75-year-old fast-food chain sues over dozens of store closures
By Fernanda Tronco
Published on April 16, 2026.
Fast-food chain Jack in the Box is seeking a restraining order in Washington state court to block franchisee AJP Enterprises from closing 38 restaurants across the Seattle metro area. This comes as the company continues to streamline its operations and is working on a plan to close underperforming locations. The dispute, which arose after AJP was terminated over $1.4 million in unpaid marketing fees, has escalated into a legal dispute with AJP Enterprise. Jackin the Box argues that AJP has no contractual right to close the restaurants and that unauthorized closures could harm brand equity, disrupt local markets, and create broader operational risks. The company's strategy includes closing approximately 150 underperforming restaurants to 200 underperforming units, simplifying operations, improving the company’s balance sheet, and improving financial performance.
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