The initial investment required to open a Jack In The Box franchised restaurant is $1.5 million to $3.3 million, excluding the cost of real estate acquisition.
Franchisees are required to have equity of $1.5 million, of which $250,000 must be liquid capital. That is, they must be assets that can be converted into cash quickly.
This is requested by the franchise to verify that they have the financial capacity to face the project.
To open a traditional Jack in the Box location, new franchisees must pay an initial franchise fee of $50,000 for each location they intend to develop, payable when the franchise agreement is signed, Franchise Help reported.
For non-traditional Jack in the Box restaurants, new franchisees must pay an initial franchise fee of $25,000 per location.
In addition to initial franchise fees, franchisees may be required to pay a $25,000 development fee for each location they intend to develop.
Jack in the Box franchisees are also required to pay an ongoing 5% royalty fee on gross monthly sales.
In addition, franchisees must pay a quarterly royalty fee for games and devices (eg, ATMs, slot machines, arcades, etc.) equal to 40% of the net revenue generated by these devices.
In addition, franchisees must pay a marketing fee of 5% of gross sales for the franchise system’s advertising program.
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