What are some of the requirements that a prospective purchaser must meet to be approved as a Jack In The Box franchisee?

Following Site Approval by Company of any proposed restaurant location, Developer shall enter into the then current form of the Jack in the Box Franchise Agreement used by Company to grant franchises to operate Jack in the Box restaurants in the state in which the specified Developed Restaurant is located ("Franchise Agreement"), and shall pay the "Franchise Fee" (as defined in the Franchise Agreement).

Nothing in this Agreement shall be construed as obligating Company to enter into a Franchise Agreement with respect to any restaurant if Developer has not obtained Expansion Approval, Site Approval and Lease Approval in accordance with Section 8 and/or if Developer is otherwise in breach of any of its obligations under this Agreement.

Developer agrees not to open a Jack in the Box restaurant for business until all of Developer's obligations under this Agreement have been fulfilled.

J. Personnel of the Franchised Restaurant

At all times, the Franchised Restaurant must be under the control of an individual who has been designated by Franchisee as, and approved by Company in writing to be, the operator of the Franchised Restaurant ("Operator"). The Operator (or, if applicable, a Designated Market Operator, as described below) shall use best and continuing efforts to promote and develop the business at the Franchised Restaurant. The Operator shall have and shall maintain a percentage ownership interest in any partnership, corporation, or other legally formed entity to which the franchise is assigned in accordance with the terms of this Agreement; the amount of the required ownership interest is subject to the prior written approval of Company. Alternatively, and only with the prior written approval of Company, the Operator may be employed by Franchisee under a contract through which Operator will acquire that ownership interest within five years of the date of employment, and shall maintain that ownership interest while acting as Operator.

Developer agrees to cause the Operator to maintain actual involvement in the operations of the Developed Restaurants and to devote the best efforts of Developer to the restaurant operations and the success thereof.

3. COVENANTS AND RESTRICTIONS ON OTHER BUSINESS INTERESTS

• 3.1. Franchisee must devote best efforts to the development, management and operation of the Franchised Business.
• 3.2. Owner acknowledges that Franchisee and Owner will receive valuable specialized training and/or confidential information, including without limitation, information regarding the development, operational, sales, promotional and marketing methods and techniques of Company and the System. During the term of any Development Agreement or any Franchise Agreement between Company and Franchisee, except as otherwise approved in writing by Company, Owner may not, either directly or indirectly, for him/herself, or through, on behalf of, or in conjunction with any person, persons, partnership or corporation:
• 3.2.1. Divert or attempt to divert any business or customer of the franchised business to any competitor, by direct or indirect inducement or otherwise; or
• 3.2.2. Do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Company's proprietary marks and the System.
• 3.3. During the term of any Development Agreement or any Franchise Agreement between Company and Franchisee, Owner may not either directly or indirectly, for him/herself, or through, on behalf of, or in conjunction with any person, firm, partnership, corporation or other entity, own, maintain, operate, engage in, or have any interest in any restaurant business (i) whose format is similar to the format employed by the JACK IN THE BOX System at that time (currently, the JACK IN THE BOX System operates in a quick service format, but Company may change that format at any time, and (ii) where 20% or more of the sales of which are (or are likely to be) comprised of the kinds of products that are designated by Company as Core Menu Items of JACK IN THE BOX® restaurants at that time. (Currently, hamburgers, specialty sandwiches and tacos are designated as Core Menu Items of JACK IN THE BOX restaurants, but Company may designate different or additional products as Core Menu Items at any time.).

Source: Item 23 — RECEIPT (FDD pages 94–634)