Togo’s Eateries Inc. announced it has signed a development agreement with a new franchise group to open three restaurants in the greater Phoenix area. The franchisees will develop three restaurants in Ahwatukee, Tempe, and Avondale, Arizona over the next two to three years. This new development is part of the sandwich chain’s plan to grow its footprint in new markets in Arizona and throughout the West.

“We’re thrilled to continue our expansion in Arizona and provide our franchisees with the best franchise opportunity in the sandwich category,” says Tony Gioia, chairman and CEO of Togo’s Holdings LLC. “With the recent launch of our royalty incentive program for new multi-unit franchise agreements, Togo’s is poised for tremendous growth over the coming years.”

First-time franchisees George Ayoub, Abdou Ayoub, and Ramzi Georges are planning to open their first restaurant in Ahwatukee in first quarter of 2014.

“We’re excited to bring Togo’s big, fresh and meaty sandwiches to the Phoenix market, and look forward to the opening of our restaurants over the next several years,” says George Ayoub. “By taking advantage of the reduced royalties through the brand’s incentive program, we were able to jumpstart the growth of our business. We’re confident that Togo’s will bring a fresh, new restaurant experience to the area.”

Togo’s has one location in Gilbert, Arizona, a second opening in Tempe in the next month, and seven additional franchised units in development in the state, including two in Yuma, Arizona, that are scheduled to open in 2014 and 2015.

Togo’s recently launched a multi-unit franchise development incentive program to drive expansion throughout the West. Both new and existing franchisees who sign a new agreement for three or more locations will receive reduced royalty fees for the first two years for each new restaurant that is developed in Washington, Oregon, Idaho, Utah, Colorado, Nevada, and Arizona. 

Togo’s, which has experienced 12 consecutive quarters of same-store sales increases, is seeking multi-unit franchisees. Last year, Togo’s announced the formation of a franchisee-lending program to fuel development. Through this fund, both new and existing Togo’s franchisees will benefit from $10 million for remodels and transfers, as well as $5 million to build new restaurants.

At Togo’s, traditional restaurants experienced average unit sales in excess of $633,000, with 50 percent averaging over $799,000 and 25 percent averaging over $930,000. The brand requires candidates possess liquidity of $150,000 for a single restaurant and a net worth of $300,000. Area developers must possess liquidity of $450,000 and net worth of $900,000. Incentives are available for qualified franchisees interested in opening three or more restaurants.

Denise Lee Yohn: QSR's Marketing Guru, Growth, News, Togo's