US Franchises Court Franchisees with Discounts

It’s tough out there, between global economic instability, countries slipping in and out of recession.


US Franchises Court Franchisees with Discounts

Franchise news reports that getting finance is tougher than ever, franchisors have had to start making concessions in order to keep growing their footprints.

Discounts all round

In the US, many aspiring franchisees just aren’t able to scrape together the money they need, so offering time-limited special deals is the new trend for landing the next crop of franchisees: Pizza franchise, Papa John’s, waives the $25 000 franchise fee and all royalties for the first 18 months if franchisees sign up in 2013; Dunkin’ Donuts is offering reduced royalty payments for three years and $10 000 in marketing-fund credit to promote your store if you sign up before the end of 2012. Quick service Italian restaurant, Fazoli’s, has also jumped on the discount bandwagon by cutting the franchise fee by $10 000 and waiving the first $20 000 in royalties.

While this is most likely a temporary measure (after all, franchise fees and royalties are there for a reason), a price war has broken out on initial franchise costs, and a franchisor that doesn’t offer a sign-up discount in some form is the exception to the norm.

Tracy Lee Nicol
About the Author
Tracy-Lee Nicol is the managing editor of Franchise Zone Magazine and deputy editor of Entrepreneur Magazine. She studied her Masters degree in Art History and Visual Culture at Rhodes University and spent the next two years working and travelling in Asia. Her love of people, business and teaching is reflected in telling the stories of entrepreneurs, franchisees and franchisors, inspiring others to take the leap to being their own boss and bringing about positive change in South Africa.

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