What were the proceeds from the sale of company-operated restaurants for Jack In The Box in 2023?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
ANCHISE ACQUISITIONS
Refranchisings — The following table summarizes the number of restaurants sold to franchisees and gains recognized in each fiscal year (dollars in thousands):
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Restaurants sold to Jack in the Box franchisees | 5 | 15 | |
| Restaurants sold to Del Taco franchisees | 47 | 111 | |
| Proceeds from the sale of company-operated restaurants (1) | $ 19,400 | $ 85,221 | $ 6,391 |
| Broker commissions | _ | (1,614) | _ |
| Net assets sold (primarily property and equipment) | (5,310) | (17,101) | (1,565) |
| Goodwill related to the sale of company-operated restaurants | (6,835) | (35,544) | (948) |
| Franchise fees | (1,266) | (3,086) | |
| Sublease liabilities, net |
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 proceeds from the sale of company-operated restaurants in 2023 were $85,221,000. This figure is part of the consolidated financial statements of Jack In The Box SPV Guarantor, LLC and subsidiaries. It's important to note that this amount includes additional proceeds of $0.9 million related to the extension of underlying franchise and lease agreements from the sale of restaurants in prior years.
These proceeds are a significant component of Jack In The Box's financial activities. The sale of company-operated restaurants is a strategic decision that can impact the company's revenue and profitability. For a prospective franchisee, this indicates the company's willingness to refranchise, which could present opportunities to acquire existing locations. Understanding the reasons behind these sales and the terms of the transactions is crucial for assessing the potential value and stability of the franchise system.
Furthermore, the FDD also details other financial aspects related to these sales, such as broker commissions of $1,614,000, net assets sold of $17,101,000, and goodwill related to the sale of company-operated restaurants amounting to $35,544,000. These figures provide a more comprehensive view of the financial implications of selling company-operated restaurants. Additionally, there were gains on the sale of company-operated restaurants of $17,998,000.
It is important for potential franchisees to review the complete financial statements and related notes in the FDD to fully understand the context and implications of these transactions. Analyzing these figures in conjunction with other financial data, such as revenues and expenses, can provide valuable insights into the financial health and strategic direction of Jack In The Box.