Franchisor Stories
Jack in the Box, a long-established quick-service restaurant brand, continues to expand with franchise opportunities, offering a drive-thru-focused model and strong unit-level economics.
Based in San Diego, Jack in the Box is a quick-service restaurant (QSR) burger franchise with a menu that features a wide variety of food in addition to hamburgers, including chicken sandwiches, breakfast, tacos, salads, shakes and sides.
In 1951, Robert O. Peterson opened a drive-thru burger restaurant with a large jack-in-the-box clown on the roof in San Diego. While the drive-through concept was not new, Jack in the Box was the first major chain to prioritize it, introducing a two-way intercom system to streamline ordering.
Peterson formed Foodmaker, Inc. as a holding company for Jack in the Box in 1960. At this time, all Jack in the Box locations—over 180, mainly in California and the Southwest—were company-owned. The company was eventually sold to Ralston Purina in the ‘70s.
In 1982, Jack in the Box began franchising. Over the preceding decades, Jack in the Box has experienced various ups and downs when it comes to growth. For example, its expansion into East Coast markets was halted several times in the ‘80s. In the 2010s, Jack in the Box completely stopped franchise growth for nearly a decade.
In July 2018, the National Jack in the Box Franchisee Association, which represents the owners of about 2,000 of the chain's 2,240 restaurants, voted "no confidence" in the company's chief executive officer, Leonard "Lenny" Comma, and called for him to resign.
In 2021, Jack in the Box announced it would be relaunching franchising efforts with a renewed focus on unit-level economics and a new low-cost and drive-thru only restaurant prototype.
Today, Jack in the Box has over 2,200 locations across the United States.
The chain emphasizes its great drive-thru experience, and the large majority of Jack in the Box business comes from drive-thru and takeout orders. New franchisees can choose to franchise a newly constructed restaurant or an already built location. Most Jack in the Box restaurants offer 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. The brand also rolled out a new low-cost and drive-thru only prototype to align with post-COVID consumer trends.
Below represents the historical gross sales for franchised restaurants in the continental U.S. for the 12-month period ended September 30, 2023.
| Average Gross Sales by Tier | High Gross Sales | Median Gross Sales | Low Gross Sales | |
| Top | $2,776,551 | $5,955,582 | $2,653,566 | $2,256,136 |
| Middle | $1,945,979 | $2,255,031 | $1,932,109 | $1,657,774 |
| Bottom | $1,267,011 | $1,657,631 | $1,309,502 | $382,796 |
| Total | $1,996,940 | $5,955,582 | $1,934,323 | $382,796 |
The total estimated initial investment ranges from $1,810,600 to $4,207,500. This breaks down as follows:
| Type Of Expenditure | Min | Max |
| Initial Franchise Fee | $50,000 | $50,000 |
| Fee For Trade Area Survey Analysis | $0 | $7,500 |
| Land | Not included | Not included |
| 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 | $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 |
Jack in the Box charges an initial franchise fee of $50,000 for each franchised restaurant.
Notable exceptions include:
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