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Quick-service concepts like Jack in the Box, Wendy's and Popeyes Louisiana Kitchen are turning to refranchising in an effort to boost profits and strengthen branding.
Jack in the Box Inc. has refranchised 45 units since May and has plans to sell 29 more company locations to franchisees by the end of the year.
Jack in the Box Inc. has re-franchised 45 company-owned restaurants since May and has plans to sell another 29 by year’s end, taking the company’s 2,200-unit namesake quick-service chain from about 25 percent franchised in 2005 to nearly 80 percent franchised by the close of 2013.
The San Diego-based quick-service operator is not alone in the rush to refranchise. Wendy’s, Popeyes Louisiana Kitchen and Così are just a few of the chains accelerating the practice. But while the cash infusion, lower overhead and promise of steady revenue from rent and royalties are still powerful motivators, another has come into view: a brand that’s stronger in the eyes of Main Street and, for publicly traded companies, Wall Street.
For many companies, shifti...
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