Jack in the Box Inc. today disclosed the details of a refranchising transaction that was completed in May. TLIG Restaurants LLC acquired 18 Jack in the Box restaurants in the Beaumont, Texas, market.
To date in the fourth quarter of the company's fiscal 2013, which ends Sept. 29, Jack in the Box Inc. has completed the sale of 27 additional Jack in the Box restaurants, with transactions to refranchise approximately 29 other restaurants expected to close by fiscal year end, according to a company press release.
These transactions reflect the company's strategic initiative to expand franchising and franchise ownership in the Jack in the Box system. With the sale of the Beaumont market, the Jack in the Box system is nearly 77 percent franchised. Upon the expected completion of fourth quarter transactions, franchise ownership will rise to more than 79 percent.
The company is nearing its goal of franchise ownership in the 80 to 85 percent range, which it expects to achieve by the end of fiscal 2014, according to the release.
The company is currently seeking experienced, multi-unit restaurant operators to refranchise certain company markets in the southeast and Midwest. In Tulsa, Kansas City, Indianapolis and Cincinnati, new franchisees can acquire up to 10 restaurants that recently opened or are under development, then further develop the market with royalty and franchise fee incentives.
Other markets approved for franchise development include Louisville, Cleveland, Wichita, Omaha, Little Rock, Fayetteville and Champaign.
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