Jack in the Box is a fast-food restaurant franchise that offers specialty sandwiches, tacos, bowls, sides, hamburgers, french fries, salads, and drinks. Tacos, the famous “Jumbo Jack” burger, and the waffle breakfast sandwich are among their most popular menu items. In the fast-food industry, Jack in the Box competes with big brands like McDonald’s, Burger King, and Wendy’s, as well as stores like Jack in the Box.
Jack in the Box Statistics
Jack in the Box Inc. owns and operates quick-service restaurants under the Jack in the Box brand. It is known to have operated and franchised more or about 2,245 Jack in the Box restaurants as of April 15, 2018, predominantly in the southern and western United States, as well as Guam.
Most of their locations are headquartered in the United States, and more than 85% are franchises. The Jack in the Box system as a whole brings in about $3.5 billion annually.
What is Jack in the Box?
In 1951, Robert O. Peterson established a drive-thru burger restaurant in San Diego with a big jack-in-the-box clown on the roof, launching the Jack in the Box chain. After word spread about the company, it decided to expand outside of California in 1960.
Furthermore, the brand began franchising in 1982, more than twenty years later. Jack in the Box is a fast-food restaurant chain in the United States best known for its funny mascot character, Jack the Clown. The brand provides a wide variety of culinary options, such as hamburgers, breakfast, salads, sides, chicken sandwiches, tacos, shakes, and a lot more.
If you want to invest in a fabulous restaurant that gives you a fun opportunity to bring food culture to your community, Jack in the Box can be considered the perfect place to go.
Is Jack in the Box Franchise Opportunity?
Jack in the Box has a strong franchise opportunity because it is a well-known brand with a solid menu. Jack in the Box is popular with young and old, and the menu is diverse enough to appeal to a variety of customers. The company is also well-funded, and the franchisor provides a comprehensive training program. The franchise opportunity is attractive because of Jack in the Box’s low start-up costs and the company’s strong
Facts That Nobody Told You About Jack in the Box
- The tacos provided by Jack in the Box have not changed for more than 50 years.
- Drive-thru was pioneered by its founder.
- The company got sick of clowns by 1980 and ended up blowing them.
- Jack, the pitchman, CEO, and fiction founder is a real character who debuted in 1995.
- There is a reason behind the weird marks on their tacos.
- They have memorabilia in their fancy museum.
- There was a Jack in the Box Boy band once.
- Dennis Hopper worked at Jack in the Box.
|Jack in the Box Franchise Information|
|Industry Type||Food Franchise Opportunities|
|Sub Category||Burger Franchise Opportunties|
|Company Name||Jack in the Box Inc.|
|Founder/Management Head||Robert Oscar Peterson|
|Franchise Expansion Plan||The United States of America|
|Number of Units||2220|
|Number of Franchise Units|
|Social Media Handles|
|Company Office location||San Diego, California|
Jack in the Box Franchise Requirements
For prospective franchisees, Jack in the Box fails to specify any particular prerequisites. However, they have to pass through the five-step approval procedure mentioned below:
It includes a review of the franchise disclosure document, preliminary interview, and preliminary review of the credit and background of franchisees.
It includes a closer look at financial data, a restaurant preview, and a competency interview.
- Due diligence
It includes a business plan, real estate information, and a review of tax returns.
It includes training for 10 weeks along with a panel interview with the leadership team of Jack in the Box.
It incorporates orientation and the final paperwork.
How much does a Jack in the Box franchise cost?
The Jack in the Box franchise fee goes up to $50,000 with the cost ranging between $1,651,500 and $2,638,600. Additionally, a potential franchise must have a net worth of $1,500,000 and liquid cash worth $250,000-$750,000 with him.
How much does it cost to franchise a Jack in the Box in the United States?
|Jack in the Box Franchise Initial and On-going Franchise Cost|
|Jack in the Box Franchise Fee||$ 50,000|
|Jack in the Box Franchise Cost||$1,697,000-$2,694,600|
|Term of Agreement||20 years|
|Is the franchise term renewable?||No|
Jack in the Box Training to Franchises
According to the franchisor’s discretion, the new franchisee training program lasts 10 to 14 weeks and is held in San Diego, Dallas, or Los Angeles. Before being permitted to run a franchised restaurant, franchisees must successfully finish the entire training course.
In addition, the franchisor is required to give training to one of the franchisee’s staff members so they can become qualified franchise restaurant managers before the business opens. San Diego, California, or, in some cases, a location near the franchised restaurant, might serve as the training location.
Franchisees and their licensed franchised restaurant managers may be required to complete a refresher or additional training, including recertification training, at the request of the franchisor.
