Pincho Factory to Disrupt Traditional Franchise Model with a Transparent Approach
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Pincho Factory to Disrupt Traditional Franchise Model with a Transparent Approach

October 17, 2014 // // Miami, Fla. - Pincho Factory, the popular fast casual eatery in Miami, known for its award-winning, creative burgers and tasty pinchos (Spanish for grilled skewers), is ready for franchising. After much demand, the founders have decided that it was time to accept the right franchisees as a way to continue growing. The team has defined what they're looking for, and qualified candidates would be interested to know that Pincho Factory is shaking up the industry by rejecting the old way of doing business and infusing a fresh approach to the franchise model, as it pertains to marketing, training and growth.

"We took a very hard look at the industry, and found that the biggest pain points that franchisees encounter are issues with marketing fees and product markups. We solved one and got rid of the other," says Nedal Ahmad, CEO. The team has developed what they call the "no nickel and dime zone", which means that there will be no hidden costs; everything will be transparent. A lot of franchises tend to charge new owners every step of the way, whether it's on equipment, ordering of food or paper goods. Those additional charges could really eat into the bottom line, typically hurting the business, which is why they dropped it from their franchising model all together. Their goal was to treat franchisees as true partners, and not glorified employees. "We didn't feel entitled to a percentage of the franchisees purchases in exchange for a few weeks of negotiations with our suppliers. The more tools we give our partners to succeed, the more successful we are as a brand and company" said Nedal.

What started as a BBQ joke among friends and family, quickly turned into a full-fledged business. The restaurant garnered a pretty impressive number of awards, including best Specialty Burger for three consecutive years, best French fries and Best Hotdog. The Travel Channel took notice and featured the establishment in Burger Land with George Motz, and earlier this year, they were featured on the TODAY Show with Kathie Lee Gifford and Hoda Kotb. They have managed to create a cult-like following that money can't buy.

"We've enjoyed great success over the last four years, because of our culture and our loyal guests," says chief marketing officer, Otto Othman. "When we started we only had $77,000 and a dream. Our goal was to have great quality food with awesome customer service, and we stuck to that." To achieve that same level of success, training director Adrian Sanchez has developed materials that will help new owners emulate the culture. Training is offered at their stores and on location, and they're now integrating a lot of technology to be able to train on a larger scale. During the early stages, when a customer made a suggestion on the menu, more often than none, they would listen. That type of interaction molded them into what they've become today, and to date, has secured more than 30,000 die-hard followers.

Pincho's founders believed that stores should not cannibalize on each other. One way of avoiding that was to protect every store with a six mile radius. In other words, people will not see a store on every block and every corner. "We want to grow, but we want to make sure that every store is healthy and successful," says Nizar Ahmad, Pincho Factory's COO. Visibility is very important, but "We don't do a lot of bloated traditional advertising, and we don't plan to start any time soon," said Ahmad. Instead, they will charge new owners a 2% marketing fee that will go back to the community of the franchise store, which is quite honestly another secret to their success. When the franchisee goes out to support a charity event, conduct a sampling or compete at a food festival, those costs will be covered by their marketing fee. Franchisees will have access to their marketing fees account and will get regular reports on how that money is being spent. In addition, they will have access to Othman's fifteen plus years of marketing experience, which serves as a cornerstone of success for this company. It was Othman's thinking that lead to the practice of not blowing money on TV ads and not competing with national brands at their level. Instead, they found it easier to connect with the community via a more grassroots effort. As a result, they firmly believed that their company's efforts would eat anybody's marketing budget for breakfast.

Pincho Factory's franchise model is quite straightforward. They will charge a 5% fee on royalties, a 2% fee on marketing and a $20,000 upfront fee when new owners sign up. For every franchise sold, they will donate a portion to Feeding South Florida and its nationwide partners. Franchisees will receive all of the costs and contracts that have been negotiated in the past on the price of goods, so no side deals will be made via third party purchasing.

About Pincho Factory

For more information regarding franchising, please contact Pincho Factory currently has two locations at 9860 SW 40th Street, Miami, Fl 33165 and 30 Giralda Avenue, Coral Gables, Fl 33134. The third location is currently under construction in Hialeah, Florida. Visit Pincho Factory at, and follow them on social media at and @PinchoFactory on Twitter and Instagram.

SOURCE Pincho Factory

Media Contact:

Dina Allende
Clique PR & Marketing



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