News

Fazoli's extends franchise incentives

Year to date, franchise unit sales are up 4.9 percent on a 3.7 percent increase in traffic. Franchisees have reported sales growth in 69 of the last 71 months.

March 23, 2016

Amid strong interest from potential franchisees, robust same-store sales and more geographic expansion, Fazoli's is extending its franchise incentive program for new operators, said Carl Howard, president and CEO.

"We have not seen this much interest among prospective franchisees since the brand's early years," he said.

In February, franchisees reported a 9.3 percent same-store sales increase on a 6.3 percent jump in traffic. Year to date, franchise unit sales are up 4.9 percent on a 3.7 percent increase in traffic. Franchisees have reported sales growth in 69 of the last 71 months, according to a company press release.

"We are thrilled with the caliber of operators who are considering adding Fazoli's to their portfolios," said Howard, who added there is strong interest from a wide variety of operators, including those in the convenience store market. "We understand operators need time to carefully analyze investments, so we are extending the incentives to ensure no one gets left out."

New franchisee incentives

New franchisees are eligible for discounts of up to $20,000 off the initial $30,000 franchise fee. Royalties have been cut to 2 percent from 4 percent for the first year, and to 3 percent for the second year. Vendor fees also will be discounted for the first 12 months, according to the release.

Howard said the incentive program has ignited franchise sales, leading to several development deals. Using the incentives, franchisees Allen Peake and Mike Chumbley recently opened Fazoli's all-new prototype building in Macon, Georgia. This week, Fazoli's entered the Montgomery, Alabama market with franchisees Mital, Diven, Lisa and Rakesh Patel. They also operate two Schlotzsky's and two Bruster's Real Ice Cream franchises in Montgomery. 

Fazoli's added five franchised units last year and has plans to open up to 12 this year.