Jack in the Box Operations to Franchises
New franchisees have the option of opening a restaurant that has just been built out or one that is already up and running. The majority of Jack in the Box locations provide 20 to 100 diners with sitting in addition to a drive-through option. The franchisor tends to occasionally permit unconventional restaurant formats.
How is Jack in the Box Territory Granted to Franchises
Only specified restaurant locations are eligible for franchising from the franchisor. Franchisees are not given a territory that is all their own, they may have to contend with rival franchises, the franchisor’s owned stores, other avenues of distribution, or other brands under its control.
Franchisees are authorized to build a single Jack in the Box restaurant inside the development area with a single-unit development agreement, which must be signed for each location. A single site or a bigger area that has been agreed upon and specified in the agreement may qualify as the development area within that agreement.
To operate and open any new Jack in the Box restaurants within the development area, the franchisor will not give new franchises to an entity or person other than the franchisee.
What is Jack in the Box Term of Agreement and Renewal?
The franchise has no rights to renewal during the initial 20-year duration. Based on various variables, the franchisor may, in its sole discretion, elect to issue the franchisee a re-written new franchise.
Does Jack in the Box provide Financial Assistance to Franchises?
In relation to the opening or running of new franchised restaurants, the franchisor fails to provide funding frequently. Under certain conditions, the franchisor may provide build-to-suit agreements to franchisees to help them fulfill their construction responsibilities.
In additional restricted circumstances, under the current development incentive program, franchisees may also elect an option whereby the franchisor or one of its affiliates will loan them $150,000 at zero percent interest after breaking ground to be used toward development costs. This option is only available if franchisees open the restaurant according to the time frames provided in the Development Agreement and certain other requirements are successfully met.
If franchisees ask for assistance finding a financial resource, the franchisor could try to find one for them; there will not be any fees or other rewards given to the franchisor for doing this.
Pros & Cons of owning a Jack in the Box
- Menu innovation
- Witty advertising
- Menu Variety
- Drive-thru convenience
- All five dayparts
- Prime market available
- Digital guest experience
- Unhealthy menu
- Bad rep
- Staffing 24*7 locations
How much does Jack in the Box franchise owners make?
As per 2020 fdd, Jack in the Box franchise owners’ revenue is an average of $1,575,246. This range starts from $1,047,473 for those who made more than $2,230,468.The majority of Jack in the Box franchise owners (77%) earned between $50,000 and $99,999.
I will estimate the Jack in the Box franchise profit and years to recoup the investment (ROI).
|AUV||Estimated Annual Profit (12.5%)||Estimated Annual Profit (15%)||Estimated Annual Profit (18%)|
|$ 1,575,246||$ 196,906||$ 236,289||$ 283,545|
|Recoup $2,145,050||11 years||9 years||7.5 years|
What is Jack in the Box franchise profit?
According to Jack in the Box, they reported net earnings of $35.9 million during the second quarter of 2021. In the third quarter of the same year, their same-store sales increased by 10.3%. Additionally, if a person examines their sales from 2019 to 2020, they have ended up experiencing a growth of 4.8%; this unique fast-food chain indubitably has a promising future.
The estimated Jack in the box franchise profit is in the range of $ 190,000 to $ 285,000 and it will take 7 to 12 years to recoup the investment. According to industry standards, it will take a very long time to get a return on the franchise cost.
What is Jack in the Box franchise reviews?
Jack in the Box can be the ideal franchise for a person if he is searching for a long-standing fast-food business that offers a distinctive sense of humor in addition to a wide selection of food. It might not appeal to everyone, but since they receive hundreds and millions of visitors each year, he can be sure that there is much more love than dislike for this fast-food establishment.
Jack in the Box Franchise Rankings
- They have ranked #306 under the Franchise 500 Ranking in 2022..
- It ranked #8 under the Top HamBurger Franchises in 2022.
Franchise Deck Analysis and Overview
Jack in the Box has been in business for over 50 years. The company was founded in 1951 specialises in burgers and fries. The company has over 2200 locations in the United States and Canada.
The Jack in the Box is a quick-service restaurant. The menu features burgers and fries. The company also offers a variety of other menus.
Although the franchise owners are making revenue of $1.1 to $2.3 million, profits are not enough to recoup the investment within 5 years. So I don’t recommend this opportunity to everyone. It is advisable to you that if you own the real estate, you can increase your business and property valuation.
Is the Jack in the Box Profit Worth the Franchise Cost?
This Jack in the box franchise’s investment is not worth the cost and profit.
Based on the average total sales from 2019 and 2020 being $1,521,743 and the typical valuation multiple for the industry of 0.34, the franchise would most likely sell for $517,393 when the owners decide to sell it. Only roughly 24% of the $2,145,050 midpoint investment is represented by this.
