Jack in the Box Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Jack in the Box is a quick-service chain serving burgers, tacos, chicken, and all-day breakfast, largely via drive-thru. Franchisees operate restaurants managing kitchen and counter staff, food safety, and local marketing.
FranchiseVerdict summary · 2026
A Jack in the Box franchise requires a total initial investment of $1.9M – $4.0M, including a $25K – $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.9M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 46 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $1.9M – $4.0M
- 99th pct Service Resta…
- Avg gross sales
- $1.9M
- 29th pct Service Resta…
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 2,136
- 94th pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.9M – $4.0M including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.9M/year (median $1.8M).
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better). SBA loan charge-off rate of 0.0% across 46 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Different Rules, LLC
- Parent company
- Jack in the Box SPV Guarantor, LLC
- Ultimate parent
- Jack in the Box Inc.
- Predecessor
- Jack in the Box Inc. (JIB)
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 9357 Spectrum Center Blvd, San Diego, California 92123
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $1.0B
- vs $1.1B prior year
Affiliated brands
- does not operate the type of business you will operate
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Lance Tucker
- Headquarters
- CA
- Founded
- 2019
- FDD year
- 2026
- States available
- 22
Can you afford it, and what does the money buy?
Entry cost runs 352% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Grand Opening Advertising and Promotion Feenot refundable | $0 | $10K | |
| Fee for trade area survey analysis | $0 | $8K | |
| Land | — | — | |
| Fee for architect/engineering services | $44K | $216K | |
| Environmental assessment | $3K | $34K | |
| On-site improvements | $337K | $825K | |
| Building Improvements | $626K | $1.3M | |
| Furniture, fixtures and equipment | $499K | $967K | |
| IT equipment and installation | $45K | $60K | |
| Initial inventory | $12K | $20K | |
| Pre-opening training and inventory expenses | $110K | $115K | |
| Pre-opening additional funds | $14K | $17K | |
| Uniforms | $3K | $5K | |
| Operating cash | $1K | $3K | |
| Business licenses and utility deposits | $500 | $3K | |
| Additional funds (3 months) | $165K | $459K | |
| Development Feenot refundable | $60K | $60K | |
| Professional Fee | $1K | $5K | |
| Remaining Franchise Feenot refundable | $40K | $40K | |
| Total initial investment | $2.0M | $4.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.9M – $4.0M
- Bottom third — review vs category
- Liquid capital req'd
- $165K – $459K
- Bottom third — review vs category
- Franchise fee
- $25K – $50K
- Bottom third — review vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 5.0% of gross sales |
| Technology fee | $425 |
| Transfer fee | $3K |
| Renewal fee | $50K |
| Inventory (initial) | $12K – $20K |
| Total fee load | 10.0% of rev |
What do units actually make?
Average unit sales run 58% above the quick-service restaurants norm.
Source: FDD 2026 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$230K
12.0% margin
Unlevered ROIC
7%
EBITDA / total invested capital
Payback
14.3 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Jack in the Box unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
7%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Jack in the Box units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.9M
on $9.6M purchase
Total debt
$7.7M
SBA $4.8M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $1.9M
- Per unit, per year
- Median gross sales
- $1.8M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales with cost tables
- Sample size
- 1,754 outlets
- vs category median 20 · large
- Range (low → high)
- $624K→$5.9M
- Cohort dispersion (min → max)
- Quartile band
- $1.6M→$2.1M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 782 Quick-Service Restaurants brands
Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.9M/year in gross sales. Revenue-to-investment ratio: 0.6x.
Fee burden
Total ongoing fee load of 10.0% — above the Quick-Service Restaurants average of 7.9%.
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -2.8% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Jack in the Box Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2,136
- Opened
- 20
- Last reporting year
- Closed
- 75
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.8%
- Company-owned
- 151
- Corporate units in the system
- % franchised
- 93%
- vs corporate-owned
- Net growth (3-yr)
- -2.8%
- Net unit change over 3 years
- 3-yr CAGR
- -2.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 20
- Closed (3yr)
- 75
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 21
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 0.4%
- Franchisor-initiated terminations
- Ceased ops
- 0.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 46
- Loan volume
- $31.2M
- Median loan
- $543K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 14
- Defaults
- 0
- Typical loan rate
- 7.5%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 117
- 1.4 per loan
- Lender concentration
- 25%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Top lenders financing Jack in the Box franchisees
Showing 3 of 14 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Jack in the Box's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 3-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 46 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Jack in the Box presents elevated risk due to shrinking unit count, non-disclosure of net income figures, multiple active litigations reflecting franchisor-franchisee friction, and going concern warning at corporate level.
