Following a fiscal year that shattered franchise development records, Fazoli’s is taking its expansion strategy to the next level with its most aggressive goal yet.
Fazoli’s ended its fiscal year in March, with a record 20 new franchise agreements to develop 50 locations, exceeding the most agreements Fazoli’s had signed in a single year in its 33-year history. Now, Fazoli’s aims to double that record by signing 40 new franchisees to add 100 locations to its pipeline this fiscal year.
To help achieve its biggest growth push in brand history, Fazoli’s CEO Carl Howard announced today that the company has welcomed David Boatright as its new director of franchise sales. In this position, Boatright will work alongside Senior Director of Franchise Sales Steve Bailey to bring highly qualified new franchisees to the brand.
“Fazoli’s is in the 99th percentile of all operating brands in the entire industry, and prospective franchisees are recognizing our success,” says CEO Carl Howard. “Markets are selling out quickly. In March alone, we signed 10 new groups for 23 new locations, and we are on pace to open 15 new locations this calendar year and 20-plus locations for the next several years. We’ve built an incredible franchise team with a proven track record of success. We have never been in a better position for growth of this magnitude.”
Fazoli’s is targeting development in new markets throughout Arizona, Nevada and Pennsylvania. The renowned, Lexington-based brand is also looking to grow its footprint in Arkansas, Alabama, California, Florida, Mississippi, North and South Carolina, Tennessee and Texas.
Since last June, 16 new and four current franchisees have taken advantage of Fazoli’s unrivaled 2020 Franchise Incentive Program. Offering the industry’s leading conversion incentive, the program encourages challenged quick-service or fast-casual restaurant operators to convert their existing shells into a Fazoli’s. So far for FY22, Fazoli’s is on target to complete 11 conversions, with more in the pipeline. With the aggressive incentive strategy, franchisees can sign a short five-year term, versus the typical 15-year commitment, with zero down payment, zero franchise fees and zero royalty fees in the first year. Fazoli’s also relaxed many of its conversion requirements so operators can get a 2,000- to 3,500-square-foot restaurant open for under $350,000.
Additionally, Fazoli’s developed three new prototypes designed to capitalize on its unprecedented surge in off-premise revenue. A new 1,700 double drive-thru prototype, and a 2,200- and 2,500-square-foot prototype are in the works to provide prospective franchisees with the most cost-effective solutions to serve the brand’s premium Italian fare while delivering the best bottom line.
“The success of our conversion strategy and the zero franchise free, zero royalty fee in year one has been a driving force in our tremendous growth,” Howard says. “The incredible fact is many of these conversions are being done for under $350,000 and some for under $300,000 and they can be open in 90 days. When you add up our exceptional sales numbers and unmatched conversion strategy, we have the winning franchise formula.”