October 13, 2009 // Franchising.com // The Colony, TX – While many franchisors are pulling the plug on expansion, Pizza Inn (Nasdaq:PZZI) is defying recession-conservatism by offering a new development incentive program designed to increase domestic growth while offering enticing financing opportunities to franchisees otherwise discouraged by the current credit market. Pizza Inn has opened 7 new locations in the US and internationally since the fiscal year began in July.
Designed specifically to attract current operators in other franchise systems, as well as existing Pizza Inn franchisees, the incentive program offers a 50 percent reduction in the initial Franchise Fee from $25,000 to only $12,500, a 50 percent reduction in royalties for year one from 4 percent to 2 percent and the same 50 percent reduction in royalties for year two, with years three and beyond at the standard 4 percent. Pizza Inn is seeking single and multi-unit franchisees, as well as area developers in select regions of the country.
"While we are seeing positive signs of growth within our business, the development environment is still difficult for franchisees wanting to expand their business portfolios," said Charlie Morrison, CEO of Pizza Inn. "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."
The incentive program will be offered for a limited time, beginning October 1, 2009 and running until March 31, 2010. To qualify for the incentive program, signed agreements must be fully executed, franchise fees paid and the restaurant open within one year of the agreement. The incentive is being offered in states where Pizza Inn is currently registered to offer franchises today and is only available for new construction of buffet restaurants.
Pizza Inn's development incentive program comes on the heels of a previous initiative which ended in June 2009 and resulted in 13 new agreements during that time. The success of the initial program prompted Pizza Inn to launch their new incentive and provide affordable options for those looking to expand their business portfolios.
With more than 300 locations, Pizza Inn has benefited from America's increasing commitment to family-friendly dining, affordable pricing and freshly-made food items – all served up daily on the buffet . By offering consumers a variety of traditional and specialty pizzas, with its dough made fresh daily, as well as pastas, sandwiches and desserts, Pizza Inn has delighted consumers taste buds for more than 50 years.
"Despite the current economic climate, there are franchisees seeking opportunities outside or within their current concepts," added Madison Jobe, VP of Development of Pizza Inn. "The incentive, coupled with our brand recognition, quality food offerings and value oriented buffet will no doubt facilitate a transformation in the pizza marketplace and further enhance the brand nationwide."
Headquartered in The Colony, TX, Pizza Inn, Inc., is an international pizza chain featuring traditional and specialty pizzas, as well as freshly made pastas, sandwiches, and desserts. Founded in 1958, publicly traded Pizza Inn (Nasdaq: PZZI) franchises approximately 310 restaurants and directly owns and operates three restaurants.