Togo’s, a fast-casual sandwich shop, has announced two exciting incentive programs to encourage rapid franchise growth in 2020. The new offerings include Togo’s Development Incentive Program for first-time franchisees joining the team and the Seasoned Operator Incentive Program for established franchisees looking to expand their portfolio.
“We are offering these two special development incentive programs to candidates who are as excited about the future of the Togo’s brand as we are,” says Glenn Lunde, CEO. “Togo’s is an organization that’s been successful for a very long time and we want to support our franchise candidates in every way we can during our monumental growth phase.”
Since starting in San Jose, California in 1971, the West Coast leader in high quality, truly delicious sandwiches has grown to include over 200 locations open or under development. While Togo’s has always stayed ‘true to the sandwich,’ the fast-casual brand’s recent ‘ 3.0’ upgrade has firmly established them as exciting and relevant to the next generation of fans. The transformation started earlier this year with the remodel of five California stores and will continue to spread across the rest of the system in 2020 and beyond.
Now, the two incentive programs will help bring new franchisees to the refreshed concept and also encourage existing franchisees to expand.
The Development Incentive Program
A limited number of qualified candidates who enter into a franchise agreement and/or a multi-unit agreement with Togo’s will be eligible for the Development Incentive Program. At this time, the Development Incentive Program is only offered with respect to the first 10 franchise agreements that are executed with qualified candidates by April 1, 2020.
“Instead of the usual $30,000 fee, franchisees who are a part of the Development Incentive Program will pay a franchise fee of $15,000 if they are a new Togo’s franchisee, or $7,500 if they are an existing Togo’s franchisee and benefit from a 50 percent reduction in royalties for the first 24 months of operation for each new restaurant they open,” says John Dyer, Director of Franchise Sales and Real Estate. “We want to support the growth of all Togo’s franchisees, both established and new.”
In each case, in order to receive the benefits under the Development Incentive Program, franchisees must sign a lease for their first Togo’s location to be developed no later than December 31, 2020.
The Seasoned Operator Incentive Program
“To support experienced entrepreneurs who are looking to expand their portfolios, we are also offering a special incentive program to a limited number of qualified seasoned operators of other franchise concepts,” adds Dyer. “At this time, the Seasoned Operator Incentive Program is only offered with respect to the first two multi-unit agreements executed with qualified candidates by April 1, 2020.”
In order to participate in the Seasoned Operator Incentive Program, franchisees must have held a controlling ownership interest in multiple franchised restaurants, retail or service businesses for at least five years within the last 10-year-period. The franchisee must also have a proven track record of the successful development and operation of multiple franchised businesses.
For those who qualify and enter into a multi-unit agreement with Togo’s for the development of at least three restaurants, the initial franchise fee will only be $15,000 under the first franchise agreement and $7,500 under each additional agreement. Additionally, they will receive reduced royalties for the first four years of operation for each restaurant opened under the agreement. The royalties under this incentive start at 1 percent for the first 12 months and increase by 1 percent every 12 months until reaching the standard fee structure of 5 percent in year five. In order to receive the benefits under the Seasoned Operator Incentive Program, franchisees must sign a lease for their first Togo’s location to be developed no later than December 31, 2020.
As the brand continues this year of significant change with the integration of a Speed Line Kitchen, self-ordering kiosk technology and fresh menu offerings, Togo’s recognizes that unparalleled franchisee support is an integral aspect of successful innovation in 2020. By being a resource for its franchise system, Togo’s will continue to remain far above the competition for years to come.
“There is a lot of energy surrounding the brand right now and things are moving in a great direction,” says Lunde. “With this exciting team and strategy in place, we can’t wait to partner with new and established franchisees to take Togo’s to the next level.”
The startup costs for a Togo’s franchise range from $274,000 to $508,700.
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