What was the operating lease income from closed restaurants and other for Jack In The Box in 2024?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
million. The leases have been accounted for as operating leases and contain initial terms of 16 years and 20 years.
Company as lessor — The following table presents rental income (in thousands):
| 2024 | 2023 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Owned Properties | - · · · · · · · · · · · · · · · · · · · | Leased Properties Total | Owned roperties | I | Leased Properties | Total | ||||||
| Operating lease income - franchise | $ 1 | 8,301 | $ | 242,111 | $ | 260,412 | $ | 17,805 | $ | 225,392 | $ | 243,197 |
| Variable lease income - franchise | 1 | 2,522 | 100,903 | 113,425 | 12,700 | 108,010 | 120,710 | |||||
| Amortization of sublease assets and liabilities, net | 1,591 | 1,591 | _ | 684 | 684 | |||||||
| Franchise rental revenues | $ 3 | 0,823 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 93–94)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, the operating lease income from closed restaurants and other sources totaled $7,693,000 in 2024. This figure is broken down into $31,000 from owned properties and $7,662,000 from leased properties.
This income likely comes from subleases or other agreements Jack In The Box has on properties that were formerly operating restaurants. Even after a restaurant closes, Jack In The Box may still derive some revenue from the property.
For a prospective franchisee, this indicates that Jack In The Box actively manages its real estate portfolio to maximize income, even from closed locations. While this income does not directly benefit franchisees, it reflects positively on the financial management of the brand.