Revenue

6 Months Ended

Apr. 11, 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. These arrangements also require franchisees to pay sourcing, technology, and other miscellaneous fees.

Disaggregation of revenue — The following table disaggregates revenue by primary source (in thousands):

	Quarter				Year-to-date
	April 11, 2021		April 12, 2020		April 11, 2021		April 12, 2020
Sources of revenue:
Company restaurant sales	$	85,962	$	74,380	$	200,240	$	179,744
Franchise rental revenues	77,901		69,885		181,650		165,969
Franchise royalties	43,620		36,049		100,963		86,292
Marketing fees	42,317		30,550		98,093		79,385
Technology and sourcing fees	3,806		3,578		8,896		8,502
Franchise fees and other services	3,611		1,715		5,916		3,938
Total revenue	$	257,217	$	216,157	$	595,758	$	523,830

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):

	Year-to-date
	April 11, 2021		April 12, 2020
Deferred franchise fees at beginning of period	$	43,541	$	46,272
Revenue recognized	(3,075)		(3,061)
Additions	1,118		1,488
Deferred franchise fees at end of period	$	41,584	$	44,699

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied as of April 11, 2021 (in thousands):

Remainder of 2021	$	2,397
2022	4,812
2023	4,661
2024	4,471
2025	4,241
Thereafter	21,002
	$	41,584

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.