Jack in the Box Gets $100M in 3rd Party Financing Facility for Franchisees

In its 2011 Quarter 1 earnings call today, Jack in the Box (NASDAQ: JACK) announced an agreement with a third party financing source, to provide up to $100 million in franchisee financing. The company noted that its balance sheet and credit profile was utlized to arrive at workable rates and that JACK's maximum default exposure would be $10M to $20M depending on draw.

This follows on Papa John's (PZZA) announcement that it would continue in 2011 its broad base of franchisee assistance items, including initial fee, royalty andf supply chain relief and incentive actions.