THE COLONY, Texas -- Pizza Inn has announced a new development incentive program for new and existing franchisees. The program is designed to ease start-up costs for new franchise locations during the first two years of the restaurants operation.
The benefits of the program include no royalties for the first full year of operation and a 2 percent royalty for the second full year of operation. The royalty for the remainder of the franchise agreement is 4 percent of gross sales.
In addition, existing or new franchisees can take advantage of discounted franchise fees by signing up for the chain's standard multi-unit restaurant development agreement incentive. Multiunit agreements under the program will be structured as follows:
First restaurant - $25,000
Second restaurant - $18,750
Additional restaurants - $12,500
"We recognize that the existing economic environment will make it difficult for existing and new prospects interested in investing in the Pizza Inn brand to obtain financing," said Pizza Inn president and chief executive officer Charlie Morrison. "We anticipate that lenders will look favorably on our offer in their decision to provide funding for these prospects to pursue their desire to be a part of the Pizza Inn family."
To qualify for the incentive program, signed contracts and new unit fees must be received by June 28, 2009, and the restaurant must open within one year of the contract date. The incentive is being offered only in states where Pizza Inn is currently registered to offer franchises today.