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Revenue
 12 Months Ended
Sep. 29, 2024
Revenue from Contract with Customer [Abstract]  
Revenue REVENUE
Nature of products and services — We derive revenue from retail sales at Jack in the Box and Del Taco 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 per restaurant for a 20-year term, and generally require that franchisees pay royalty and marketing fees based upon a percentage of gross sales. The agreements also require franchisees to pay technology fees, as well as sourcing fees for Jack in the Box franchise agreements.
Disaggregation of revenue — The following table disaggregates revenue by segment and primary source for the fiscal year ended September 29, 2024 (in thousands):
Jack in the BoxDel TacoTotal
Company restaurant sales$427,057 $281,978 $709,035 
Franchise rental revenues347,227 28,201 375,428 
Franchise royalties198,377 31,714 230,091 
Marketing fees197,900 26,258 224,158 
Technology and sourcing fees19,857 4,658 24,515 
Franchise fees and other services7,002 1,077 8,079 
Total revenue$1,197,420 $373,886 $1,571,306 
The following table disaggregates revenue by segment and primary source for the fiscal year ended October 1, 2023 (in thousands):
Jack in the BoxDel TacoTotal
Company restaurant sales$413,748 $432,530 $846,278 
Franchise rental revenues351,283 13,308 364,591 
Franchise royalties207,064 25,669 232,733 
Marketing fees199,917 21,025 220,942 
Technology and sourcing fees16,073 3,907 19,980 
Franchise fees and other services7,226 556 7,782 
Total revenue$1,195,311 $496,995 $1,692,306 
The following table disaggregates revenue by segment and primary source for the fiscal year ended October 2, 2022 (in thousands):
Jack in the BoxDel TacoTotal
Company restaurant sales$414,225 $286,845 $701,070 
Franchise rental revenues335,936 4,455 340,391 
Franchise royalties188,902 13,414 202,316 
Marketing fees183,076 10,907 193,983 
Technology and sourcing fees14,740 1,078 15,818 
Franchise fees and other services14,309 196 14,505 
Total revenue$1,151,188 $316,895 $1,468,083 
In October 2022, a Jack in the Box franchise operator paid the Company $7.3 million in order to sell his restaurants to a new franchisee at the current standard royalty rate, which is lower than the royalty rate in the existing franchise agreements. The payment represented the difference between the existing royalty rate and the new royalty rate based on projected future sales for the remaining term of the existing agreements. The payment was non-refundable and not subject to any adjustments based on actual future sales. The Company determined the transaction represented the termination of the existing agreement rather than the transfer of an agreement between franchisees. As such, the $7.3 million was recognized in franchise royalty revenue during the first quarter of 2023.
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 generally recognized over the franchise term. We classify these contract liabilities within “Accrued liabilities” and “Other long-term liabilities” in our consolidated balance sheets.
A summary of significant changes in our contract liabilities is presented below (in thousands):
20242023
Deferred franchise and development fees at beginning of period$50,474 $46,449 
Revenue recognized during the period(5,854)(5,469)
Additions during the period7,370 9,494 
Deferred franchise and development fees at end of period$51,990 $50,474 
As of September 29, 2024, approximately $9.2 million of development fees related to unopened stores are included in deferred revenue. Timing of revenue recognition is dependent upon the timing of store openings and are recognized over the franchise term at the date of opening.
The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period (in thousands):
2025
$5,286 
20264,953 
20274,623 
20284,008 
20293,383 
Thereafter20,580 
$42,833 
We have applied the optional exemption, as provided for under ASC 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.