Company: JACK
Filing Date: 2025-02-25
Form Type: 10-Q
Source: 0000807882-25-000016
Chunk: 26

Company: JACK IN THE BOX INC
Filing Date: 2025-02-25
Form: 10-Q
Item: Item 1
Chunk 26
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 and development fees received from franchisees for new restaurant openings or new franchise terms, which are recognized over the franchise term. The Company classifies these contract liabilities as “Accrued liabilities” and “Other long-term liabilities” in our condensed consolidated balance sheets.A summary of significant changes in contract liabilities is presented below (in thousands):Sixteen Weeks EndedJanuary 19,2025January 21,2024Deferred franchise and development fees at beginning of period$51,990 $50,474 Revenue recognized (1,808)(1,988)Additions 1,050 1,597 Deferred franchise and development fees at end of period$51,232 $50,083 As of January 19, 2025, approximately $9.0 million of development fees related to unopened restaurants are included in deferred revenue. Timing of revenue recognition for development fees related to unopened restaurants is dependent upon the timing of restaurant openings and are recognized over the franchise term at the date of opening.The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied as of January 19, 2025 (in thousands):Remainder of 2025$3,676 20265,020 20274,692 20284,076 20293,452 Thereafter21,291 $42,207 

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JACK IN THE BOX INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Company has applied the optional exemption, as provided for under ASC Topic 606, Revenue from Contracts with Customers, which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty.

3.SUMMARY OF REFRANCHISINGS AND ASSETS HELD FOR SALE

Refranchisings — The following table summarizes the number of restaurants sold to franchisees and the loss or gain recognized (dollars in thousands):Sixteen Weeks EndedJanuary 19,2025January 21,2024Restaurants sold to Del Taco franchisees13 — Proceeds from the sale of company-operated restaurants (1)$5,712 $1,739 Net assets sold (primarily property and equipment)(1,794)— Goodwill related to the sale of company-operated restaurants(461)— Franchise fees(364)— Lease termination(217)— Other (2)(