Franchising

Fazoli's opening 100 units in 2022

Provided

May 25, 2021

Although Kentucky-based Fazoli's broke its own development record in March when it ended the fiscal year with 20 franchise agreements calling for 50 locations, the chain is planning to double that over the next fiscal year by signing 40 deals to open 100 locations before the end of 2022, a news release said.

To help achieve the goal, Fazoli's has hired David Boatright as director of franchise sales, where he'll work with Steve Bailey, the chain's senior director of Franchise Sales. Boatright held similar roles at Bojangles and Front Burner Brands.

"Fazoli's is in the 99th percentile of all operating brands in the entire industry, and prospective franchisees are recognizing our success," CEO Carl Howard said in the release. "Markets are selling out quickly. In March alone, we signed 10 new groups for 23 new locations, and we are on pace to open 15 new locations this calendar year and 20-plus locations for the next several years. We've built an incredible franchise team with a proven track record of success. We have never been in a better position for growth of this magnitude."

Fazoli's is targeting development in new markets throughout Arizona, Nevada and Pennsylvania, but is also looking to grow its footprint in Arkansas, Alabama, California, Florida, Mississippi, North and South Carolina, Tennessee and Texas.

Since last June 16, new and four current franchisees have taken advantage of Fazoli's 2020 Franchise Incentive Program, which allows challenged quick-service or fast casual restaurant operators to convert their existing companies into a Fazoli's. So far for FY22, Fazoli's is on target to complete 11 conversions with more in the pipeline. With the aggressive incentive strategy, franchisees can sign a five-year term versus the typical 15-year commitment, with zero down payment, zero franchise fees and zero royalty fees in the first year. Fazoli's also relaxed many of its conversion requirements so operators can get a 2,000- to 3,500-square-foot restaurant open for under $350,000, Howard said.

Additionally, Fazoli's has developed three prototypes designed to capitalize on its surge in off-premise revenue. A 1,700-square-foot double drive-thru prototype, as well as a 2,200- and 2,500-square-foot prototype, are in the works to provide prospective franchisees with cost-effective solutions to serve the brand's Italian.

"The success of our conversion strategy and the zero franchise free, zero royalty fee in year one has been a driving force in our tremendous growth," Howard said. "The incredible fact is many of these conversions are being done for under $350,000 and some for under $300,000 and they can be open in 90 days. When you add up our exceptional sales numbers and unmatched conversion strategy, we have the winning franchise formula."

Founded in 1988, Fazoli'soperates nearly 220 restaurants and made the 2021 list of Fast Casual Top 100 Movers & Shakers.