Growth Club
1851 Growth Club
Franchise Deep Dive: Jack in the Box Franchise Costs, Fees, Profit and Data
The beloved burger chain recently relaunched franchising efforts after a decade-long hiatus with a renewed focus on unit-level economics and a drive-thru-only restaurant prototype.
LAST UPDATED: March 15, 2023
FRANCHISE WEBSITE: https://www.jackintheboxfranchising.com/
NUMBER OF LOCATIONS: 2,208
REPORTED COST TO GET IN: $1,765,500 - $2,761,600
REPORTED ROI (Item 19): $1,837,053 (AUV)
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.
How Many Jack in the Box Locations Are There?
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 innovated a two-way intercom system, the first major chain to use an intercom and the first to focus on drive-through.
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 were 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 2,208 locations across 23 U.S. states, with more than 85% of them franchised
What Is the Jack in the Box Business Model?
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. Last year, the brand also rolled out a new low-cost and drive-thru only prototype to align with post-COVID consumer trends.
How Much Can Jack in the Box Franchise Owners Make?
The average unit volume (AUV) of Jack in the Box is $1,837,053, as outlined in Item 19 of the Franchise Disclosure Document. This number comes from historical gross sales at franchised restaurants in the continental USA for the 12-month period between September 30, 2021 and September 30, 2022.
How Much Does It Cost to Open a Jack in the Box?
The estimated initial investment for a Jack in the Box franchise is $1,765,500 to $2,761,600, excluding land, financing and certain other costs.
| Type of Expenditure | Estimated Amount or Estimated Low-High Range | |
| Low | High | |
| Initial Franchise Fee | 0 | 50,000 |
| Fee for Trade Area Survey Analysis | 4,500 (plus all expenses) | 7,000 (plus all expenses) |
| Land | Not included | |
| Fee for Architect/Engineering Services | 49,000 | 166,000 |
| Environmental Assessment | 2,500 | 34,000 |
| On-Site Improvements | 286,000 | 507,000 |
| Building Improvements | 611,000 | 785,000 |
| Furniture, Fixtures and Equipment | 408,000 | 469,000 |
| IT Equipment and Installation | 45,000 | 60,000 |
| Computer-Related Services and Licensing | 1,000 | 1,000 |
| Initial Inventory | 12,000 | 20,000 |
| Pre-opening Training and Inventory Expenses | 50,000 | 55,000 |
| Pre-Opening Additional Funds | 14,000 | 17,000 |
| Uniforms | 1,500 | 3,000 |
| Operating cash | 1,200 | 3,000 |
| Business Licenses and Utility Deposits | 500 | 3,000 |
| Additional Funds (Three Months) | 165,300 | 458,600 |
| Total Estimated Cost for Prototypical MK9 or MK10-Style Restaurant (Excluding Land, Financing and Certain Other Costs) | 1,651,500 | 2,638,600 |
| Development Fee | 60,000 | 60,000 |
| Professional Fee | 1,000 | 5,000 |
What Is the Franchise Fee for Jack in the Box?
The Initial Franchise Fee at Jack in the Box is $50,000 for each franchised restaurant, plus any tax or other fee imposed upon the Company due to the collection of the Initial Franchise Fee. Notable exceptions include:
- If your franchise term is for less than the standard 20 years, the Initial Franchise Fee is $2,500 for each year or partial year exceeding six months.
- If you will be offering a nontraditional location, the Initial Franchise Fee is $25,000 for each unit, plus any taxes and fees imposed on the Company due to collection of the Initial Franchise Fee.
Who’s On Jack in the Box’s Leadership Team?
- Tim Mullan—Executive Vice President, Chief Financial Officer.
- Darin Harris—Chief Executive Officer, Director.
- Tony Darden—Chief Operating Officer
- Sarah Super—Senior Vice President, Chief Legal & Risk Officer, Corporate Secretary
- Steven Piano—Senior Vice President, Chief People Officer
- Dean Gordon—Senior Vice President, Chief Supply Chain Officer
- Tim Linderman—Senior Vice President, Chief Development Officer
- Doug Cook—Senior Vice President, Chief Technology Officer
What Helpful Articles Can I Read to Learn More About Jack in the Box?
- 3 Reasons to Diversify with Jack in the Box
- How Much Does a Jack in the Box Franchise Cost?
- 5 Benefits of Multi-Unit Franchising with Jack in the Box
- Largest Jack in the Box Franchisee Acquires Nick the Greek
- Jack in the Box Franchisees Request CEO Change
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