From now until March 31, 2010, Texas-based Pizza Inn will reduce its royalty fee by 50 percent for two years, as well as its franchise fee—from $25,000 to $12,500. Pizza Inn’s chief executive, Charlie Morrison, said although Pizza Inn has experienced growth during the economic downturn, the current environment has hindered many franchisees that wish to expand.
"This incentive will allow us to aggressively recruit new candidates to become Pizza Inn franchisees while offering additional incentives to current franchisees looking to continue or reenergize their growth plans," said Morrison.
In order to qualify for the program, a development agreement must be signed, with its duties performed and the franchise fee paid. Also, the franchisee must have their unit opened within one year their agreement.
This is not the first time the 300 unit Pizza Inn has offered a reduced fees package to attract new franchisees. Last June, the chain concluded a similar program that resulted in the signing of 13 new agreements. Pizza Inn’s incentive package is representative of a number of similar programs that franchises such as Great Clips, Fresh Coat and 7-Eleven are using to attract new investors into their systems.
