JACK IN THE BOX

Item 7 outlines initial investments from $1,909,500 to $4,041,500 for new builds, well above many fast-food peers due to buildout and equipment demands, with a $50,000 franchise fee. Ongoing fees stack up at 5% royalty, 5% brand/ad fund, plus $350-500 monthly technology, $280-369 POS software, and $226-247 other software—pushing total outflows higher than category norms around 4-6% combined royalty/marketing. Item 19 shines with average gross revenue of $1,913,335 and median $1,830,083 across units, but the 0% EBITDA margin and flat $135,847 estimated profit signal razor-thin operator returns after expenses, royalties, and labor in high-cost markets.

System metrics reveal contraction from 2,040 total locations in 2024 to 1,985 franchised in 2025 (-3%), despite 34 projected new units and 21 transfers, suggesting maturing saturation or economic pressures. Only 4 SBA loans average $2.1 million each, low volume hinting at financing hurdles for the steep entry. Litigation flags termination disputes, fee collections, cannibalization claims, and marketing access issues, alongside confirmed bankruptcy history—red flags for due diligence on support and expansion viability. For deep-pocketed operators eyeing volume-driven fast food, the revenue potential tempts, but contraction and profitability squeezes warrant modeling local demographics against these FDD realities.