Jack in the Box franchisees on Monday said they have filed a complaint with California state regulators over a planned restructuring in the way the franchisor manages some of the leases that it controls.
The National Jack in the Box Franchisee Association, which represents 2,000 of the chains more than 2,200 restaurants, say it is trying to protect operators as the company forms a new subsidiary to manage its real estate.
Jack in the Box controls the leases for 1,800 franchisee-owned locations. The company leases those locations from landlords and then subleases them to franchiseesa relatively common phenomenon pioneered by systems such as McDonalds Corp.
According to the operators, Jack is planning to organize its real estate under a separ…
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