Pizza Inn Unveils Development Incentive Program for Existing and Prospective Franchisees

The benefits of the franchise incentive program include 0% royalty for the first full year of operation and 2% royalty for the second full year of operation. The royalty for the remainder of the franchise agreement is 4% of gross sales. Royalties paid are calculated as a percentage of gross sales. Pizza Inn's 4% royalty rate is attractive when compared to other options in the industry, some of which charge as much as 6% of gross sales. In addition, existing or new franchisees can take advantage of discounted franchise fees by signing up for the chains' standard multi-unit restaurant development agreement incentive. Multi-unit agreements under the program will be structured as follows:

First Restaurant $25,000

Second Restaurant $18,750

Third Restaurant & More $12,500

Pizza Inn officials see the new incentive program as an ideal plan to maximize the potential for domestic growth of its new buffet prototype restaurant, but it also offers some flexible alternatives for franchisees who may be discouraged by the current credit crisis.

Pizza Inn President and Chief Executive Officer Charlie Morrison said, 'This incentive program is one of the most competitive packages any chain has offered. We recognize that the existing economic environment will make it difficult for existing and new prospects interested in investing in the Pizza Inn brand to obtain financing. We anticipate that lenders will look favorably on our offer in their decision to provide funding for these prospects to pursue their desire to be a part of the Pizza Inn family.'

The new franchise incentive program is the latest in a string of successful announcements since January 1, 2009, for Pizza Inn. The chain heralded the honor of being named 2008 Pizza Chain of the Year by PizzaMarketplace.com. 2008 was a milestone year for Pizza Inn, as it posted six consecutive quarters of same store sales, celebrated its 50th anniversary, reintroduced its beloved mascot JoJo the Pizza Man, and opened a successful new buffet prototype restaurant in Denton, TX.

To qualify for the incentive program, signed contracts and new unit fees must be received by June 28, 2009, and the restaurant must open within one year of the contract date. The incentive is being offered only in states where Pizza Inn is currently registered to offer franchises today.


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