In Minnesota, when does a Jack In The Box franchisee have to pay the development fee?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, in the State of Minnesota, Company will defer the payment of the Development Fee until the Franchised Restaurant that Developer will develop under this Agreement opens for business. Upon the opening of the Franchised Restaurant, Developer shall pay to Company the Development Fee.
Source: Item 22 — CONTRACTS (FDD page 94)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, the standard requirement to pay the development fee is modified for franchisees in Minnesota. Instead of paying upfront, Jack In The Box defers the payment of the development fee.
For a single-unit development agreement in Minnesota, Jack In The Box defers the payment of the development fee until the franchised restaurant opens for business. Upon the opening of the restaurant, the franchisee is then required to pay the development fee. This arrangement is specifically designed to comply with Minnesota franchise law.
For a multi-unit development agreement in Minnesota, Jack In The Box defers the payment of the development fee until the first franchised restaurant opens for business. Upon the opening of the first restaurant, the franchisee is then required to pay the development fee. This benefits the franchisee by reducing the initial financial burden and aligning the fee payment with the commencement of operations.