Here's How Much It Really Costs To Open A Jack In The Box Franchise
If you grew up eating tacos and Sourdough Patty Melts from Jack in the Box, count yourself lucky. Thousands of Americans are not familiar with Jack in the Box, or its famous mascot, Jack, if they live in the northern half of the U.S., as most of the company's 2,200-plus locations are based in the west and south.
With only 21 states currently serving as home to Jack in the Box franchisees, there's plenty of opportunity for more, according to Jack in the Box. Plus, the departure of former company CEO Lenny Comma in December 2019, apparently opened the door for additional franchises, according to Restaurant Business. New CEO, Darin Harris, could signal another boost in franchise growth for Jack in the Box. Harris is the former vice president of franchise and corporate development for Captain D's and senior vice president of franchising for Arby's. During a recent Jack in the Box earnings call, Harris said that the fast-food chain had the best same-store sales quarter in five years, and franchises, which currently make up 94 percent of stores, increased 6.9 percent (via QSR). So, how can you become one of those franchisees?
Here's what it takes to become a Jack in the Box franchisee
If you have a passion for the restaurant industry, real estate development experience, a minimum of five years of multi-unit restaurant operations experience (within the last seven years), and a minimum net worth of $1.5 million, you're on the right track to becoming a Jack in the Box franchisee (via Jack in the Box). The company also asks for liquid assets of at least $250,000 if you plan to open one to two units, or $750,000 if you'd like five restaurants.
The total estimated cost, including the $50,000 franchise fee, to open a typical Jack in the Box (excluding land), is between $1,651,500 and $2,638,000. This does not include your annual five percent gross sales royalty, marketing fees that are five percent of gross sales, or any additional costs that may pop up, such as IT fees, etc. (via Franchise Direct). Not ready to make the leap? Tuck into some newly reintroduced spicy chicken strips, and think it over.