How Much Does It Cost to Open up a Jack In the Box?

A Jack in the Box franchise can be a great investment, and an entrepreneur wants to ensure they’re getting a fair shake and paying a fair price for their restaurant equipment, supplies, and so much more. Figuring how much it costs to open up a Jack in the Box franchising is easier said than done.

Many variables influence the cost of starting a JIB franchise, including the size of the restaurant, location, type of location, seating capacity, construction and building materials, lease costs, and food inventory. This article will analyze the amount of money it costs to open a Jack in the Box.

What are the Costs of Opening a Jack in the Box?

Jack in the Box is a fast-food restaurant chain that has been around since 1951. Robert O. Peterson originally founded it.

Jack in the Box has been growing steadily, with their latest numbers showing over 2,220 locations across the globe. You should have a net of $1,500,000 and around $750,000 in cash on hand. At least five years of experience running many restaurants is also required.

Here is the whole cost breakdown:

Startup Fee

To open a Jack in the Box location, you will need to pay a franchise fee of roughly $50,000. Remember that the price may rise if the company adds additional taxes or fees. The typical term of office is somewhere from 10 to 20 years long. You’ll pay $2,500 a year if you plan to manage the restaurant for less than 20 years as a franchise.

Survey Fee

You must also pay for a survey of the trade area to be conducted. The average cost of a single site survey is around $7,000.00. The price already includes additional fees.

Space Fee

The cost of renting or purchasing land is usually determined by the size and location of the property. 20,000-30,000 square feet of front space is needed for the typical Jack in the Box. There are between 20 and 30 parking spaces in the restaurant’s parking lot, between 2,032 and 2,561 square feet.

Building and Construction Fee

Once you’ve completed the site work, you’ll begin building the building. It is where the majority of your Jack in the Box franchise costs will come from. Size, condition, and location are all factors that influence the cost of a building renovation. You will spend between  $418,000 and $622,000.

Furniture and Operational Equipment Fee

 You should expect to pay between $340,000 and $441,000 for a home. You’ll find everything in terms of furniture and operational equipment to run your business in this category, from computers to software to point-of-sale systems and everything in between. Between $35,000 to $45,000 is the price range for this.

Startup Inventory Fee

Your startup inventory must come from a Jack in the Box-approved vendor. Food and other necessities, such as paper and cleaning materials, are also included in this package. Expect to spend anywhere from $12,000 to $20,000 on this project.

Operating Funds 

The first three months of establishing a firm almost often require the proprietor to cover their expenses. Because you won’t be making a lot of money at that time, you’ll need at least $165,000 and $458,000 in your bank account if you want to do this. Paying your staff, making repairs, paying for utilities, and making recurring purchases are just a few things you’ll need to do to keep your business running.

Architect Fee

A competent architect will also be needed for the design of your restaurant. This factor’s typical price ranges from $40,000 to $165,000, but it can go as low as $40,000.

Evaluation Fee

It can take up to three steps in most situations; the first phase usually costs between $2,500 and $3,500. $10,000 to $20,000 is the price range for the second step. More than $30,000 is required for the third phase.”

Work Site Fee

Work on the site typically includes excavation, utility installation, grading, and landscape lighting. Typically, building the restaurant costs between $200,000 and $470,000.

What are the Extra Costs?

  • Five percent of your overall sales get paid in royalties.
  • It costs you 5% of your overall revenue for marketing and advertising.

In the end, opening up any restaurant takeout location will cost a ton of money. While the exact price will depend on several factors (e.g., the size of the building you purchase), the general trend seems to be that it takes at least a few hundred thousand dollars to open up your doors.