Franchising

Jack in the Box creates incentive program for multi-unit franchisees

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August 17, 2022

Jack in the Box has created an incentive program for multi-unit franchisees offering financial benefits to those who enter into a minimum three-unit development agreement, according to a press release.

"We have a clear vision for growth, and offering this industry-leading incentive to new and existing franchisees moves Jack in the Box to the top of the list for QSR opportunities," Tim Linderman, chief development officer of Jack in the Box, said in the release. "The more we're able to support our multi-unit operators, the better the Jack in the Box franchise system becomes overall."

The financial incentives of the program focus on discounted royalty fees for new franchisees who maintain development compliance and sign at least three franchise agreements by March 2023. For the first five years of the unit being open, Jack in the Box will offer discounted royalty fees for new franchisees, starting at 1% the first year, 2% the second, 3% the third year, 4% the fourth year and then 5% for the remainder of the agreement starting in the fifth year. With an average unit volume topping $1.8 million, the discounted royalty fees can result in savings of up to $180,000 in the first five years of operation.

"As we onboard additional talented multi-unit franchisees to join the Jack in the Box franchise family, we have to separate ourselves from the pack and support our franchisees in their formative years. With this aggressive program in place, it is clear more than ever that Jack in the Box has a commitment to supporting our franchisees," Darin Harris, CEO of Jack in the Box, said in the release. "I look forward to continuing to move the needle with our franchise opportunity and introduce Jack to new markets across the country."

Jack in the Box operates more than 2,200 restaurants in 21 states and Guam.