Franchising

Happy Joe’s waiving franchise fees to attract first-time owners

Happy Joe's Pizza & Ice Cream has hired Tom Sacco as CEO and president. Provided

April 21, 2021

Iowa-based Happy Joe's Pizza & Ice Cream, which hired Tom Sacco as CEO and president last year, has launched major expansion efforts, opening two franchises in Urbandale and Cascade, Iowa, with plans to add locations this summer in St. Peters, Missouri, and Fond du Lac, Wisconsin.

"When you mention Happy Joe's to people in the Midwest, it stirs up a lot of emotion and always brings a smile," Sacco said. "We want more communities in this great country to be able to experience the spirit that is Happy Joe's. Our brand has so much to offer, from the high-quality, gourmet pizza we serve to the lasting memories created in our restaurants. I'm thrilled to be at the helm of such an inspiring company at such a transformational moment in time. I can't wait to see the progress we will continue to make."

Since Sacco joined the Happy Joe's team, the brand has streamlined royalties to create a more mutually beneficial business practice and recently introduced limited-time development incentives for new franchisees, according to the release. In an effort to attract restaurant-curious entrepreneurs, Sacco is also waiving the initial franchise fee, reducing royalties to 2% during the first year of operation and 4% during the second year of operation. Full royalties will not kick in until the 25th month of operation.

The company is also maximizing a strategy in which operators who have struggled or closed during COVID-19 may convert their existing concepts into a Happy Joe's. This enables franchisees to take on a lower build-out cost and quicker turnaround compared to building from the ground up. In most cases, the current conversion costs are offset by Happy Joe's franchise investment incentives, Sacco said.

"Happy Joe's is different from other franchisors in that we're functionally and financially sound, our franchisees are coming off a record year — in spite of the pandemic — and our brand nurtures an emotional connection with our guests that others simply can't replicate," Sacco said. "With the addition of franchise veteran Kat Davidson leading our franchise development efforts, we're looking forward to expanding more of our happy places to hundreds and hundreds of areas outside of the Midwest, all across the Sun Belt and small-town USA."

Founded in 1972 by Joe Whitty, Happy Joe's has eight company-owned and 34 franchises throughout the Midwest.