Cici’s Launches Franchise Fee Incentive
CiCi’s Pizza is waiving its normal franchise fee for existing franchisees or managers willing to take on sagging stores that would otherwise shut down.
Over the next year, up to 25 restaurants of the company’s 640 locations may fall into that closed or about-to-close category, Craig Moore, president and chief executive of Coppell-based CiCi Enterprises LP, said Monday. The policy will be in force at least through 2009, the company said.
The fee for existing franchisees and managers averages about $25,000, Mr. Moore said. Franchisors charge upfront fees, in part to cover administrative costs.
Given the lost royalty payments if a restaurant shuts down and the cost of opening new ones, the company decided it was better to keep restaurants open if they have potential, Mr. Moore said.
The move comes as banks tighten up on credit, forcing many restaurant chains to pare back growth plans.
“With the economy the way it is, we’re trying to work with our existing guys,” said Mr. Moore, who launched the program a few weeks ago. More.
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