For a Jack In The Box Virginia Development Agreement, when is the Development Fee due?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
atement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- To the extent this Amendment is deemed to be inconsistent with any terms or conditions of the Agreement, the terms of this Amendment shall govern.
DIFFERENT RULES, LLC LICENSEE
VIRGINIA DEVELOPMENT AGREEMENT AMENDMENT (SINGLE UNIT)
In recognition of the requirements of the Virginia Retail Franchising Act, Virginia Code sections 13, 1-557 et seq., the attached JACK IN THE BOX DEVELOPMENT AGREEMENT (the "Agreement") is supplemented as follows:
- The following is added to the end of Section 5 of the Agreement:
Notwithstanding the foregoing, Company will defer payment of the Development Fee until the Restaurant that you develop under this Agreement opens for business. Upon the opening of the Restaurant, Developer shall pay to Company the Development Fee.
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- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- To the extent this Amendment is deemed to be inconsistent with any terms or conditions of the Agreement, the terms of this Amendment shall govern.
DIFFERENT RULES, LLC DEVELOPER
VIRGINIA DEVELOPMENT AGREEMENT AMENDMENT (MULTI-UNIT)
In recognition of the requirements of the Virginia Retail Franchising Act, Virginia Code sections 13, 1-557 et seq., the attached JACK IN THE BOX DEVELOPMENT AGREEMENT (the "Agreement") is supplemented as follows:
- The following is added to the end of Section 5 of the Agreement:
Notwithstanding the foregoing, Company will defer payment of the Development Fee until the first Restaurant that you develop under this Agreement opens for business. Upon the opening of the first Restaurant, Developer shall pay to Company the Development Fee.
Source: Item 22 — CONTRACTS (FDD page 94)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, for a Virginia Development Agreement, the Development Fee is deferred until the restaurant opens for business. Specifically, for a single-unit Virginia Development Agreement, the Development Fee is due upon the opening of the restaurant you develop. For a multi-unit Virginia Development Agreement, the Development Fee is deferred until the first restaurant you develop opens for business, at which point the Development Fee is due.
This deferral of the Development Fee until the restaurant opening is a notable benefit for franchisees in Virginia. It reduces the initial financial burden and aligns the payment with the commencement of business operations. This arrangement is facilitated by the Virginia Retail Franchising Act, which necessitates this amendment to the standard Jack In The Box Development Agreement.
It is important to note that this deferral specifically applies to the Development Fee. Other fees or costs associated with establishing the franchise may have different payment schedules. Prospective franchisees should carefully review the entire Franchise Disclosure Document and related agreements to understand all financial obligations and their respective due dates. Consulting with a franchise attorney or financial advisor is recommended to fully assess the financial implications of the franchise investment.