Salsarita’s announced a new growth incentive program for new and existing franchisees in 2014 and 2015. The company will offer new owners and existing franchisees who are interested in opening a new, traditional location a reduced annual royalty rate of 3 percent for the 2014 fiscal year and 4 percent for the 2015 fiscal year. The normal royalty rate of 5 percent will resume in 2016.
“We’ve spent the last year revamping the menu, systems and operations of Salsarita’s and are planning for a huge growth year in 2014,” says Phil Friedman, Salsarita’s CEO. “Due to the growing excitement and significant interest we’ve received from existing and new franchisees about wanting to grow the brand, we developed this incentive plan to encourage their growth opportunities by providing additional support. Our goal is to give our franchisees more confidence to move forward with new stores while allowing them to hold on to and invest their capital more strategically in that new restaurant.”
The idea for the incentive came together from conversations with existing franchisees and prospective franchisees who were cautious about investing new capital with the uncertainties in the economy. Chris Bailey, vice president of new business development for Salsarita’s, saw the opportunity to create an incentive program that would benefit both present franchisees and new franchisees alike, while complimenting the company’s overall 2014 growth plan.
That growth plan is being overseen by Friedman, a franchising veteran and Salsarita’s CEO, and also includes a new restaurant prototype and targeting existing territories for further expansion. The new prototype will debut in a company-owned store in early second quarter, then in its first franchised location in Southaven, Mississippi, in mid-2014. Salsarita’s already has plans for opening at least one more company-owned location in the Carolinas as well as at least 8-10 new franchise restaurants, before the end of the year.
“This program is obviously meaningful to me as I get ready to open a new location in Longview, Texas, but it also demonstrates to me that our franchisor understands the challenges we face as franchisees and is willing to invest in our shared success,” say Earl Wilmeth, franchise owner in Tyler, Texas.
Bill Gibson, a franchise owner in Lexington, Kentucky, and Mohammad Agha and Cayce Barton, franchisees in Plano, Texas, agree with Wilmeth. “As new franchisees in the Salsarita’s brand it’s this understanding and willingness to work with us that influenced our decision to join the Salsarita’s franchise system in the first place,” Gibson says.