Under what conditions might Jack In The Box grant a new development agreement?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary | |
|---|---|---|---|
| a. | Term of the franchise | § 4 | The term of Development Agreement expires on the last required opening date. |
| b. | Renewal or extension of the term | Not Applicable | No right of renewal. We may in our sole discretion decide to grant you a new development agreement based on your compliance with the development obligations, your representation of the brand to your customers and community, your financial condition, the status of your existing franchised restaurants, and the needs of the system as a whole, among other things. If offered, we will agree to a new development schedule and territory, and you will have to satisfy certain conditions as part of the new development agreement commitment, including executing a General Release in favor of the Company (see Exhibit K), signing a new Development Agreement and paying any fees we require. The general release is subject to restrictions in applicable state law. The new development agreement may contain materially different terms and conditions from the original franchise agreement. |
| c. | Requirements for you to renew or extend | Not Applicable | No right of renewal. See above. |
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, there is no right to renew a development agreement. However, Jack In The Box may, at its sole discretion, grant a new development agreement. This decision is based on several factors related to the franchisee's performance and the overall needs of the Jack In The Box system.
Specifically, Jack In The Box will consider the franchisee's compliance with their existing development obligations, how well they represent the Jack In The Box brand to customers and the community, and their current financial condition. The status of the franchisee's existing franchised restaurants also plays a role in the decision. Finally, Jack In The Box will assess the needs of the entire franchise system when deciding whether to offer a new development agreement.
If Jack In The Box offers a new development agreement, it will include a new development schedule and territory. The franchisee must also satisfy certain conditions, including executing a General Release in favor of Jack In The Box, signing a new Development Agreement, and paying any required fees. The new development agreement may have terms and conditions that are significantly different from the original agreement. This means that a franchisee cannot assume the renewal terms will be similar to their previous agreement.