McDonald's vs Jack in the Box Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of McDonald's vs Jack in the Box including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
McDonald's Franchise
Jack in the Box Franchise
Investment $1,314,500 - $2,306,500$1,651,500 - $2,638,600
Franchise Fee $45,000$50,000
Royalty Fee 4%5%
Advertising Fee 4%+5%
Year Founded 19551951
Year Franchised 19551982
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee $45K1,651,500 to $2,638,600


Business Experience Requirements
 
McDonald's Franchise
Jack in the Box Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills
    		•  *Multi-unit restaurant operations experience *Minimum liquidity of $750,000 *Minimum net worth of $1.5 million *Ability to acquire and/or develop at least 5 restaurants *Operating partner is an equity partner and resides in the desired market

    Financing Options
     
    McDonald's Franchise
    Jack in the Box Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/No-/Yes
    Start-up Costs No/No-/Yes
    Equipment No/Yes-/Yes
    Inventory No/No-/Yes
    Receivables No/No-/-
    Payroll No/No-/-

    Training & Support
     
    McDonald's Franchise
    Jack in the Box Franchise
    Training On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant On-The-Job Training: 183 hours Classroom Training: 110 hours
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app -
    Operations 82% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    		-

    Expansion Plans
     
    McDonald's Franchise
    Jack in the Box Franchise
    US Expansion Yes-
    Canada Expansion No-
    International Expansion Yes-

    Company Overviews

    About McDonald's

    Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955.
    McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local business people. Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.


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    About Jack in the Box

    Jack in the Box is among the nation's leading fast-food hamburger chains, with more than 2000 quick-serve restaurants in 17 states. Jack in the Box Inc. (JACK) is offering a unique opportunity to franchise with one of the most popular brands in the quick-serve restaurant ("QSR") industry. The company's emphasis on operational efficiency and franchisee-focused value innovation has led JACK to become one of the most respected and sought after brands in the industry. The company is looking to establish relationships with select multi-unit franchise operators of non-competitive brands to franchise partial or whole markets as the brand approaches reaching its goal of being an 80% franchised chain. In select seed markets- Cincinnati, Indianapolis, Kansas City, Oklahoma City and Tulsa, growth starts with an acquisition. Franchise recently opened company restaurants and use these locations as a platform for future market development. Seeking new franchisees to develop Amarillo, Champaign, Little Rock, Louisville and Salt Lake City. New Market Development Program: Royalty fees reduced, franchise fee waived, up to 75% of advertising fee invested into local marketing. Restrictions apply and development fees still applicable.

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