Jack In The Box 2007 Annual Report Download - page 10

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EXPANDING FRANCHISING
Our third strategic initiative is to continue expanding our franchise operations to generate higher
margins and returns for the company, while mitigating business-cost and investment risks.
In fiscal 2007, we sold 76 company-operated Jack in the Box restaurants to franchisees. Additionally,
franchisees developed 16 new Jack in the Box restaurants during the year and entered into development
agreements to add more locations over the next few years. In 2008, our franchisees plan to expand
the Jack in the Box brand into Albuquerque, NM, and two Texas markets, Abilene/San Angelo and
Midland/Odessa.
Approximately a third of the Jack in the Box system, which totaled 2,132 locations at fiscal year
end, is franchised. Through continued refranchising and development of new franchised restaurants,
our long-term goal is to grow the percentage of franchise ownership by approximately 5 percent
annually and move toward franchise ownership in the range of 70-80 percent, which would be
more closely aligned with that of the QSR industry.
Our Qdoba system is predominantly franchised. We plan to add 75-90 new restaurants in fiscal
2008 and 75-100 units annually over the next several years, primarily through franchised growth.
EXPANDING