In Hawaii, when does a Jack In The Box franchisee pay the franchise fee?

According to Jack In The Box's 2025 Franchise Disclosure Document, a franchisee in Hawaii does not pay the franchise fee until certain conditions are met. Specifically, Jack In The Box defers the payment of the franchise fee until all of the company's pre-opening obligations to the franchisee have been satisfied and the franchised restaurant opens for business. Once the restaurant is open, the franchisee is then required to pay the franchise fee to Jack In The Box. This deferral is in place to comply with the Hawaii Franchise Investment Law.

This arrangement is beneficial for prospective Jack In The Box franchisees in Hawaii as it reduces the initial financial burden. Instead of paying the franchise fee upfront, the franchisee can use those funds to cover pre-opening expenses such as construction, equipment, and initial inventory. This can significantly ease cash flow constraints during the critical startup phase of the business.

It is important to note that this deferral of the franchise fee is specific to Hawaii and is designed to comply with state regulations. Franchisees in other states may have different payment schedules for the franchise fee. Prospective franchisees should carefully review the FDD and any state-specific addenda to understand the payment terms applicable to their specific location.