Jack in the Box

The franchise fee of $50,000 is higher than the typical range for QSR franchises. What specific services, training, or support justify this premium fee structure?

With 3 litigation cases currently pending, what are the general nature and status of these disputes, and how might they affect franchisee operations or obligations?

The 5.0% advertising fund rate is above the typical 2.0-4.0% range for QSR franchises. How is this fund allocated and what specific marketing benefits do franchisees receive?

Your initial contract term is 20 years, significantly longer than the typical 10-15 year range. What is the rationale for this extended term, and what flexibility exists if a franchisee's circumstances change after 10-15 years?

The franchise offers no renewal options and requires a new franchise fee upon potential rewrite. Can you explain the circumstances under which a rewrite would be offered versus denied, and what building improvements would be required?

Why is the transfer fee only $2,500 when the typical range is $5,000-$15,000? Does this low fee reflect a streamlined approval process, or are there additional costs or hurdles for potential buyers?

With a non-compete of only 1 year (vs. the typical 2 years), what restrictions specifically apply to exiting franchisees regarding operating similar concepts, and in what geographic radius?

The territory is non-exclusive with no encroachment protection. What safeguards exist to prevent the franchisor from placing additional Jack in the Box locations near an existing franchisee's territory?

Your sales performance metrics are notably above typical ranges. What percentage of your 2,190 current units actually achieve the median sales of $1,928,638, and what is the range of performance among underperforming units?

Can you provide details on the 39 terminations in 2022 and the 5 terminations in 2024? Were these franchisor-initiated or franchisee-initiated, and what were the primary reasons?

With 94 unit transfers in 2024 (4.3% transfer rate), are franchisees proactively selling due to profitability concerns, or does this reflect normal portfolio management among existing operators?

The Investment Costs score of 0 is far below the typical 69-78 range. What initial capital requirements exist beyond the $50,000 franchise fee, and how is total startup cost calculated?

Regarding the 5 litigation cases over 3 years, can you disclose the party types (franchisee disputes, employment, regulatory, supplier) and whether any resulted in judgments against the franchisor?

The operational control section requires purchasing only from company-approved suppliers and mentions maximum price-setting by the company. How are supplier prices determined, and what appeal process exists if franchisees believe prices are unreasonable?

Your renewal policy grants no automatic right of renewal and allows the franchisor sole discretion on rewrite. In practice, what percentage of franchisees at term-end are offered renewals versus denial, and on what basis?

The personal guarantee requirement covers 'all obligations.' Does this extend to debts incurred by the franchisor on behalf of the franchise, and what is the maximum liability exposure for a franchisee?

The $5,000,000 combined single limit insurance requirement is substantial. Is this typical across your system, and are franchisees seeing insurance cost increases due to industry trends?

With no territory exclusivity and 5 supplier restrictions across multiple categories, what flexibility exists for a franchisee to negotiate sourcing or operational exceptions based on local market conditions?

The royalty rate of 5.0% plus 5.0% ad fund equals 10% ongoing fees. How does profitability look at different sales volume levels, particularly for units below the median $1,928,638?