Pepper Palace Awards Its First Franchise Agreements

June 12, 2026 // Franchising.com // SEVIERVILLE, TN — Pepper Palace today announced the award of its first franchise agreements.

Headquartered in Sevierville, TN and operating over 70 locations across North America, Pepper Palace has built its reputation in high-traffic, experience-driven environments. For more than three decades, its interactive, sampling-driven stores have turned casual shoppers into committed 'chiliheads.' The franchise program represents the next step in extending that model.

"Franchising is an exciting next step for Pepper Palace, but we want to grow the right way. The first franchise awards reflects the strength of the brand our team has built and the opportunity ahead as we bring Pepper Palace into new markets with the same energy, quality, and experience our customers know." — Morten Jorgensen, CEO, Pepper Palace

What makes the model work for franchise operators is the product. Pepper Palace's sauces, seasonings, and condiments span every heat level and flavor profile and are entirely proprietary, exclusive to its stores and unavailable anywhere else. That, paired with a simple store design and a proven floor experience, gives operators a clear playbook and a built-in point of difference from day one.

The initial agreements are part of Pepper Palace's franchise program, designed for single and multi-unit operators in the U.S. and Canada.

"As a former licensee myself, this moment is especially exciting. I understand what it feels like to step into a brand, believe in the model, and commit to building something locally. From a franchise development perspective, awarding our first franchise agreements is a major step forward and the beginning of a very exciting chapter." — Tavis Scholz, VP of Franchise Development & Real Estate, Pepper Palace

Pepper Palace started as a single storefront in Gatlinburg, TN in 1989. Thirty-five years later, it has grown into a brand with its own manufacturing operation, a loyal national following, and a franchise program built on the same principle that started it all: destination retail is a natural fit for a brand whose in-store experience is the product.

SOURCE Pepper Palace

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