What does Jack In The Box require suppliers to consistently comply with?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company requires that suppliers consistently comply with all of the Company's standards, specifications, and contractual expectations. This may include, without limitation, programs, access requirements, third party audit requirements, initial and ongoing sampling requirements and microbiological surveillance programs. We visit and inspect the approved suppliers' facilities on a continuing basis for announced and unannounced inspections, and independently evaluate and test the products the suppliers are producing. Termination of a supplier as an approved supplier occurs by written notice to the supplier. If a supplier is no longer approved, we will notify all approved distributors and may notify individual franchisees. Upon receipt of written notice of a revocation of approval, you must stop selling any unapproved products, and stop buying from the unapproved supplier. The company will determine an appropriate supplier and/or product replacement for you.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 41–46)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, suppliers must consistently comply with the company's standards, specifications, and contractual expectations. This encompasses various elements such as programs, access requirements, third-party audit requirements, and initial and ongoing sampling and microbiological surveillance programs. Jack In The Box conducts both announced and unannounced inspections of approved suppliers' facilities and independently evaluates and tests the products they produce.
If a supplier fails to meet these requirements, Jack In The Box will issue a written notice to terminate their approval. Following this, Jack In The Box will notify approved distributors and may also inform individual franchisees. Franchisees are then obligated to cease selling any products from the unapproved supplier and discontinue purchasing from them. Jack In The Box will then identify an appropriate replacement supplier or product.
This rigorous oversight ensures that all products used in Jack In The Box restaurants meet the company's standards for quality and safety. For a franchisee, this means they must adhere to the approved supplier list and cannot source products independently without prior approval from Jack In The Box. This restriction is significant, as the FDD estimates that a substantial portion of the costs associated with developing and operating a Jack In The Box restaurant are tied to items that must conform to the company's specifications or be purchased from approved suppliers.