Company: JACK
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0000807882-25-000072
Chunk: 67

Company: JACK IN THE BOX INC
Filing Date: 2025-11-19
Form: 10-K
Item: Item 7
Chunk 67
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24.4% in 2025 from 23.3% a year ago primarily due to sales deleverage as well as higher costs for IT, utilities, maintenance, and other operating costs including delivery fees.

31

Del Taco Franchise Operations

The following table presents franchise revenues and costs in each period and other information we believe is useful in analyzing the change in franchise operating results (dollars in thousands):

20252024Franchise rental revenues$35,908$28,201Royalties32,37231,714Franchise fees and other2,1321,077Franchise royalties and other34,50432,791Franchise contributions for advertising and other services30,30730,915Total franchise revenues$100,719$91,907Franchise occupancy expenses $35,175$27,948Franchise support and other costs6,4914,551Franchise advertising and other services expenses32,17233,667Total franchise costs$73,838$66,166Franchise costs as a percentage of total franchise revenues73.3 %72.0 %Average number of franchise restaurants457429Franchised restaurant sales$708,208$674,804Franchised restaurant AUVs$1,549$1,573Royalties as a percentage of total franchised restaurant sales4.6 %4.7 %

Franchise rental revenues increased $7.7 million, or 27.3% in 2025 compared to the prior year, primarily due to higher rental income and pass through property tax revenue resulting from new subleases related to restaurants refranchised in fiscal 2025 and 2024.

Franchise royalties and other increased $1.7 million, or 5.2% in 2025 compared to the prior year, primarily due to refranchising activity.

Franchise contributions for advertising and other services revenues decreased $0.6 million, or 2.0% in 2025 compared to the prior year, primarily due to lower IT support revenue, partially offset by increased franchise marketing contributions.

Franchise occupancy expenses, primarily rent, increased $7.2 million, or 25.9% in 2025 compared to the prior year, primarily due to higher operating lease costs in the current year from refranchising.

Franchise support and other costs increased $1.9 million, or 42.6% in 2025 compared to the prior year, primarily due to higher bad debt expense.

Franchise advertising and other service