What was the value of the goodwill acquired by Jack In The Box?

According to the 2025 Franchise Disclosure Document, Jack In The Box's total acquisition date goodwill was $319,722,000. This amount is the sum of the goodwill attributed to the Del Taco brand ($230,722,000) and the Jack In The Box brand ($89,000,000). The acquisition of Del Taco occurred on March 8, 2022, as part of Jack In The Box's strategy to expand and grow. Goodwill, in this context, represents the intangible assets acquired during the purchase of Del Taco, such as brand reputation, customer relationships, and intellectual property, that are not separately identifiable but contribute to the overall value of the acquired business.

For a prospective franchisee, understanding the value of goodwill is crucial because it reflects the strength and recognition of the brands they are investing in. A strong brand reputation can lead to increased customer traffic and sales, which can positively impact the franchisee's profitability. However, it's important to note that goodwill is an intangible asset and its value can fluctuate based on various factors, including market conditions, brand performance, and consumer preferences. Therefore, franchisees should continuously monitor the performance of the brand and adapt their strategies to maintain and enhance the brand's goodwill in their local market.

The FDD also mentions that in 2024, Jack In The Box recognized a goodwill impairment of $162,624,000. Goodwill impairment occurs when the fair value of an acquired company or asset decreases below its carrying value. This can happen due to various factors, such as poor performance of the acquired business, changes in market conditions, or a decline in brand reputation. Franchisees should be aware of the potential for goodwill impairment and its impact on the overall financial health of the company. While the initial goodwill from the Del Taco acquisition was significant, the impairment recognized in 2024 highlights the dynamic nature of intangible assets and the importance of ongoing brand management and performance monitoring.

In summary, the $319,722,000 in total acquisition date goodwill, comprised of $230,722,000 for Del Taco and $89,000,000 for Jack in the Box, reflects the value of intangible assets acquired by Jack In The Box. However, the subsequent goodwill impairment of $162,624,000 in 2024 demonstrates the potential risks and fluctuations associated with these intangible assets. Prospective franchisees should carefully consider these factors when evaluating the franchise opportunity and assess the franchisor's strategies for maintaining and enhancing brand value.