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Jack in the Box Offers Multi-Unit Incentive Program for Franchisees to Bolster Unit Growth Potential
Rhea-AI Impact
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Rhea-AI Sentiment
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Rhea-AI Summary
Jack in the Box (NASDAQ: JACK) has launched a franchise incentive program, targeting multi-unit agreements. The program offers lowered royalty fees for new franchisees who sign at least three agreements by March 2023. This could save franchisees up to $180,000 over five years. The company reported 30 agreements for 106 future locations and a revenue increase of 19.8% year-over-year. With over 2,200 restaurants, Jack in the Box aims to enhance support for franchisees and expand its market presence.
Positive
Incentive program offering discounted royalty fees starting at 1% in the first year.
Potential savings of up to $180,000 over five years for franchisees.
30 franchise agreements for 106 future restaurants in the first two quarters of 2022.
19.8% revenue increase year-over-year, showcasing robust business performance.
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None.
Iconic Brand with Unmatched Innovation and Personality Provides Royalty Relief for Multi-Unit Deals Signed by End of March 2023
SAN DIEGO--(BUSINESS WIRE)--
As part of its aggressive franchise growth strategy, Jack in the Box Inc. (NASDAQ: JACK) is sharing an incentive program with multi-unit franchisees that offers significant financial benefits to those who enter into a minimum three-unit development agreement.
“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,” said Tim Linderman, Chief Development Officer of Jack in the Box. “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,” said Darin Harris, CEO of Jack in the Box. “I look forward to continuing to move the needle with our franchise opportunity and introduce Jack to new markets across the country.”
The multi-unit incentive program comes as Jack in the Box recently reported solid growth from the first two quarters of its 2022 fiscal year, including a total of 30 franchise agreements representing 106 future restaurants. Five new units opened in Q2 of this fiscal year, adding to the more than 2,200 restaurants across 21 states and Guam. Beyond sustaining steady quarter to quarter franchise expansion, the brand has demonstrated remarkable resiliency in store performance, with revenue increases of 19.8% on a two-year-over-year basis, furthering the appeal of its franchise opportunity.
Learn more about available franchise opportunities with Jack in the Box by visiting JackintheBoxFranchising.com.
About Jack in the Box
Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 21 states and Guam.
What is the new multi-unit franchise incentive program by Jack in the Box?
Jack in the Box has introduced a franchise incentive program offering discounted royalty fees for multi-unit franchisees who sign at least three agreements by March 2023.
How much can franchisees save with the new royalty fee structure?
Franchisees can save up to $180,000 over the first five years of operation through the new royalty fee structure.
What were Jack in the Box's recent growth metrics?
In the first two quarters of fiscal 2022, Jack in the Box secured 30 franchise agreements for 106 future locations and reported a revenue increase of 19.8% year-over-year.
When do franchisees need to sign agreements to qualify for the incentive?
Franchisees must sign their agreements by March 2023 to qualify for the incentive program.
