by Jerome Espinosa Baladad

Created on: July 12, 2010

In your travels to the West Coast, you may have been to one of the many restaurants of Jack in the Box. Being among the major players in the quick serve restaurant (QSR) industry, Jack in the Box competes strongly with other brands including McDonalds, Kentucky Fried Chicken, Wendy’s, and Taco Bell. Its current 2,100 locations have sprouted over the many years this leading food chain has been around (since 1951). It even operates and franchises the Qdoba Mexican Grill chain (that has locations, too, in the East Coast), another brand that differentiates from competition as it highlights its being an “artisanal Mexican kitchen.” Jack in the Box differentiates from competition via its pioneering offerings and services that have become staples of the QSR industry – it’s known to have introduced and developed drive-through service for customers wanting to get food without leaving their cars. Its use of very creative advertising campaigns have been acknowledged for their unusual inclusion of stories on corporate-like characters not typically associated with the marketing image most players would like to offer to the public in the fast-food business.

You’ll observe that locations of Jack in the Box are almost all stand-alone that also provide for drive-thru set-up for its targeted customers. A few locations are attached to filling stations, or found in shopping malls. Its pages online on franchising say that it now seeks “traditional drive-thru restaurant locations;” it even encourages real estate owners who think their properties are good for a Jack in the Box restaurant to “contact the appropriate Real Estate Consultant or Manager” if they’re willing to sell their property/ies so they can be developed accordingly. Also, the company specifies that it seeks to focus its efforts on franchising development in the United States for the time being.

Jack in the Box has prequalification criteria for its prospective franchisees. The criteria are all items in the registration form a prospective franchisee will have to complete and submit to qualify to join a forum. Dubbed “Executive Briefing and Exchange,” this exclusive forum covers the franchising process of the business, set in a “candid, collaborative, and peer-level on the “re-franchising program, tour area Jack in Box restaurants and explore ways to work together.” They include:
1)    Preference for those who have at least 5 years worth of multi-unit QSR management experience
2)    Preference for those with experience in opening new restaurants or retail businesses that allowed them to participate actively in real estate site selection, construction, regional marketing, hiring and training new employees
3)    Preference for those with liquid assets of $750,000 and with $1,500,000 amount of net worth, combining those participating in the franchise
4)    They have to be not restricted by any kind of non-compete agreement disallowing them to own or operate a QSR like Jack in the Box.
5)    Prospective franchisees have to possess the desire to eventually own and develop 5 units of the Jack-in-the-Box-QSR.

Subject to change, award process and fees are currently pegged at:
1)    5% of gross sales for the royalty fee
2)    5% of gross sales as a Marketing Fund Contribution
3)    $50,000 per location (with a 20-year term) for the Initial Franchise Fee
4)    $25,000 per location for Area Development Fee

Check more about the franchise information by clicking on this link.

 

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