What are the specific requirements for a Jack In The Box franchisee's balance sheet?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
Attached hereto as Exhibit A are the audited consolidated financial statements of our parent company, Jack in the Box SPV Guarantor, LLC and subsidiaries ("SPV"), as
of September 29, 2024 and October 1, 2023, the related consolidated statements of earnings, member's deficit, and cash flows for each of the fifty-two week periods ended September 29, 2024, October 1, 2023 and October 2, 2022, and the unaudited consolidated statements as of January 19, 2025. Under the Guaranty of Performance (included in Exhibit A), SPV has absolutely and unconditionally guaranteed our duties and obligations under the Franchise Agreement.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 93–94)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the provided excerpts do not contain the specific requirements or criteria for a franchisee's balance sheet for Jack In The Box. The FDD does include the consolidated balance sheets for Jack in the Box SPV Guarantor, LLC and subsidiaries as of September 29, 2024, and October 1, 2023, as well as unaudited consolidated financial statements as of January 19, 2025. These financial statements are exhibits to the FDD. The FDD also includes discussion of accounting practices, revenue recognition, and treatment of receivables from franchisees. However, these sections focus on the company's financial reporting, not on requirements for franchisees.
To fully understand the financial requirements for franchisees, it is important to consult Item 7, "Initial Investment," and Item 22, "Contracts." These items will likely outline the required initial investment and the specific obligations of the franchisee, which would provide insight into the necessary financial resources and ongoing financial health that Jack In The Box expects of its franchisees.
To obtain the specific balance sheet requirements for a Jack In The Box franchisee, a prospective franchisee should directly ask the franchisor about the minimum required assets, liabilities, and net worth. Further inquiry should be made into any specific financial ratios or metrics that Jack In The Box uses to evaluate the financial stability and capability of its franchisees.