If you’re looking for a fast-food chain to franchise that serves a little bit of everything, then Jack in the Box is for you. They’ve got beef and chicken burgers, egg rolls, tacos, chicken teriyaki rice bowls, breakfast and more. And guess what? The concept works with roughly 500 million people visiting Jack in the Box each year.
How much does it cost to open Jack in the Box?
You’ll need a liquid capital of $250,000 and a net worth of $1,500,000. The investment for this food chain is estimated to be $1,651,500 to $2,638,600 and the franchise fee is $50,000.
Are you hyped up to own a Jack in the Box? Read my analysis of this fast-food chains future business prospects including the pros, cons, and whether or not it’s the right franchise for you.
Financial Requirements and Fees
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|Fees / Expenses||Financial Amount|
|Net Worth||$ 1,500,000|
|Total Investment||$1,651,500 to $2,638,600|
The fees and expenses listed above are Jack in the Box’s requirements as stated on their official website. Other fees of note are their royalty and marketing fees that are 5% of gross sales.
The term of agreement to run this franchise is 20 years. You may be able to get a discount if you’re a veteran since Jack in the Box offers an incentive of 25% off on the first unit’s franchise fee. Although this will need to be vetted through the franchising team first.
Average Sales / Revenue per Year
Jack in the Box’s sales in 2020 was $3.673 billion. The company had a 4.8% growth from their previous year’s sales despite the pandemic. A large part of this success was no doubt due to drive-thru orders.
Jack In The Box Franchise Facts
|Total Units||Over 2,200|
|Incorporated Name||Jack in the Box Inc.|
|Industry||Quick Service Restaurant|
|Subsector||Food and Beverage|
In 1951, Robert O. Peterson started Jack in the Box in San Diego, Calif. Peterson was experienced in the fast-food business having owned Topsy’s Drive-In in 1941.
The set up was simple: a single drive-thru window with an intercom system for customers to order. The hamburgers they sold back then were just 18 cents and well known to have a huge jack-in-the-box on their roof with a clown looking over the establishment. Creepy sounding, but the concept worked.
Fast forward to today, Jack in the Box is one of America’s popular fast-food chains with over 2,200 locations in 21 states and Guam. They’ve kept their set-up since they started, which was still offering a drive-thru service since they’ve claimed that about 90% of their 500 million annual customers still choose to take-out or drive-thru when it comes to ordering.
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Convenience is one big factor that drives customers to Jack in the Box. Aside from the drive-thru service, most locations are open 18 to 24 hours daily. They also serve breakfast all day and late-night Munchie Meals that are fully loaded. They’ve also developed a Jack Mobile App where customers can order and pay and then pick up their food either inside the store or via the drive-thru window.
One of the things that make Jack in the Box famous is the variety of menu items. They’re an American fast-food chain yet they have more than just burgers and fries. They have a teriyaki chicken rice bowl and eggrolls. They’re also quite famous for their tacos where you can get two tacos for only 99 cents. I’ve had the tacos more than a few times. They’re not bad if you order a side of ranch and you can’t beat the price.
Another element setting Jack in the Box apart is the marketing. First off, they have a mascot known as Jack Box who has a well-crafted background story from its early beginnings to the most random things he does and can keep tabs on online. The mascot is so popular that the chain has given customers more than 22 million of the iconic Jack Box antenna balls since 1995. Second, they have wacky commercials that have even gone controversial such as Martha Stewart fighting Jack Box and an ad that included sexual innuendo.
But even in the midst of controversy, Jack in the Box continues to win people’s hearts and stomachs. They’re active in the community through the Jack in the Box Foundation. The foundation funds other programs like the Children’s Hospital, Make-A-Wish Foundation, Big Brothers Big Sisters, Jr. Achievement, and March of Dimes.
Currently, Jack in the Box lists the following places as available areas for a new store:
- New Mexico
- North Carolina
- South Carolina
Places where limited franchising is offered are Texas, California, and Guam. Meanwhile, Jack in the Box is looking at the rest of the states not mentioned as their future market. But whether or not these are open and available, you’d have to discuss it with their team. If you want to buy an existing Jack in the Box location, you can check for sale businesses here. You’ll find a variety of locations available for sale.
Currently, Darin Harris serves as Chief Executive Officer (CEO) of Jack in the Box
How Much Does Jack In The Box Make in Profit?
