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REVENUE
 9 Months Ended
Jul. 06, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Nature of products and services — The Company derives 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 franchise agreements for both brands.
Disaggregation of revenue — The following table disaggregates revenue by segment and primary source for the periods ended July 6, 2025 (in thousands):
QuarterYear-to-date
Jack in the BoxDel TacoTotalJack in the BoxDel TacoTotal
Company restaurant sales$94,112 $46,819 $140,931 $322,962 $161,867 $484,829 
Franchise rental revenues76,538 8,589 85,127 260,254 27,726 287,980 
Franchise royalties43,078 7,469 50,547 148,208 25,054 173,262 
Marketing fees43,011 6,465 49,476 147,611 21,398 169,009 
Technology and sourcing fees4,136 548 4,684 14,396 2,165 16,561 
Franchise fees and other services1,526 696 2,222 5,765 1,715 7,480 
Total revenue$262,401 $70,586 $332,987 $899,196 $239,925 $1,139,121 
The following table disaggregates revenue by segment and primary source for the periods ended July 7, 2024 (in thousands):
QuarterYear-to-date
Jack in the BoxDel TacoTotalJack in the BoxDel TacoTotal
Company restaurant sales$100,355 $66,125 $166,480 $331,339 $226,279 $557,618 
Franchise rental revenues82,154 6,971 89,125 267,350 20,797 288,147 
Franchise royalties46,490 7,287 53,777 153,227 24,055 177,282 
Marketing fees46,412 6,084 52,496 153,055 19,843 172,898 
Technology and sourcing fees5,006 771 5,777 15,905 3,741 19,646 
Franchise fees and other services1,332 184 1,516 5,475 950 6,425 
Total revenue$281,749 $87,422 $369,171 $926,351 $295,665 $1,222,016 
Contract liabilities — Contract liabilities consist of deferred revenue resulting from initial franchise and development fees received from franchisees for new restaurant openings or new franchise terms, which are recognized over the franchise term. The Company classifies these contract liabilities as “Accrued liabilities” and “Other long-term liabilities” in our condensed consolidated balance sheets.
A summary of significant changes in contract liabilities is presented below (in thousands):
Year-to-date
July 6,
2025		July 7,
2024
Deferred franchise and development fees at beginning of period$51,990 $50,471 
Revenue recognized (4,656)(4,490)
Additions 2,001 4,243 
Deferred franchise and development fees at end of period$49,335 $50,224 
As of July 6, 2025, approximately $8.8 million of development fees related to unopened restaurants are included in deferred revenue. Timing of revenue recognition for development fees related to unopened restaurants is dependent upon the timing of restaurant 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 as of July 6, 2025 (in thousands):
Remainder of 2025
$1,222 
20265,021 
20274,693 
20284,084 
20293,472 
Thereafter22,080 
$40,572 
The Company has 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.