What is the purpose of Exhibit B in the Jack In The Box Disclosure Document?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT B
Development Area [Map to be provided on Exhibit B-1]
[IF NON-EXCLUSIVE, DELETE THIS PARAGRAPH] Developer is granted protected rights within the Development Area described on Exhibit B-1, attached hereto and incorporated herein by this reference; provided, however, that (i) such territorial protection will terminate in the event Developer fails to meet its obligations under this Agreement or any other agreement to develop restaurants within the Development Area; and (ii) Developer understands and acknowledges that certain nontraditional locations within the Development Area are excluded from the Agreement as they may be more appropriately developed by Company, or by a company that specializes in institutional foodservice operations or has exclusivity rights or master lease rights. The term nontraditional location includes, but is not limited to, airports, train stations, bus stations, stadia, arenas, other sports facilities, hotels, resorts, convention centers, military facilities, schools, colleges, universities, hospitals or medical facilities, amusement parks, recreational theme parks, racetracks, motorsports parks, raceways, speedways, museums, galleries, theaters, entertainment facilities or venues, other performative facilities, tourist centers, business or industrial food service venues, venues in which food service is or may be provided by a master concessionaire or contract foodservice provider, public transportation facilities, government facilities, shopping and outlet malls, Indian reservations, casinos, and similarly situated sites; but does not include c-stores, travel plazas or dark / ghost kitchens. Notwithstanding any provision of the Agreement to the contrary, at any time, Company may develop and operate, or franchise others to develop and operate, Jack in the Box® restaurants at such sites whether or not the sites are located within the Development Area. The development and operation of such sites by Company and/or other developers shall not constitute a violation of the Agreement. If Company permits Developer to develop such a site, that site will not count toward the development obligations under the Agreement.
EXHIBIT B-1
Map of Development Area
[MAP - to be provided]
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, Exhibit B pertains to the development area granted to a developer. This exhibit includes a map, referenced as Exhibit B-1, which delineates the specific geographic region where the developer has certain protected rights.
However, these protected rights within the development area are conditional. They can be terminated if the developer fails to meet their obligations under the Development Agreement or any other agreement related to developing restaurants within the designated area. This means a developer must adhere to the agreed-upon schedule and terms to maintain their territorial protection.
The document also clarifies that certain nontraditional locations within the development area are excluded from the agreement. These locations, such as airports, train stations, and hospitals, may be developed by Jack In The Box itself or by companies specializing in institutional foodservice. Jack In The Box retains the right to develop or franchise restaurants at these nontraditional sites, regardless of their location within the development area, without it being considered a violation of the agreement. If Jack In The Box allows the developer to build at one of these sites, it will not count towards the development obligations under the agreement.