What was the total member's deficit for Jack In The Box as of January 21, 2024?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
ets obtained in exchange for operating lease obligations | | 27,681 | $ | 35,275 | | |
CONSOLIDATED STATEMENTS OF MEMBER'S DEFICIT (In thousands) (Unaudited)
| Member's ntributions, Net | Retained Earnings | Т | otal Member's Deficit | |
|---|---|---|---|---|
| 16-Weeks Ended January 19, 2025 | ||||
| Balance at September 29, 2024 | $ (2,549,913) | $ 1,071,912 | $ | (1,478,001) |
| Member's contributions | 20,446 | _ | 20,446 | |
| Net earnings | _ | 59,807 | 59,807 | |
| Distributions to affiliates | (78,348) | _ | (78,348) | |
| Balance at January 19, 2025 | $ (2,607,815) | $ 1,131,719 | $ | (1,476,096) |
| 16-Weeks Ended January 21, 2024 | ||||
| Balance at October 1, 2023 | $ (2,372,299) | $ 869,029 | $ | (1,503,270) |
| Member's contributions | 23,552 | _ | 23,552 | |
| Net earnings |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 93–94)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, the total member's deficit as of January 21, 2024, was approximately $1,500,735. This figure represents the cumulative deficit, reflecting the accumulated losses and distributions exceeding earnings and contributions up to that date. This information is derived from the consolidated financial statements, which, although unaudited, provide a snapshot of the company's financial position at that time.
For a prospective Jack In The Box franchisee, understanding the member's deficit is crucial as it reflects the financial health and stability of the parent company, Jack in the Box SPV Guarantor, LLC. A significant deficit might raise concerns about the company's ability to support its franchisees, invest in growth, or meet its financial obligations. However, it's important to consider this figure in the context of the company's overall financial performance, including revenues, profitability, and cash flow, as well as any strategic plans to address the deficit.
It is also important to note that the provided financial statements are unaudited. The FDD explicitly advises prospective franchisees to be aware that these figures have not been reviewed or validated by a certified public accountant. Therefore, while the information provides an overview, potential franchisees should conduct their own due diligence, including consulting with financial advisors, to assess the financial viability of investing in a Jack In The Box franchise. They should also request and review the audited financial statements for a more accurate and reliable assessment of the company's financial condition.