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Fazoli's and Denny's are just two brands that are working to make operations easier for franchisees during the difficult times brought on by the Covid-19 pandemic.
Last week, Fazoli's announced a conversion program featuring zero down payment, zero franchise fees, and zero royalty fees for the first year. Under the plan, franchisees can sign a short five-year term, versus the typical 15-year commitment. The move is meant to encourage challenged QSR or fast-casual restaurant operators to convert their existing shells into a Fazoli's. The QSR brand has relaxed many of its conversion requirements so operators can get a 2,000- to 3,500-square-foot restaurant open for less than $350,000.
"This is the first time in our brand's history that we have ever launched a program this aggressive," said Fazoli's CEO Carl Howard. "With this program, we are providing a low-risk, fast-track path to become part of the Fazoli's Franchise Family."
Meanwhile, Denny's has announced it is waiving $3 million in royalty fees this quarter in an effort to help franchisees make it through the pandemic. The brand has also negotiated rent abatements and deferrals for 77% of its locations, passing along the benefits where its sites are sub-leased to franchisees.
The family dining brand says 99% of its franchisees have received federal assistance loans through the Paycheck Protection Program. More than 1,200 locations have resumed dine-in service but most of those are operating at 60% or less of their pre-Covid-19 seating capacities.