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Revenue
9 Months Ended
Jul. 04, 2021
Revenue from Contract with Customer [Abstract]  
Revenue REVENUE
Nature of products and services — We derive revenue from retail sales at Jack in the Box company-operated restaurants and rental revenue, royalties, advertising, and franchise and other fees from franchise-operated restaurants.
Our franchise arrangements generally provide for an initial franchise fee of $50,000 per restaurant and generally require that franchisees pay royalty and marketing fees at 5% of gross sales. These arrangements also require franchisees to pay sourcing, technology, and other miscellaneous fees.
Disaggregation of revenue — The following table disaggregates revenue by primary source (in thousands):
QuarterYear-to-date
July 4,
2021
July 5,
2020
July 4,
2021
July 5,
2020
Sources of revenue:
Company restaurant sales$91,892 $82,444 $292,132 $262,188 
Franchise rental revenues80,598 76,021 262,248 241,990 
Franchise royalties45,950 41,537 146,913 127,829 
Marketing fees44,305 36,757 142,398 116,142 
Technology and sourcing fees4,081 3,814 12,977 12,316 
Franchise fees and other services2,632 1,702 8,548 5,640 
Total revenue$269,458 $242,275 $865,216 $766,105 
Contract liabilities — Our contract liabilities consist of deferred revenue resulting from initial fees received from franchisees for new restaurant openings or new franchise terms, which are recognized over the franchise term. We classify these contract liabilities as “Accrued liabilities” and “Other long-term liabilities” in our condensed consolidated balance sheets.
A summary of significant changes in our contract liabilities is presented below (in thousands):
Year-to-date
July 4,
2021
July 5,
2020
Deferred franchise fees at beginning of period$43,541 $46,272 
Revenue recognized (4,415)(4,249)
Additions 1,718 1,923 
Deferred franchise fees at end of period$40,844 $43,946 
The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied as of July 4, 2021 (in thousands):
Remainder of 2021$1,225 
20224,828 
20234,677 
20244,487 
20254,257 
Thereafter21,370 
$40,844 
We have applied the optional exemption, as provided for under Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty.