(Photos: fried taco, bacon cheeseburger Jr.,stoner video:YouTube)

A few years ago, I was stuck in the cubicle working for California Culinary Academy on Polk St. My life sucked. As an admissions rep, I had to call up high school students and try to get them to apply to our school. My management sucked. Whenever I closed a sale (receive student application), my reward was hitting a gong. “Welcome Emperor,” I thought to myself. Other contest prizes included a nail clipper, gum, or a candy bar. I was frustrated, working under people I knew I can outsmart and out run in a 40 yard dash.

That is when the light hit me. I will own a franchise and make millions of dollars. Next, cruise down Rodeo Drive in my Porsche 911 and my trophy wife I found from online dating. With a few thousand dollars in my bank, I did some research. Not my pants, but my jaw dropped. I found out I needed at least two million dollars just to open a well branded franchise such as Jack in the Box. A few days ago, I had the junk food itch. I paid a visit to Jack on Mission St. As a former marketing manager for a franchise, I give them props. A few years back, Jack in the Box were liable for a lawsuit for tainted meat. With an iron fist and witty commercials, Jack in the Box has made a comeback. For readers who want to open a restaurant, here are some numbers found on the Jack in the Box website.

Food.
So with the $5 allowance money I got from my grandma, I went to Jack in the Crack. Remembering my days as a broke college student, I ordered two tacos-$.99. Fried till lightly brown, mystery beef with a few shreds of lettuce and cheese satisfied my craving. With the slightest bite, the crackle from the crunch echoed about 2 inches – not that far. Craving a sandwich, the bacon cheeseburger Jr. -$.99 did the trick. The marriage of melted cheese, beef, and bacon shouts fast food heaven. Clearly, Jack In the Box offers better food from their competitors. With a crunchy and fragrant taste, their sourdough burger is a delight. They offer a large menu with creative treats.

Consultant Hat.
Jack in the Box targets a particular customer base. Blue collar workers, minorities and students are their primary audience. Their range of menu includes ethnic delights such as egg rolls and fried taocs. The advantage of Jack in the Box is that some of their locations open late nights. With rent and other items as your fixed cost, franchise owners will be able to make a great additional revenue from both late night business and to go business. At times, this can be around 30% additional revenue. With a strong marketing strategy that combines dry humor, wittiness, and a sketchy Saturday Night Live advertising, Jack will be around for awhile. While investing in McDonald’s is more of a safe choice, Jack in the Box is more for the adventurous entrepreneurs. Jack in the Box has limitations. They are located only in 18 states. Jack in the Box’s creative ad strategy has created a cult following of fast food lovers. View Jack’s Myspace page.

When you select a franchise, take into mind brand equity. Simply, how much is my brand worth? McDonald’s is known globally while Jack in the Box has a weaker brand equity value. Additionally, consider investing in a franchise that you may see owning more than one location. If you build a McDonald’s franchise and you’re successful, you can apply to purchase more. You’re familiar with the learning curve so it is an easy transition. If you’re low on cash but would love to get into the game, consider Subway’s cost a lot less. Few hundred thousand dollars will do. Their cost is lower since they do not use grills and need less space.

Source: Jack in the Box franchise page

Building & Site Criteria
Building: 2,000 to 2,600 square feet
Lot Size: 20,000 to 30,000 square feet
Parking: 25-30 spaces
HVAC: 8.5 ton unit in dining room / 1-10 ton unit in kitchen
Electric: 120/280v, 60 Hz, 3Ø, 600A wye (preferred)
Gas: 960 MBH, maximum – equivalent length of 85ft. (prototypical-verify net local conditions)
Sewer: 46 F.U. total (32 F.U. non-grease waste, 23 F.U. grease waste)
Water: 54.5 F.U. or 52 gpm (flush vales) @ 60-80 psig maximum instantaneous
Signage: Corporate logo and colors on building and prominent pylon or monument sign

Demographic Criteria
Population: One mile 20,000 residential population
Employment: One mile 5,000
Traffic: 25,000 ADT

Location Criteria

Jack in the Box® is a convenience driven restaurant chain. A vast majority of Jack in the Box customers come from within two miles or six minutes driving time. In order to maximize that convenience factor, it is vital that prospective sites be the most accessible and visible locations available.

Investment Information
Estimated Amount or Estimated Low-High Range
Development Fee (if applicable) $25,000 (per restaurant)
Initial Franchise Fee $50,000 (per restaurant)
Fee for Trade Area Survey Analysis (plus travel expenses) $1,200
Fee for Architect / Engineering Services $40,000 – $90,000
Landscaping $20,000 – $70,000
Furniture, Fixture and Equipment
Cash Purchase $320,000 – $413,000
Personal Computer & Printer
Software License Fee
POS Software Fee
Satellite System
Technology Support Services $3,168
Point of Sale System
(includes Order Confirmation System & Computer-Based Training) $30,000 – $35,000
Initial Inventory and Working Capital $57,800
Business Licenses, Utility Deposits $2,000
Site improvements Cash Price $102,000 – $450,000
Construction $303,000 – $741,000
Insurance $18,000 – $20,000
(excludes Workers’ Comp. and Property Insurance)
Additional Funds (3 months) $176,405 – $492,165

TOTAL ESTIMATED COST FOR A MARK VIII STYLE RESTAURANT (excluding Land and Financing) $1,123,573 – $2,450,303
Financing rates, lease rates, cash injection, loan or lease fees, creditworthiness, lender selection and interest rates, closing costs and factors may vary significantly. The Mark VIIIZ building style is the building style currently approved for new construction. A new prototype is under development, but we expect construction costs to be similar.