While many franchisors are pulling the plug on expansion, Pizza Inn is offering a new development incentive program designed to increase domestic growth while offering financing opportunities to franchisees otherwise discouraged by the current credit market.
Designed specifically to attract current operators in other franchise systems, the incentive program offers a 50 percent reduction in the initial franchise fee (from $25,000 to $12,500), a 50 percent reduction in royalties for year one (from 4 percent to 2 percent) and the same 50 percent reduction in royalties for year two, with years three and beyond at the standard 4 percent. Pizza Inn is seeking single and multiunit franchisees, as well as area developers in select regions of the country.
"While we are seeing positive signs of growth within our business, the development environment is still difficult for franchisees wanting to expand their business portfolios," said Charlie Morrison, CEO of Pizza Inn. "This incentive will allow us to aggressively recruit new candidates to become Pizza Inn franchisees while offering additional incentives to current franchisees looking to continue or reenergize their growth plans."
The incentive program will be offered for a limited time, beginning Oct. 1, 2009, and running until March 31, 2010. To qualify, signed agreements must be fully executed, franchise fees paid and the restaurant open within one year of the agreement. The incentive is being offered in states where Pizza Inn is currently registered to offer franchises today and is available only for new construction of buffet restaurants.
Pizza Inn's development incentive program comes on the heels of a previous initiative that ended in June 2009 and resulted in 13 new agreements.
Pizza Inn has opened seven new locations in the United States and internationally since the fiscal year began in July.