What interest rate will Jack In The Box charge on delinquent payments?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
If any payment to Franchisor required under this Agreement is not paid by its due date, Franchisee agrees to pay interest at the then-current rate established by Franchisor under its Franchise Payment Policy or the maximum rate permitted by law, whichever is less. Additionally, if Franchisee does not pay the invoice by the due date, Franchisee is obligated to pay any collection and legal expenses, including attorneys' fees, necessary to obtain full payment of the invoice amount. Franchisor's acceptance of any payment less than the full amount of any invoice will not constitute a waiver of Franchisor's right to collect the balance, and will not be deemed satisfaction of Franchisor's claim.
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, if a franchisee fails to make payments by the due date, they will be charged interest. The interest rate will be the then-current rate established by Jack In The Box under its Franchise Payment Policy or the maximum rate permitted by law, whichever is less.
In addition to interest on late payments, the franchisee is also responsible for covering any collection and legal expenses, including attorney's fees, that Jack In The Box incurs while trying to recover the full payment. It is important to note that Jack In The Box's acceptance of a partial payment does not waive their right to pursue the remaining balance owed.
For a prospective Jack In The Box franchisee, this means that it is crucial to make all payments on time to avoid incurring interest charges and potential legal expenses. Understanding the specific interest rate outlined in the Franchise Payment Policy is essential for managing finances and avoiding unnecessary costs. Franchisees should clarify the current interest rate and the terms of the Franchise Payment Policy with Jack In The Box before signing the franchise agreement.