One of the hottest businesses in the United States is the fast food business. This is why many entrepreneurs are considering owning a franchise in the burger industry, especially with In-n-Out. In-n-Out burger is one of the most popular names in the fast food industry, known for its fresh ingredients and simple menu.
Unfortunately, In-n-Out is a privately-owned business and has no plan of expanding beyond its home market, despite its popularity. As a result, you cannot open an In-n-Out burger franchise. The good news, however, is that there are other alternatives. There is a Jack in the Box Franchising- burger franchise available for you. Read on to discover more about In-n-Out and alternative franchising opportunities.
Facts About In-n-Out Burger
In-n-Out is a family business founded by Harry and Esther Synder in 1948. Since then, it has been growing consistently, with about 300 locations in five states. Currently, it is under the administration of Lynsi Snyder as the present CEO. Despite its growth, In-n-Out has offered just a fistful of franchises, and this is not about to change any time soon.
The key values of In-n-Out Burger that have made it the people’s choice over the years are its secret menu items, crossed palm trees, fresh ingredients, and made-to-order burgers. The restaurant is one of the top burger chains in the different customer surveys.
In-n-Out Site Standards
In-n-Out Burger has the same features in the entire over 300 locations throughout the five states. These features are the minimum standard that any franchisor looking for a franchising opportunity in the fast food industry should look out for.
- The traffic of at least 50,000 ADT at the site.
- The population of at least 60,000 (Trade Area).
- Lot size of about 45,000 sq. ft.
- The median income of about $45,000 (Trade Area)
- Minimum drive-thru stacking of about 12 cars is required.
- Seating capacity of 75 seats inside and 20 seats outside.
- Building Area of about 3,800 sq. ft.
- The site must be dynamic and located around high-activity areas near retail mass, commercial shopping center pads, freeway locations, and major intersections.
- Minimum Parking of 45 Spaces is required.
- Signage should be an eminent pylon sign on major arterial.
- Zoning is commercial, with permitting operation hours between 10:30 am to 1:30 am throughout the week.
- The site should have easy ingress and high visibility.
- The deal structures are purchase and lease with the option to purchase.
Jack in the Box as a Comparable Company
Although In-n-Out is unavailable for franchising, there are other franchising opportunities in the fast food industry with comparable minimum site standards. An example is Jack in the box. The cost and opportunities of Jack in the box are discussed below.
Jack in the Box Franchise
As an American restaurant with quick service, Jack in the Box is popular for its witty mascot— Jack, the clown. The eatery offers menu items like tacos, hamburgers, chicken sandwiches, breakfast items, and international food options like egg rolls and fried rice.
Jack in the box has a great drive-thru experience. In fact, most of the business comes from take-out and drive-thru orders. Although the franchisor has collective units, the majority of the Jack in the Box restaurants are franchised.
Cost and Initial Investment
Initial Investment: To start a franchise with Jack in the box, you’re expected to pay an investment fee between the range of $1.5 million and $3.3 million. This does not include the cost of obtaining real estate and other related costs.
Initial Franchise Fees: As a new franchise, you’re expected to pay an initial franchise fee of $50,000. The fee is for every unit you plan to develop and can be paid once the agreement is signed. However, as a new franchisee looking to own a franchise with nontraditional Jack in the Box restaurants, you’re expected to pay an initial franchise fee of $25,000 per unit. You may also be asked to pay a development fee of $25,000 to develop any location.
Ongoing Royalties and Program Contributions: An ongoing 5% royalty fee is required on the total monthly sales. However, the royalty fee may be reduced or increased, depending on some circumstances.
Jack in the box offers a wide range of opportunities for Franchisees, from digital guest experience to great menu innovation. Here are some other reasons to start a franchise with Jack in the Box.
- They offer top-class support and training on different topics from professionals.
- They provide a digital guest experience that enables you to build online followers.
- They provide a convenient drive-thru or take-out for guests.
Although In-n-Out is unavailable for franchising, you don’t have to kill your dream of owning a franchise in the fast food industry. With an entrepreneurial spirit and a strong business acumen, you can be a franchise partner with Jack in the Box restaurant.