What is the term length for a Jack In The Box nontraditional franchise license?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Nontraditional License Agreement | Summary | |
|---|---|---|---|
| a. | Term of the franchise | § 1 | 20 year term |
| b. | Renewal or extension of the term | Not Applicable | No right of renewal. |
| c. | Requirements for you to renew or extend | Not Applicable | No right of renewal. We may in our sole discretion decide to grant you a new license (rewrite) based on your past performance and potential, your representation of the brand to your customers and community, payment history and overall financial condition, the location and operations of the restaurant, and the needs of the system as a whole, among other things. If offered, a rewrite may be for twenty years or shorter, and you may have to satisfy certain conditions as part of the rewrite commitment, including improving the restaurant to meet current standards, executing a General Release in favor of the Company (see Exhibit K), signing a new License Agreement and paying a new franchise fee, and amending your other existing License Agreements to reflect current provisions. The general release is subject to restrictions in applicable state law. The new license agreement may contain materially different terms and conditions from the original franchise agreement. These conditions may require significant financial contributions. |
| d. | Termination by you | § 15 | If the Facility requests that you cease operating the nontraditional restaurant, you may terminate by providing Company sixty (60) days' written notice. Additionally, you may terminate under any grounds permitted by law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 70–81)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, the term length for a nontraditional franchise license is 20 years, as detailed in Section 1 of the Nontraditional License Agreement. However, there is no right to renew or extend the term. Instead, Jack In The Box may, at its sole discretion, offer a new license agreement, or "rewrite," based on several factors. These factors include the franchisee's past performance, representation of the brand, payment history, financial condition, the location and operations of the restaurant, and the overall needs of the Jack In The Box system.
If Jack In The Box offers a rewrite, it may be for a term of 20 years or less. The franchisee may need to meet certain conditions, such as improving the restaurant to meet current standards, signing a General Release in favor of the company, signing a new License Agreement, paying a new franchise fee, and amending other existing License Agreements to reflect current provisions. The new license agreement may also contain materially different terms and conditions from the original franchise agreement, potentially requiring significant financial contributions from the franchisee.
If the facility where the nontraditional restaurant is located requests that the franchisee cease operations, the franchisee can terminate the agreement by providing Jack In The Box with 60 days' written notice. The franchisee can also terminate the agreement under any grounds permitted by law. This lack of a guaranteed renewal contrasts with some franchise systems that offer franchisees a right to renew their agreements, providing more certainty for their long-term investment.