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Jack in the Box reports that they have received net earnings of $35.9 million in the second quarter of 2021. There was also a 10.3% boost in their same-store sales in the third quarter of the same year. If you also take a look at their sales from 2019 to 2020, Jack in the Box grew 4.8%. The future looks bright for this quirky fast-food franchise.
Advantages of a Jack In The Box Franchise
Every business has a set of advantages and challenges. For Jack in the Box, we have here a list of advantages you can look forward to if you become a franchise operator.
One of the things that Jack in the Box takes pride in is their witty marketing ads that manage to capture the audience, their mascot Jack Box included. They’re bold and crazy but that’s why they have a lot of fans coming back to check their new items out. And if it’s not the loyal customers, there are new ones that are intrigued as to what Jack in the Box is all about.
So if you franchise with them, you’ll get crazy cool ads too which will help drive in customers and sales. Make sure to explore the deep catalogue of old ads for this company before joining the team. Make sure you’re good with their sometimes off-color marketing campaigns.
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Jack in the Box’s franchise development team guides you on the journey to franchise a store. As stated on their website, you’ll receive ongoing support for as long as you’re running a location along with research and development, effective technology systems, marketing, and a 24/7 help desk. Jack will be by your side the entire way.
Most of Jack in the Box’s locations are open 24/7 which is convenient when people are looking for food during odd hours of the day. They’re also widely known for their drive-thru which was helpful in the health crisis where some people may not want to eat in a dining room. There’s also an online ordering system and app so consumers can order and pick up food anytime.
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Jack in the Box has a crazy menu. They’ve got burgers, rice, tacos, and salads. That’s a mix of a lot of different things. Even the tiny tacos that they have look so silly but also cute. They also have affordable eats any time of the day. And with a menu like this, it’s not so surprising why people still dig them.
Challenges of a Jack In The Box Franchise
Now for some of Jack in the Box’s challenges that you need to know so you can expect them and brave them head on when you become one of their franchise operators.
They may have a variety of food items but the choices are packed with unhealthy calories. Those Munchie Meals? They’re over 1,700 to 2,030 calories to which a dietician once referred to as a disaster.
But there’s hope yet. You can opt for their salads or you can choose to try their newest item on the menu which is their Unchicken Sandwich, a plant based option for those looking at a healthier meal. While the sandwich is still fried, at least you know Jack in the Box is thinking of ways to integrate healthier items into their menu.
Back in 1993, Jack in the Box was hit with an E. coli outbreak that damaged the chain’s reputation. A reported 73 locations were affected and four people died from this outbreak. Aside from that, Jack in the Box was also associated with using horse meat in 1981 on their tacos and burgers. And while this happened a long time ago, the bad reputation stuck and people still bring it up from time to time.
Yes, Jack in the Box has witty commercials that make bold statements that capture audiences. Some are hilarious and some are just strange. But there are also some people view them as inappropriate. As a franchise owner / operator, you probably won’t have much input into the direction of the marketing campaigns. If you don’t like edgy marketing campaigns, consider an alternative restaurant franchise that plays it safe.
Staffing 24/7 Locations
We are in the midst of a historic labor shortage. This shortage in labor is hitting restaurants and the food service industry particularly hard. To run a Jack in the Box, you’ll need to have enough staff to operate around the clock. This can be challenging as long as the shortage in workers remains.
Is the Jack In The Box Franchise Right For You?
If you’re looking for a fast-food chain that’s been around for years and serves up a wacky sense of humor in addition to a diverse menu, then Jack in the Box could be the right franchise for you. It may not be everyone’s cup of tea. But they have hundreds and millions of customers annually so you know there’s plenty more love than hate for this fast-food restaurant.
What is an alternative Jack in the Box franchise?
One fast-food chain you might want to check out is Wendy’s. They have been serving since 1969 and have grown to over 6,000 locations worldwide. They’re best known for their square burger patties and creamy Frosty.
To franchise Wendy’s you’d need to have a minimum net worth of at least $ 5,000,000 and a minimum liquid asset of $ 2,000,000.
Was this guide helpful enough to get you to sign up for a Jack in the Box franchise? If you’re ready to be a part of this one-of-a-kind fast-food chain, send in your application to them and I sincerely hope you are accepted as one of their franchise operators soon.