Jack in the Box Franchise FDD, Profits, Costs & Fees (2024)
Jack in the Box is a leading fast-food chain founded in 1951 and began franchising in 1982. It is headquartered in San Diego, California, and operates under Different Rules, LLC. The brand offers a wide menu, including hamburgers, specialty sandwiches, fries, tacos, salads, and beverages.
Jack in the Box stands out by offering franchises for existing restaurants and locations franchisees can build themselves. A key differentiator is its 24/7 operating model, serving customers at all hours. This sets it apart from competitors with limited hours.
The round-the-clock service boosts sales throughout the day, particularly during breakfast and late-night hours. With a diverse menu beyond standard fast-food items, including tacos and all-day breakfast, Jack in the Box attracts a wide customer base.
Jack in the Box Franchise Stats
Jack in the Box
Number of units: 2,043 franchises
Initial investment: $1,811,000 - $4,208,000
Average revenue (AUV): $1,934,000
Initial Investment
How much does it cost to start a Jack in the Box franchise? It costs on average between $1,811,000 – $4,208,000 to start a Jack in the Box franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial franchise fee | $50,000 |
| Fee for trade area survey analysis | $0 – $7,500 |
| Fee for architect/engineering services | $43,900 – $215,700 |
| Environmental assessment | $2,500 – $34,000 |
| On-site improvements | $337,100 – $825,200 |
| Building Improvements | $625,900 – $1,425,400 |
| Furniture, fixtures and equipment | $399,200 – $967,100 |
| IT equipment and installation | $45,000 – $60,000 |
| POS Software | $1,000 |
| Initial inventory | $12,000 – $20,000 |
| Pre-opening training and inventory expenses | $110,000 – $115,000 |
| Pre-opening additional funds | $14,000 – $17,000 |
| Uniforms | $3,000 – $5,000 |
| Operating cash | $1,200 – $3,000 |
| Business licenses and utility deposits | $500 – $3,000 |
| Additional funds (3 months) | $165,300 – $458,600 |
| Total estimated cost for prototypical restaurant | $1,811,000 – $4,208,000 |
Average Revenue (AUV)
How much revenue can you make with a Jack in the Box franchise? A Jack in the Box franchised restaurant makes on average $1,934,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,548,000 yearly revenue for similar burger franchises. Below are 10 Jack in the Box competitors as a comparison:
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Jack in the Box Franchise Disclosure Document
Frequently Asked Questions
How many Jack in the Box locations are there?
As of the most recent data, Jack in the Box operates over 2,100 locations. Out of these, 171 are company-owned, and approximately 2,036 are franchised. This distribution reflects a strong preference for franchised units within the brand’s business model, accounting for the majority of its locations.
What is the total investment required to open a Jack in the Box franchise?
The total investment required to open a Jack in the Box franchise ranges from $1,811,000 to $4,208,000.
What are the ongoing fees for a Jack in the Box franchise?
Jack in the Box franchisees are required to pay a royalty fee of 5% on gross sales. Additionally, there is a marketing fee of approximately 5% of gross sales, which covers national advertising and promotional efforts. These ongoing fees are part of maintaining the brand’s consistency and support for franchise growth.
What are the financial requirements to become a Jack in the Box franchisee?
To become a Jack in the Box franchisee, you need to have a minimum net worth of $1.5 million and at least $500,000 in liquid capital. These requirements ensure that franchisees have the financial stability and resources necessary to open and operate a Jack in the Box restaurant successfully.
How much can a Jack in the Box franchise owner expect to earn?
The average gross sales for a Jack in the Box franchise are approximately $1.93 million per location. Assuming a 15% operating profit margin, $1.93 million yearly revenue can result in $289,500 EBITDA annually.
Who owns Jack in the Box?
Jack in the Box is a publicly traded company, listed on the NASDAQ stock exchange under the ticker symbol “JACK.” It is not owned by a single entity but by shareholders who hold its publicly traded stock. The company operates independently with a board of directors and executive leadership team overseeing its operations.
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