Revenue (Notes)

4 Months Ended

Jan. 19, 2020

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. The agreement also requires franchisees to pay sourcing, technology and other miscellaneous fees.

Disaggregation of revenue — The following table disaggregates revenue by primary source (in thousands):

	Sixteen Weeks Ended
	January 19, 2020		January 20, 2019
Sources of revenue:
Company restaurant sales	$	105,364	$	102,832
Franchise rental revenues	96,084		83,890
Franchise royalties	50,243		49,507
Marketing fees	48,835		47,863
Technology and sourcing fees	4,924		3,951
Franchise fees and other services	2,223		2,743
Total revenue	$	307,673	$	290,786

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 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):

	Sixteen Weeks Ended
	January 19, 2020		January 20, 2019
Deferred franchise fees at beginning of period	$	46,273	$	50,018
Revenue recognized during the period	(1,632)		(1,592)
Additions during the period	895		500
Deferred franchise fees at end of period	$	45,536	$	48,926

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied as of January 19, 2020 (in thousands):

Remainder of 2020	$	3,411
2021	4,926
2022	4,726
2023	4,572
2024	4,379
Thereafter	23,522
	$	45,536

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.