How is the loan repaid under the Jack In The Box Development Incentive Program?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
entive, at our sole discretion:
If you open the Restaurant on or before the required date in the development schedule, we will loan you $150,000 at 0% interest to be used solely for development costs associated with that restaurant. The loan will be repaid by crediting 100% of the royalty payments for that restaurant otherwise due until the loan is paid in full (i.e., payments will be made by crediting the appropriate portion of royalty payments toward the principal balance outstanding). If the particular restaurant is sold or permanently closed and the loan has not been fully repaid, the remaining principal balance is due in full.
If you close a restaurant and then open a replacement restaurant, it will not be eligible for this incentive. The Company may discontinue or modify this Developmen
Source: Item 10 — FINANCING (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, the Development Incentive Program offers a $150,000 loan at 0% interest to qualified developers who open a restaurant on or before the required date in the development schedule. This loan is specifically for development costs associated with that restaurant.
The loan repayment is facilitated by crediting 100% of the royalty payments that would otherwise be due for that restaurant. These royalty credits are applied towards the outstanding principal balance of the loan until it is fully repaid. This means that instead of paying royalties to Jack In The Box, the franchisee's royalty payments are directly used to pay off the loan.
However, if the Jack In The Box restaurant is sold or permanently closed before the loan is fully repaid, the remaining principal balance becomes immediately due in full. This condition creates a financial obligation for the franchisee to settle the outstanding debt in the event of a sale or closure. Jack In The Box also retains the right to discontinue or modify the Development Incentive Program at any time, which could impact the availability and terms of the loan for future developers.