Company: JACK
Filing Date: 2025-02-25
Form Type: 10-Q
Source: 0000807882-25-000016
Chunk: 6

Company: JACK IN THE BOX INC
Filing Date: 2025-02-25
Form: 10-Q
Item: Item 2
Chunk 6
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 maintenance and repair.

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):

Sixteen Weeks EndedJanuary 19,2025January 21,2024Franchise rental revenues$10,765$7,618Royalties10,0259,454Franchise fees and other394533Franchise royalties and other10,4199,987Franchise contributions for advertising and other services9,5399,569Total franchise revenues$30,723$27,174Franchise occupancy expenses $10,916$7,436Franchise support and other costs1,8971,446Franchise advertising and other services expenses10,00710,341Total franchise costs$22,820$19,223Franchise costs as a percentage of total franchise revenues74.3%70.7%Average number of franchise restaurants466417% increase11.8%Franchised restaurant sales$217,283$198,476Franchised restaurant AUVs$466$476Royalties as a percentage of total franchised restaurant sales4.6%4.8%

Franchise rental revenues increased $3.1 million, or 41.3%, compared to the prior year primarily due to higher rental income and property tax revenue resulting from new subleases related to the 60 restaurants refranchised since the first quarter of 2024.

Franchise royalties and other increased $0.4 million, or 4.3%, compared to the prior year primarily due to higher franchise restaurant sales resulting from the 60 restaurants refranchised since the first quarter of 2024.

Franchise contributions for advertising and other services revenues decreased less than $0.1 million, or 0.3%, compared to the prior year primarily due to lower income from equipment sales, partially offset by increased franchise marketing contributions resulting from the 60 restaurants refranchised since the first quarter of 2024.

Franchise occupancy expenses, primarily rent, increased $3.5 million, or 46.8%, compared to the prior year primarily due to higher operating lease costs in the current year from refranchising.

Franchise support and other costs increased $0.5 million, or 31.2%, compared to the prior year primarily due mainly to higher bad debt expense and franchise support costs resulting from the 60 restaurants refranchised since the first quarter of 2024.

Franchise advertising and other service