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Jack in the Box Inc. is sharing significant financial benefits with those who enter into a minimum three-unit franchise development agreement.
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's being open, Jack in the Box will offer new franchisees discounted royalty fees beginning at 1 percent the first year, 2 percent the second, 3 percent the third year, 4 percent the fourth year, and 5 percent for the remainder of the agreement beginning in the fifth year.
With an average unit volume of $1.8 million, the reduced royalty fees can result in up to $180,000 in savings in the first five years of operation.
Darin Harris, CEO of Jack in the Box, emphasized that they look forward to continuing to move the needle with their franchise opportunity and introducing the brand to new markets across the US.
The multi-unit incentive program comes as Jack in the Box recently reported strong growth in the first two quarters of its fiscal year 2022, including 30 franchise agreements representing 106 future restaurants.
Five new locations opened in the second quarter of this fiscal year, bringing the total number of restaurants to over 2,200 across 21 states and Guam.
The brand’s revenue increased 19.8 percent on a two-year-over-year basis,
