What terms and conditions must be included in all third-party leases for a Jack In The Box restaurant?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. If Developer leases the real property for the Developed Restaurant from a third party, Developer must use its best efforts to use Company's standard form of lease addendum. Regardless of whether Company's standard form is used, all third-party leases must include the following terms and conditions:
- (1) Developer may not use the premises for the operation of any business other than a Jack in the Box restaurant.
- (2) The landlord consents to Developer's use of such marks and signage as Company may reasonably require.
- (3) The landlord agrees that whenever it sends any notice, lease amendment or other material document pertaining to the lease or the Premises to Developer, it will simultaneously send a copy to Company.
- (4) Company has the right to enter the premises to make any modification necessary to protect its marks or to cure any default under the lease or the Franchise Agreement, including the right to enter upon expiration to de-identify the premises if Developer fails or refuses to do so.
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, if a developer leases real property for a Jack In The Box restaurant from a third party, they must exert their best effort to use Jack In The Box's standard lease addendum. Regardless of whether the standard form is used, all third-party leases must include specific terms and conditions to protect the brand and ensure operational consistency.
The required terms and conditions in the lease specify that the premises can only be used for a Jack In The Box restaurant. The landlord must consent to the developer's use of Jack In The Box's marks and signage. The landlord must also agree to send copies of any notices, lease amendments, or other important documents related to the lease to Jack In The Box simultaneously as they are sent to the developer. This ensures Jack In The Box is kept informed of all lease-related communications.
Additionally, Jack In The Box has the right to enter the premises to make modifications to protect its marks or to address any defaults under the lease or Franchise Agreement. This includes the right to de-identify the premises if the developer fails to do so upon expiration. Jack In The Box also has the right to cure any default under the lease and subsequently assume the lease and sublease the premises for the remainder of the lease term. A Memorandum of Lease must be recorded in the county where the restaurant is located, providing public notice of Jack In The Box's interest in the property. Finally, the landlord must provide a non-disturbance agreement to the developer from any mortgage holder or master lessor, ensuring the franchisee's use and possession of the premises will not be disturbed as long as the franchisee is not in default.