factual

In Minnesota, when does a Jack In The Box licensee pay the franchise fee?

Jack_In_The_Box Franchise · 2025 FDD

Answer from 2025 FDD Document

  1. The following is added to the end of Section 2 of the Agreement:

Notwithstanding the foregoing, in the State of Minnesota, Company will defer payment of the Franchise Fee until the Licensed Restaurant opens for business. Upon the opening of the Licensed Restaurant, Licensee shall pay to Company the Franchise Fee.

Source: Item 22 — CONTRACTS (FDD page 94)

What This Means (2025 FDD)

According to the 2025 Jack In The Box Franchise Disclosure Document, in the state of Minnesota, the company defers payment of the franchise fee until the licensed restaurant opens for business. Upon the opening of the licensed restaurant, the licensee is required to pay the franchise fee to Jack In The Box. This amendment is made in recognition of the requirements of the Minnesota Franchises Law.

This deferred payment structure is beneficial for prospective franchisees in Minnesota as it reduces the initial financial burden. Instead of paying the franchise fee upfront, franchisees can allocate those funds towards setting up the restaurant and managing initial operating costs. This can significantly ease cash flow constraints during the critical pre-opening phase.

It's important to note that this deferred payment is specific to Minnesota due to state franchise laws. Franchisees in other states may have different payment schedules for the franchise fee. This deferred payment does not waive the fee entirely; it simply postpones the payment until the restaurant is operational. Franchisees should carefully review the Minnesota Franchise Agreement Amendment to fully understand their obligations and rights under this arrangement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.