Does Jack In The Box use franchise brokers to assist in selling franchises?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
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- RISK FACTOR. Use of Franchise Brokers. The franchisor uses the services of a franchise broker to assist it in selling franchises. The franchise brokers are employees of our parent company JACK IN THE BOX INC., but are considered franchise brokers because they are not employed by the franchisor. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. Do not rely only on the information provided by a franchise broker about a franchise. Do your own investigation by contacting the franchisor's current and former franchisees to ask them about their experience with the franchisor.
Source: Item 22 — CONTRACTS (FDD page 94)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, Jack In The Box uses franchise brokers to assist in selling franchises. The franchise brokers are employees of Jack In The Box's parent company, JACK IN THE BOX INC., but are considered franchise brokers because they are not employed by the franchisor. These brokers represent Jack In The Box and are paid a fee for referring prospects or selling the franchise.
For prospective franchisees, this means that you may encounter a franchise broker during the sales process. It's important to understand that these brokers represent Jack In The Box's interests, not yours. While they can provide information, you should not rely solely on what they tell you.
Jack In The Box recommends that prospective franchisees conduct their own thorough investigation. This includes contacting current and former Jack In The Box franchisees to get their perspectives on the franchise system and their experiences with the franchisor. This independent verification is a crucial step in making an informed decision about investing in a Jack In The Box franchise.