sales might indicate a strategy of refranchising, where the company aims to shift towards a higher proportion of franchised locations. This can have implications for franchisees, as it may lead to increased support and resources being directed towards franchised operations.
However, it is important to note that gains from restaurant sales can vary significantly from year to year, as seen by the changes in gains from 2022 ($3,878) to 2023 ($17,998) and 2024 ($3,255). These fluctuations can be influenced by factors such as the number of restaurants sold, the financial performance of those restaurants, and the terms of the sale agreements. Franchisees should consider these figures as part of a broader analysis of Jack In The Box's financial performance and strategic direction, rather than relying solely on a single year's data.
Additionally, the FDD also indicates the number of restaurants sold to Jack in the Box franchisees in 2022 was 15. Understanding the number of restaurants sold in relation to the gains can provide a better understanding of the value and profitability of these transactions. A prospective franchisee should also investigate the reasons behind these sales, such as strategic refranchising efforts or the performance of specific locations, to assess the potential impact on the franchise system.