Pizza Inn (Nasdaq: PZZI) today announced a new development incentive program for new and existing franchisees that will make it easier to invest in a new Pizza Inn Buffet franchise under the current economic challenges. 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 franchise incentive program include 0 percent royalty for the first full year of operation and 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. Royalties paid are calculated as a percentage of gross sales. Pizza Inn’s 4 percent royalty rate is attractive when compared to other options in the industry, some of which charge as much as 6 percent of gross sales.
In addition, existing or new franchisees can take advantage of discounted franchise fees by signing up for the chains’ standard multi-unit restaurant
development agreement incentive. Multi-unit agreements under the program will be structured as follows:
- First Restaurant: $25,000
- Second Restaurant: $18,750
- Third Restaurant & More: $12,500 each
“This incentive program is one of the most competitive packages any chain has offered,” says Charlie Morrison, Pizza Inn president and CEO. “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. To learn more contact the Franchise Development
department at 1.800.284.3466 or email franchising@pizzainn.com.
