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Jack in the Box Franchise Formats Offered

New Jack in the Box franchisees can choose to franchise a newly constructed restaurant or an already built location. Most Jack in the Box restaurants offers both drive-through service as well as seating for anywhere from 20 to 100 customers. However, from time to time, the franchisor will allow nontraditional restaurant formats.

Jack in the Box Franchise Opportunities - History

Robert O. Peterson opened a hamburger stand in 1951 with the business concept of a drive-thru-focused food service. The stand, which he called Jack in the Box, was the first major quick-service restaurant chain to adopt the intercom order system, a convenient method of ordering for drive-thru customers. By 1960, the chain had grown to over 180 locations, primarily in California and the Southwest. The company was eventually sold to Ralston Purina in the '70s, and in 1982, Jack in the Box began franchising. In the ensuing years, the restaurant's menu was updated to offer a more diverse food selection, introducing items such as salads, chicken sandwiches, and curly fries. Eastern expansion across the United States became possible in the 2000s, and eventually, Jack in the Box opened its first international unit in Guam.

How Much Does It Cost To Own A Jack in the Box Franchise

Initial Investment

The estimated initial investment required to open a Jack In The Box franchised restaurant is $1.5 million to $3.3 million, excluding the cost of procuring any real estate and related costs.

Initial Jack in the Box Franchise Fees

To open a traditional Jack in the Box location, new Jack in the Box franchisees must pay an initial franchise fee of $50,000 for every unit they intend to develop, payable when the franchise agreement is signed. In the case of nontraditional Jack in the Box restaurants, new Jack in the Box franchisees must pay an initial franchise fee of $25,000 per unit.

In addition to initial franchise fees, Jack in the Box franchisees may be required to pay a $25,000 development fee for each location they intend to develop.

Ongoing Royalties and Program Contributions

Jack in the Box franchisees must pay an ongoing 5% royalty fee on monthly gross sales, though this royalty rate may be increased or decreased in certain circumstances.

Jack in the Box franchisees must also pay a quarterly royalty fee for games and devices (e.g., ATMs, slot machines, arcade boxes, etc.) equal to 40% of the net revenues generated by these devices.

In addition, franchisees must pay a marketing fee of 5% of gross sales toward the franchise system's marketing program.

Jack in the Box Franchise System Size and Composition

Jack in the Box has over 2,250 locations, with more than 85 percent of them franchised and nearly all based within the United States. Overall, the Jack in the Box system generates around $3.5 billion of annual revenue.

Jack in the Box also has a wholly owned subsidiary, Qdoba Restaurant Corporation, which operates over 700 Qdoba Mexican Eats and Qdoba Mexican Grill restaurants across North America. About 55% of these units are corporate run and around 45% are franchised.