August 15, 2012 // Franchising.com // SAN DIEGO – Jack in the Box Inc., the Southern California-based restaurant company known for great burgers and a fun, fictional CEO, Jack, is looking for a franchisee to acquire its Jack in the Box® restaurants in the Tulsa area along with local development rights. On Tuesday, August 21, Jack in the Box is hosting an Executive Briefing & Exchange in Tulsa, at which qualifying prospective franchisees can learn more about Jack in the Box and franchising opportunities. For additional information, call 858-571-4044.
Tulsa is one of several new markets that Jack in the Box recently entered with an innovative “seeding” strategy to open company-operated restaurants while simultaneously looking for a franchisee to acquire the market. Jack in the Box now has four locations in Tulsa since opening its first local restaurant in Broken Arrow in 2010.
“We’re taking a collaborative approach to new market development,” said Grant Kreutzer, director of Franchise Licensing & Recruitment for Jack in the Box. “By ‘seeding’ a market with company-operated restaurants, we're able to secure great locations, open restaurants with the full support of our marketing and operations teams, and establish a sales history and cash flows that could help a franchisee secure the necessary financing to continue expanding in the market.”
Kreutzer said the seeding strategy supports the company’s strategic initiative to expand franchise ownership in the Jack in the Box system. In addition to Tulsa, Jack in the Box is also seeking experienced, multi-unit restaurant operators to refranchise other company-seeded markets in the Southeast and Midwest. In markets like Kansas City, Indianapolis and Cincinnati, new franchisees can acquire up to 10 recently opened restaurants, then further develop the market. Franchising opportunities are also available in other new markets, including Cleveland, Louisville, Wichita, Omaha, Little Rock, Fayetteville and Champaign, Ill.
To encourage expansion in Tulsa and other new markets, Jack in the Box is currently offering franchisees an incentive program that reduces royalties by up to 50 percent for up to five years. Jack in the Box will also waive the $50,000 franchise fee it typically receives for each new restaurant opened. And to help promote the Tulsa locations, up to 75 percent of advertising fees will be allocated to local marketing efforts.
“Local ownership is advantageous to both Jack in the Box and a franchisee for several reasons,” Kreutzer said. “Jack in the Box can benefit by leveraging the resources of a local operator to help us expand. We already have a high level of brand awareness in the area, but local operators often have better insight into marketplace dynamics that can drive business – from where to develop to optimizing local marketing opportunities. Meanwhile the new franchisee is entering into an agreement with a strong company that’s been in business for more than 60 years and will continue to invest in areas like menu innovation, marketing and business intelligence.”
Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 20 states. Additionally, through a wholly owned subsidiary, the company operates and franchises Qdoba Mexican Grill®, a leader in fast-casual dining, with more than 600 restaurants in 42 states and the District of Columbia. For more information on Jack in the Box and Qdoba, including franchising opportunities, visit www.jackinthebox.com or www.qdoba.com.