Jack in the Box Inc. (NASDAQ: JACK) today disclosed the details of a refranchising transaction that was completed in February and included in the company’s second-quarter operating results, which were announced on May 15. On Feb 11, Ameen Poonja, an experienced franchisee of Dunkin’ Donuts and Popeyes locations in Illinois, acquired four Jack in the Box®restaurants in the Indianapolis area.
In addition, subsequent to the close of its second quarter, Jack in the Box Inc. completed the sale of 18 restaurants comprising its Beaumont, Texas, market to TLIG Restaurants, LLC. Whereas Poonja is new to the Jack in the Box system, Opiah Izu, franchise operator with TLIG Restaurants, is a Jack in the Box veteran. He worked for the company for 27 years before becoming a franchisee in 2009 and currently operates 39 franchised Jack in the Box locations. The other principal at TLIG Restaurants is Sherman Lewis, who, in addition to his Jack in the Box locations, also owns 10 Shell gas stations.
Indianapolis is one of five markets in the Jack in the Box system “seeded” with company-operated locations, and selling four of the six restaurants in Indianapolis represents the second sale of restaurants in these seed markets. In September 2012, the company completed the sale of the seven restaurants comprising its Oklahoma City market.
“By pursuing an innovative ‘seeding’ strategy and taking a collaborative approach to new market development, Jack in the Box is able to 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,” said Grant Kreutzer, director of Franchise Licensing & Recruitment for Jack in the Box.
The company is currently seeking experienced, multi-unit restaurant operators to refranchise other company markets in the Southeast and Midwest. In Tulsa, Kansas City, Indianapolis and Cincinnati, franchisees can acquire up to 10 recently opened restaurants, then further develop the market with royalty and franchise fee incentives. For more information on franchising opportunities, visit www.jackinthebox.com/franchise.
The Jack in the Box system is currently more than 76 percent franchised versus 25 percent in 2005, and it is expected to be approximately 80-85 percent franchised upon completion of its refranchising strategy.
Jack in the Box Inc. (NASDAQ: JACK), based in San Diego, is a restaurant company that operates and franchises Jack in the Boxrestaurants, one of the nation’s largest hamburger chains, with more than 2,200 restaurants in 21 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 44 states, the District of Columbia and Canada.