A West Coast and Texas burger brand in the middle of a turnaround, and how to underwrite the franchisee behind the lease, from a buyer’s broker who has closed Jack in the Box deals in Texas and Oregon.
A Jack in the Box NNN property is a freestanding quick-service restaurant with a drive-thru, leased on a long-term absolute NNN lease, typically 20 years with 10% rent increases every five years on new deals. Jack in the Box operates about 2,100 restaurants, concentrated in California, Texas and the West, and roughly 93% are franchised, so most Jack in the Box NNN leases are backed by a franchisee rather than the company. The brand is in the middle of a turnaround: under its “JACK on Track” plan it sold Del Taco in December 2025, is closing underperforming restaurants, and named an interim CEO in May 2026. That makes underwriting the operator and the individual store the core of any Jack in the Box purchase on a 1031 exchange.
Solid Investments FL has represented buyers on Jack in the Box transactions, including a ground lease in Houston, Texas and a corporate store in Oregon. See them in our track record. Our buyer representation is always free to you.
| Tenant | Usually a franchisee operating company; corporate leases exist but are less common. Confirm the tenant and every guarantor on each lease |
|---|---|
| Parent company | Jack in the Box Inc. (Nasdaq: JACK), San Diego, California |
| Credit | Not investment grade; the company finances itself mainly through a securitization. Franchisee credit varies by operator |
| Restaurants | About 2,128 (149 company-operated, 1,979 franchised) as of April 2026 |
| Recent performance | System same-store sales down 3.8% in its fiscal Q2 2026; 50–100 closures expected in fiscal 2026 |
| Typical lease term | 20 years on new leases |
| Lease type | Absolute NNN; ground leases and fee-simple deals both trade |
| Rent increases | Typically 10% every 5 years |
| Typical cap rate (2026) | About 5.0%–6.0% for new 20-year leases; weaker operators and shorter terms trade higher |
| Typical price range | About $1M–$3.5M |
Store counts and sales as of the company’s fiscal Q2 2026 report (May 2026). Cap rates and pricing reflect current market conditions and vary by deal.
About 93% of Jack in the Box restaurants are franchised, so most leases are franchisee-backed. Corporate leases are less common and worth a premium. Read exactly who signs the lease and who guarantees it.
Confirm how many units actually back the lease. Franchisees often hold their restaurants in separate subsidiaries, sometimes one entity per store or per small group, so a lease from a large operator may be guaranteed by an entity with only a handful of units. Get that entity’s unit count and financials.
Jack in the Box is closing underperforming restaurants, mostly franchise locations, as part of its turnaround. Make sure the store you’re buying is a keeper: strong sales, a good location and a committed operator.
Ask for store-level sales. For quick-service restaurants, rent at 6%–8% of sales is healthy and below 6% is very strong; around 10% is close to break-even for many operators. The lower the ratio, the more likely the operator renews.
Compare the rent per square foot to what similar restaurant buildings lease for nearby. If it is at or below market, you can likely re-lease the building at the same or even a higher rent if the franchisee ever fails.
Most Jack in the Box restaurants are in California, Texas and the West, where land values are high. A well-located pad in a strong market can be worth more to the next tenant than the current lease, which is your long-term protection.
We’ve represented buyers on Jack in the Box properties in Texas and Oregon:
Fast Food / QSR
Fast Food / QSR
Solid Investments FL is a NNN buyer's brokerage based in Lakewood Ranch (Sarasota), FL, that has represented buyers on Jack in the Box transactions in Texas and Oregon. We help investors and 1031 exchange buyers find, underwrite and close Jack in the Box and other quick-service restaurant properties nationwide, and our buyer representation is free.
As of 2026, new 20-year Jack in the Box leases generally trade around 5.0% to 6.0% cap rates. Corporate leases and strong, established franchisees trade at the lower end, while smaller operators and shorter remaining terms trade higher.
Usually franchisee. About 93% of Jack in the Box restaurants are franchised, so most leases are signed by franchise operators. Corporate leases exist but are less common. Always confirm exactly who signs and guarantees the lease.
Yes. Under its JACK on Track turnaround plan, Jack in the Box expects about 50 to 100 closures in fiscal 2026, mostly franchise restaurants. It also sold Del Taco in December 2025 and named an interim CEO in May 2026. Store-level sales and the operator's strength are the best protection.
Start with how many restaurants actually back the guarantee, since franchisees often hold stores in separate subsidiaries. Next, compare rent to store sales: rent at 6% to 8% of sales is healthy, below 6% is very strong, and around 10% is close to break-even for many operators. Finally, check rent per square foot against the local market so the building could be re-leased at the same or a higher rent if needed.
It can be, with price points of about $1 million to $3.5 million and long, passive leases, often on valuable West Coast and Texas real estate. Because the brand is in a turnaround and most leases are franchisee-backed, the operator, store sales and rent need careful review.
If you buy it fee simple, yes: you own the building and site improvements, which can be depreciated, and a cost segregation study can accelerate part of that. With a ground lease you own only the land, which is not depreciable. Confirm with your CPA.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
We’ve closed Jack in the Box deals and know how to vet the operator. Tell us your budget and timeline; our buyer representation is completely free.
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