When is the Royalty for Games and Devices due to Jack In The Box, and how should the payment be made?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
For Gross Sales from Games and Devices resulting from the operation or conduct of games or coin or token-operated devices such as pay telephones; cash, credit or debit machines (including automated teller machines); newspaper stands; and any type of vending machines, including, without limitation, electronic devices of all types (collectively, "Games and Devices"), Franchisee agrees to pay to Company, during the term of this Agreement, a royalty of forty percent (40%) of Gross Sales from Games and Devices (the "Royalty for Games and Devices"). The Royalty for Games and Devices is net of any tax, including excise tax, or other fee imposed upon Company due to the collection of the Royalty for Games and Devices, and shall be paid monthly on the fifteenth (15th) day following receipt by Franchisee of the said Gross Sales. Each payment shall be made payable to Company or Company's designee.
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, the Royalty for Games and Devices is due monthly. Specifically, it must be paid by the fifteenth (15th) day following the franchisee's receipt of Gross Sales from Games and Devices. This royalty is calculated as forty percent (40%) of Gross Sales from Games and Devices.
Gross Sales from Games and Devices includes revenue from the operation or conduct of games or coin or token-operated devices. Examples include pay telephones, cash, credit or debit machines (including ATMs), newspaper stands, and any type of vending machines, including electronic devices. The Royalty for Games and Devices is net of any tax, including excise tax, or other fee imposed upon the company due to the collection of the Royalty for Games and Devices.
Each payment for the Royalty for Games and Devices must be made payable to Jack In The Box or the company's designee. This means franchisees must ensure their payments are directed to the correct entity as specified by Jack In The Box to avoid any payment issues or potential defaults.
It is important for prospective Jack In The Box franchisees to understand these payment terms and ensure they have systems in place to accurately track and remit the Royalty for Games and Devices on time to avoid penalties or other consequences outlined in the franchise agreement.