What is the impact of a franchisee-to-franchisee transfer on the inclusion of a Jack In The Box restaurant in the financial performance data?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
Tables 1 and 3 represent 1,831 franchised Restaurants for 2023 and 1,786 franchised Restaurants for 2024. For 2023, the following franchised Restaurants were excluded: eighteen (18) restaurants that opened in 2023; eight (8) restaurants that permanently closed in 2023; seventy eight (78) restaurants with insufficient data because the current franchise operator did not operate the unit for the entire fiscal year 2023 (for example, closed for remodel or rebuild or a franchisee to franchisee transfer occurred or company to franchisee transfer); eighty-five (85) franchised C-Store/Travel Plaza Restaurants, and thirty (30) restaurants operated in Hawaii/Guam. For 2024, the following franchised Restaurants were excluded: nineteen (19) restaurants that opened in 2024; twenty-seven (27) restaurants that permanently closed in 2024; one hundred fifteen (115) restaurants with insufficient data because the current franchise operator did not operate the unit for the entire fiscal year 2024 (for example, closed for remodel or rebuild or a franchisee to franchisee transfer occurred or company to franchisee transfer); eighty-seven (87) franchised C-Store/Travel Plaza Restaurants, and thirty-one (31) restaurants operated in Hawaii/Guam.
Tables 2 and 4 represent 83 franchised C-Store/Travel Plaza Restaurants for 2023 and 81 franchised C-Store/Travel Plaza Restaurants for 2024. For 2023, one (1) restaurant that permanently closed in 2023, three (3) C-Store/Travel Plaza Restaurants were excluded due to insufficient data because the current franchise operator did not operate the unit for the entire fiscal year 2023 (for example, closed for remodel or rebuild or a franchisee to franchisee transfer occurred). For 2024, two (2) restaurants that opened in 2024, five (5) C-Store/Travel Plaza Restaurants were excluded due to insufficient data because the current franchise operator did not operate the unit for the entire fiscal year 2024 (for example, closed for remodel or rebuild or a franchisee to franchisee transfer occurred).
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATION (FDD pages 81–87)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, a franchisee-to-franchisee transfer can impact whether a restaurant is included in the financial performance data. Specifically, restaurants are excluded from Tables 1 and 3 if the current franchise operator did not operate the unit for the entire fiscal year. This exclusion applies to restaurants where a franchisee-to-franchisee transfer occurred during the reporting period.
For the 12-month period ending September 30, 2023, seventy-eight (78) restaurants were excluded from Tables 1 and 3 due to insufficient data resulting from a franchisee-to-franchisee transfer. For the 12-month period ending September 30, 2024, one hundred fifteen (115) restaurants were excluded for the same reason. This means that if you are looking at purchasing a Jack In The Box franchise that was recently transferred, its performance data may not be fully represented in the historical financial performance representations.
Similarly, for franchised C-Store/Travel Plaza Restaurants, three (3) were excluded in 2023 and five (5) in 2024 from Tables 2 and 4 due to franchisee-to-franchisee transfers. This exclusion ensures that the financial performance data accurately reflects a full year of operation under a single franchisee, providing a more consistent basis for evaluation. A prospective franchisee should be aware of these exclusions when reviewing the financial performance data, as it may not fully represent the potential of a recently transferred location.