Company: JACK
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0000807882-25-000072
Chunk: 65

Company: JACK IN THE BOX INC
Filing Date: 2025-11-19
Form: 10-K
Item: Item 7
Chunk 65
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 higher costs for rent, utilities, and other operating costs including delivery fees.

29

Jack in the Box Franchise Operations

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

20252024Franchise rental revenues$332,735$347,227Royalties189,646198,377Franchise fees and other8,6707,002Franchise royalties and other198,316205,379Franchise contributions for advertising and other services206,200217,757Total franchise revenues$737,251$770,363Franchise occupancy expenses $219,212$217,430Franchise support and other costs12,50612,731Franchise advertising and other services expenses211,408225,465Total franchise costs$443,126$455,626Franchise costs as a percentage of total franchise revenues60.1 %59.1 %Average number of franchise restaurants2,0232,037Franchised restaurant sales$3,792,222$3,969,200Franchise restaurant AUV$1,874$1,949Royalties as a percentage of total franchise restaurant sales5.1 %5.0 %

Franchise rental revenues decreased $14.5 million, or 4.2%, in 2025 compared to the prior year, primarily due to a decrease in percentage rent of $16.5 million, driven by lower sales, partially offset by higher lease termination fees of $2.7 million, and higher pass through property tax revenue of $1.1 million.

Franchise royalties and other decreased $7.1 million, or 3.4%, compared to the prior year primarily due to lower royalty income driven by lower sales.

Franchise contributions for advertising and other services revenues decreased $11.6 million, or 5.3%, mainly due to lower sales driving marketing contributions lower by $8.9 million and lower digital and technology fees of $2.4 million.

Franchise occupancy expenses, mainly rent, increased $1.8 million, or 0.8%, in 2025 primarily due to higher pass through property tax expense of $1.1 million and higher operating lease costs of $0.9 million.

Franchise support and other costs decreased $0.2 million, or 1.8% in 2025.

Franchise advertising and other service expenses decreased $14.1 million, or 6.2%,