Summary Of Refranchisings, Franchisee Development And Acquisitions (Tables)

12 Months Ended

Oct. 01, 2017

Summary Of Refranchisings, Franchisee Development And Acquisitions [Abstract]

Number Of Restaurants Sold And Developed By Franchisees And Related Gains And Fees Recognized

The following table summarizes the number of restaurants as of the end of each fiscal year:

	2017	2016	2015
Jack in the Box:
Company-operated	276	417	413
Franchise	1,975	1,838	1,836
Total system	2,251	2,255	2,249
Qdoba:
Company-operated	385	367	322
Franchise	341	332	339
Total system	726	699	661

The following table summarizes the number of restaurants sold to franchisees, the number of restaurants developed by franchisees, and the related fees and gains (losses) recognized in each fiscal year (dollars in thousands):

	2017			2016			2015
Restaurants sold to Jack in the Box franchisees	178			1			21
New restaurants opened by franchisees:
Jack in the Box	18			12			16
Qdoba	19			18			22
Initial franchise fees	$	8,078		$	955		$	1,453
Proceeds from the sale of company-operated restaurants (1)	$	99,591		$	1,439		$	3,951
Net assets sold (primarily property and equipment)	(30,597		)	(195		)	(4,283		)
Lease commitment charges (2)	(11,737		)	—			(2,542		)
Goodwill related to the sale of company-operated restaurants	(10,056		)	(15		)	(47		)
Other (3)	(9,167		)	1			(218		)
Gains (losses) on the sale of company-operated restaurants	$	38,034		$	1,230		$	(3,139	)

 ____________________________

(1) Amounts in 2017 include additional proceeds of $0.2 million related to restaurants sold in a prior year. Amounts in 2016 and 2015 include additional proceeds of $1.4 million and $1.5 million, respectively, related to the extension of the underlying franchise and lease agreements from the sale of restaurants in prior years.

(2) Charges are for operating restaurant leases with lease commitments in excess of our sublease rental income.

(3) Amounts in 2017 represent impairment of $4.6 million and equipment write-offs of $1.4 million related to restaurants closed in connection with the sale of the related markets, maintenance and repair charges, and other miscellaneous non-capital charges. Amounts in 2015 primarily represent impairment charges related to restaurants closed in connection with the sale of the related markets.

Business Combination Disclosure [Text Block]

Franchise acquisitions — We acquired fifty, one and seven Jack in the Box franchise restaurants in fiscal 2017, 2016 and 2015, respectively. Of the 50 Jack in the Box restaurants acquired in 2017, we took over 31 restaurants as a result of an agreement with an underperforming franchisee who was in violation of franchise and lease agreements with the Company. Under this agreement, the franchisee voluntarily agreed to turn over the restaurants. The acquisition of the additional 19 restaurants in 2017 was the result of a legal action filed in September 2013 against a franchisee, from which legal action we obtained a judgment in January 2017 granting us possession of the restaurants. Of the 50 restaurants acquired in 2017, we sold 18 of the restaurants to franchisees and closed four. We plan to sell the remaining restaurants acquired in 2017 as part of our refranchising strategy. In 2016, we also acquired 14 Qdoba franchise restaurants. Refer to Note 6, Impairment and Other Charges, Net, for additional information regarding impairment charges related to the restaurants closed subsequent to acquisition.

We account for the acquisition of franchised restaurants using the acquisition method of accounting for business combinations. The purchase price allocations were based on fair value estimates determined using significant unobservable inputs (Level 3). The goodwill recorded primarily relates to the sales growth potential of the markets acquired and is expected to be deductible for income tax purposes.

The following table provides detail of the combined acquisitions in each fiscal year (dollars in thousands):

	2017			2016			2015
Restaurants acquired from franchisees	50			15			7
Goodwill	$	13,059		$	17,034		$	—
Property and equipment	2,470			2,954			646
Intangible assets	1,260			91			—
Inventory	189			—			—
Liabilities assumed	(1,116		)	(114		)	(613		)
Gains on the acquisition of franchise-operated restaurants	—			(289		)	(33		)
Other	—			140			—
Total consideration	$	15,862		$	19,816		$	—

Of the 2017 total consideration, $13.8 million is non-cash consideration and is comprised of $9.9 million of receivables that were eliminated in acquisition accounting and $3.9 million of accounts payable that was recorded in acquisition accounting. The accounts payable recorded is primarily due to third parties to waive their liens and security interests on certain assets acquired.