Revenue

4 Months Ended

Jan. 17, 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. 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 17, 2021		January 19, 2020
Sources of revenue:
Company restaurant sales	$	114,278	$	105,364
Franchise rental revenues	103,749		96,084
Franchise royalties	57,343		50,243
Marketing fees	55,776		48,835
Technology and sourcing fees	5,090		4,924
Franchise fees and other services	2,305		2,223
Total revenue	$	338,541	$	307,673

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):

	Sixteen Weeks Ended
	January 17, 2021		January 19, 2020
Deferred franchise fees at beginning of period	$	43,541	$	46,273
Revenue recognized	(1,779)		(1,632)
Additions	428		895
Deferred franchise fees at end of period	$	42,190	$	45,536

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied as of January 17, 2021 (in thousands):

Remainder of 2021	$	3,504
2022	4,786
2023	4,635
2024	4,445
2025	4,215
Thereafter	20,605
	$	42,190

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.