News

Jack in the Box franchisee group butts heads again with leadership

April 5, 2019

The National Jack in the Box Franchisee Association has again butted heads with corporate leadership, this time over the company's formation of a Franchisee Advisory Council. The franchisee group has the exact same corporate-franchisee communication mission as the association's Strategic Leadership Council. The head of the franchisee association told the San Diego Union Tribune, where the chain is based, "It feels like gut punch."

Mike Norwich made that comment as both head of the group and a franchisee with 14 Texas Jack in the Box stores. The franchisee association itself represents owners of approximately 90 percent of the 2,100 franchise stores. He said that the group's Strategic Leadership Council was formed long ago to resolve a previous franchisee/corporate dispute and that the company's formation of a similar group is an attempt to marginalize the National Franchisee Association.

For its part, Jack in the Box corporate leadership refuted those claims.

"Any suggestion that the formation of the Franchisee Advisory Council was intended to silence the National Franchisee Association is simply not true," a company statement released to the newspaper said.

Last year, the franchisee association entered a no-confidence vote in Jack in the Box management, calling for a replacement of current CEO Leonard Comma. It has also requested a board seat and sued the company over remodeling cost allocations and access to marketing plans. As we reported last December, Jack in the Box hired advisers to create come up with solutions to some of its problems, including selling the chain.