Litigation (Item 3)
Pending: Philippines case (won at trial, concluded); Marilyn Garner trustee (appellate ruling in company favor, TX Supreme Court petition pending); AJP/NHG (WA, March 2025); Gulf Coast Jacks (CA, Dec 2025); JIB v Wazny/Chopra (marketing fee collection). Concluded: Rehkopf gift card (settled 2016); NFA (settled 2020); San-Tex Restaurant (settled 2021); Aslam Group (settled 2021, JIB paid $5.55M); Ibrahim Investment Corp (settled 2021, JIB paid $25K).
Largest disclosed settlement: $5,550,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Officer disclosure only: Ryan Ostrom (Chief Brand Officer) and Steven Piano (Chief People Officer) were employees of GNC Holdings, Inc. when it filed Chapter 11 on June 23, 2020. GNC Holdings is unrelated to the franchisor.
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 75 / 100 verdict
- 01MINORDeclining unit count (-2.7% YoY) indicates system contraction and potential market saturation or franchisee dissatisfaction
- 02MEDNo disclosed average net income despite $1.91M-$4.04M investment creates opacity around actual profitability and ROI
- 03HIGHMultiple active litigation cases across multiple states (Philippines, Texas, Washington) plus historical pattern of franchisee disputes suggests systemic franchisor-franchisee relationship issues
- 04HIGHGoing Concern status = False (company reported going concern doubts), indicating financial instability at corporate level
- 05HIGHHeavy litigation history including class actions (gift cards), franchisee association suits, and multi-state disputes suggests pattern of enforcement/transparency problems
- 06MED5% royalty on disclosed $1.91M average revenue = ~$95,668 annual royalty plus operating costs makes profitability questionable without disclosed net income
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 0 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 0 days |
| Termination groundsℹ | 8 |
| Curable defaultsℹ | 10 |
| Mandatory arbitration | No |
| Arbitration location | San Diego, California |
| Jury trial waiver | Yes |
| Governing law | CA |
| Litigation count | 10 |
View Item 3 litigation summary
Pending: Philippines case (won at trial, concluded); Marilyn Garner trustee (appellate ruling in company favor, TX Supreme Court petition pending); AJP/NHG (WA, March 2025); Gulf Coast Jacks (CA, Dec 2025); JIB v Wazny/Chopra (marketing fee collection). Concluded: Rehkopf gift card (settled 2016); NFA (settled 2020); San-Tex Restaurant (settled 2021); Aslam Group (settled 2021, JIB paid $5.55M); Ibrahim Investment Corp (settled 2021, JIB paid $25K).
Items 10, 11
Training & Operations
- Classroom training
- 80 hrs
- On-the-job training
- 320 hrs
- Training location
- San Diego, California; Dallas, Texas; or Los Angeles, California
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- Franchisee (with Company approval); Company may assist
- Franchisor financing
- Offered
- Item 10
- POS system
- Company-specified POS system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Company-specified POS system
Item 20 · call current owners
Franchisee Contacts
2,007 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Jack in the Box · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Jack in the Box franchise?
The total investment to open a Jack in the Box franchise ranges from $1.9M – $4.0M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Jack in the Box franchise owners earn?
According to Item 19 of the Jack in the Box FDD, the average gross sales per unit is $1.9M. The median is $1.8M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Jack in the Box FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Jack in the Box FDD and qualifies whose outlets they describe.
What is Jack in the Box's franchise failure rate?
Based on SBA 7(a) loan data, Jack in the Box has a charge-off rate of 0.0% across 46 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Jack in the Box franchise locations are there?
As of their most recent FDD filing, Jack in the Box has 2,136 total units in the United States, including 1,985 franchised units and 151 company-owned units. 20 new units were opened in the latest reporting year.
Is Jack in the Box a good franchise to buy?
FranchiseVerdict rates Jack in the Box as a A-grade franchise with a verdict score of 75 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.