Jack in the Box Franchise Sucess and Failure Rate
In the last year, the fast food sector generated $278.6 billion in revenue, and over the next five years, it is predicted to rise by 3.2%.
In 2017 and 2018, they reduced their company-owned restaurants from 394 to 157, they were franchised.
|Competition Analysis of Jack in the Box|
|Jack in the Box||Cost to Franchise||Franchisee Fees||Royalty + Ad fees||Expected Profit||Recoup of Capital||FD Rating|
|Sonic Franchise||$1,242,200 to $3,537,700||$45,000||5%3.25%||13%||14.5 years||3.5/5.0|
|Burger King Franchise||$1,790,800 – $4,194,700||$50,000|
|16%||8 to 12 years||3.8/5.0|
|Five Guys Franchise||$306,200 to $641,250.||$25,000||6%||$136,344 to $272,688||4 to 6 years||4.1/5.0|
|Wendy’s franchise||$2-$3.5 million||$40,000||4%||$ 330490 to $ 440653||8 to 12 Years|
|Whataburger franchise||$0.5 to $1.5 million||$59,500||8%||$94,000 to $122,600||6 to 9 years||3.9/5.0|
The Franchise Deck rating for the Jack franchise is 3.7/5.0.
Conclusion: Is jack in the box franchise worth the cost?
Restaurant ownership is no joke. Along with dealing with the general public, you also need to hire workers, pay for new equipment, maintain a wonderful menu, and provide amazing customer service to keep consumers coming back for more. It is a thriving $1 billion industry that has grown even more after the COVID-19 outbreak.
By thoroughly cleaning everything, leaving enough space between customers in indoor settings, and providing delivery services and contactless payments, restaurants are now focusing on making consumers feel protected; there is no difference with Jack in the Box as a franchising brand too.
While Jack in the Box franchises is appealing due to their large revenues and stable profit margins, the cost of the initial investment can prove to be relatively expensive. And they are sold for much less than the original investment. The initial investment is often not recovered after almost ten years. Additionally, there are not more outlets overall. The chain prides itself on offering a fantastic drive-thru experience, take-out orders, and drive-thru for a sizable portion of the revenue earned by Jack in the Box.
You can explore other burger franchise opportunities categories can look at
- Whataburger Franchise
- Mcdonald’s Franchise
- Burger King Franchise
- Burger Village Franchise
- Hardee’s franchise
- 5 guys franchise
- Wayback burger franchise
- Wendy’s Franchise
- In and Out franchise
- Sonic Franchise
- BurgerFi Franchise
Frequently Asked Questions (FAQs)
- Is the Jack in the Box franchise profitable?
Yes, as mentioned above, Jack in the Box franchises are profitable with an annual profit of $35.9 million in the second quarter of 2021.
- Can you make money owning a Jack in the Box?
Yes, a potential franchisee can make money owning a Jack in the Box franchises.
- Is Jack in the Box a franchise?
Yes, Jack in the Box is a franchising company.
- How much is Jack in the Box franchise?
The fee for Jack in the Box franchises is $50,000 and the initial investment is $1,651,500- $2,638,600
- How does Jack in the Box franchises make money?
In addition to hamburgers, Jack in the Box’s menu currently offers a wide range of items, including breakfast, salads, sides, chicken sandwiches, tacos, shakes, etc to make money.
Jack in the Box is a popular fast food franchise, known for its delicious hamburgers and tacos.
The franchise was founded in 1951 in San Diego, California, making it one of the oldest fast food chains in the United States.
Jack in the Box is most famous for its signature Jumbo Jack hamburger, which is made with two beef patties, melted cheese, and a special secret sauce.
The franchise also serves a wide variety of other items such as tacos, chicken sandwiches, salads, and breakfast items.
Jack in the Box has over 2,200 locations in the United States and is expanding into new markets.
The franchise is popular with people of all ages and has a wide variety of menu options to choose from.
Jack in the Box is committed to providing their customers with high-quality food and excellent customer service.
The franchise also offers catering services, allowing customers to enjoy the taste of Jack in the Box in the comfort of their own home or office.
Jack in the Box takes great pride in its commitment to sustainability and is working to reduce its environmental impact.
Jack in the Box has an extensive loyalty program and rewards customers with exclusive offers and discounts.
The franchise is also active in the community and supports a variety of local charities and organizations.
Jack in the Box is constantly innovating and introducing new and exciting menu items to keep customers coming back for more.
The franchise has been recognized for its commitment to quality and customer satisfaction and has won several awards over the years.
Jack in the Box is a great franchise to visit for a quick and delicious meal that won’t break the bank.