REVENUE

6 Months Ended

Apr. 17, 2022

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 (in thousands):

	12 Weeks Ended April 17, 2022
	Jack in the Box		Del Taco		Total
Sources of revenue:
Company restaurant sales	$	94,250	$	57,059	$	151,309
Franchise rental revenues	75,692		864		76,556
Franchise royalties	42,933		2,645		45,578
Marketing fees	41,390		2,158		43,548
Technology and sourcing fees	3,575		205		3,780
Franchise fees and other services	1,497		26		1,523
Total revenue	$	259,337	$	62,957	$	322,294

	12 Weeks Ended April 11, 2021
	Jack in the Box		Del Taco		Total
Sources of revenue:
Company restaurant sales	$	85,962	$	—	$	85,962
Franchise rental revenues	77,901		—		77,901
Franchise royalties	43,620		—		43,620
Marketing fees	42,317		—		42,317
Technology and sourcing fees	3,806		—		3,806
Franchise fees and other services	3,611		—		3,611
Total revenue	$	257,217	$	—	$	257,217

	28 Weeks Ended April 17, 2022
	Jack in the Box		Del Taco		Total
Sources of revenue:
Company restaurant sales	$	214,306	$	57,059	$	271,365
Franchise rental revenues	178,791		864		179,655
Franchise royalties	100,581		2,645		103,226
Marketing fees	97,191		2,158		99,349
Technology and sourcing fees	8,575		205		8,780
Franchise fees and other services	4,604		26		4,630
Total revenue	$	604,048	$	62,957	$	667,005

	28 Weeks Ended April 11, 2021
	Jack in the Box		Del Taco		Total
Sources of revenue:
Company restaurant sales	$	200,240	$	—	$	200,240
Franchise rental revenues	181,650		—		181,650
Franchise royalties	100,963		—		100,963
Marketing fees	98,093		—		98,093
Technology and sourcing fees	8,896		—		8,896
Franchise fees and other services	5,916		—		5,916
Total revenue	$	595,758	$	—	$	595,758

Contract liabilities — Our 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. 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):

	Year-to-date
	April 17, 2022		April 11, 2021
Deferred franchise and development fees at beginning of period	$	41,520	$	43,541
Changes due to business combinations	6,193		—
Revenue recognized	(2,995)		(3,075)
Additions	2,379		1,118
Deferred franchise and development fees at end of period	$	47,097	$	41,584

As of April 17, 2022, approximately $4.9 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 as of April 17, 2022 (in thousands):

Remainder of 2022	$	2,361
2023	4,977
2024	4,778
2025	4,543
2026	4,214
Thereafter	21,312
	$	42,185

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.