What is the maximum number of persons that can own Jack In The Box Developer?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. At no time shall Developer be owned by more than eight (8) persons. For the purpose of determining the number of persons owning a direct or indirect interest in Developer, each individual owner of a partnership or corporation, with a direct or indirect interest in Developer, and each trustee of any trust owning a direct or indirect interest, shall be considered an Owner of Developer.
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, the maximum number of persons that can own a Jack In The Box Developer is eight. This limitation applies whether the ownership is direct or indirect. For instance, if a partnership or corporation has an interest in the Developer, each individual owner within that entity is counted towards the maximum of eight. Similarly, each trustee of any trust that owns an interest in the Developer is also counted as an owner.
This restriction is significant for potential Jack In The Box developers because it limits the number of individuals who can collectively hold an interest in the development rights. This could impact how a developer structures their business, especially if they plan to involve multiple investors or partners. It ensures that the ownership structure remains manageable and that the franchisor can effectively oversee the individuals responsible for developing the Jack In The Box restaurants.
Furthermore, any changes to the ownership structure, including assignments among existing owners, require the franchisor's approval. This provision allows Jack In The Box to maintain control over who is involved in the development of their franchises and ensures that all owners meet their standards and obligations. This requirement is in place to protect the brand and maintain consistency across all franchise locations. Therefore, prospective franchisees need to carefully consider this limitation when forming their development entity and planning for future ownership changes.