Industry News | October 16, 2013
Fazoli's Signs Development Agreement for Kentucky
Fazoli's announced it recently signed another development agreement. Dan Markwell of Employer Consulting LLC will open restaurants in Morehead, Mt. Sterling, and Maysville, Kentucky. So far this year, Fazoli's has secured commitments from new and existing franchisees calling for at least nine new locations. Including Markwell's Kentucky development and previously announced locations near Indianapolis; Dubuque, Iowa; and Glenwood Springs, Colorado, Fazoli’s is looking to sign agreements for the development of more than 15 additional restaurants within the coming months.
"Fazoli’s is a reemerging fast-casual brand that has positioned itself for growth, and we think the time is right to leverage this opportunity in our communities," says Dan Markwell. "With its current momentum anchored by strong leadership, unique market position and a focus on being best in brand, the future Fazoli’s looks very promising."
Markwell is a commercial real estate developer and owner of Trademark Insurance & Investments. He and his family live in Morehead, Kentucky.
According to Fazoli's president and CEO Carl Howard, the interest among potential franchisees is being driven by the brand's turnaround, especially the recent surge in same-store sales growth at franchised units. "The Fazoli's franchise system has enthusiastically embraced our strategy to rebuild the brand, and it is paying off," Howard says.
Franchisees reported positive sales growth for 40 of the last 42 months. In September, the Fazoli's franchise system reported a positive top line growth of 5.7 percent, which is a two-year growth of 8.2 percent. Rob Hearden, president of the Fazoli’s Franchise Association, is seeing similar results in his locations. "The brand has hit its stride in both sales and franchise growth,” he says. “The franchise community is experiencing renewed excitement about the future."
The chain's total unit count is growing for the first time in a decade. "I strongly believe the Fazoli's brand is hitting on all cylinders, and we should see the size of the chain growing by 10 to 15 percent in the short-term," Howard said. "These new agreements and our sales results are providing tremendous momentum."
This post previously reported that Fazoli's had signed an agreement for Montana. We regret the error.
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