Pizza Marketing Quarterly:

According to a press release, To help current and potential franchisees overcome the credit crunch, Marco’s Pizza (Marco’s Franchising, LLC) has created several innovative financing tools.

To help with store down payments, Marco’s introduced a private equity fund that can invest $50,000 to $100,000 per store. The company is also developing a $50,000,000 private equity fund that would finance up to $250,000 of a new store’s costs, depending upon the franchisee’s investment. Those eligible for both programs must either have proven experience in the franchised food service industry or be current Marco’s Pizza franchisees.

“Marco’s Pizza’s year-to-date growth is outstanding given the tight credit environment,” said Marco’s CEO Jack Butorac. The company achieved more than ten percent chain growth in the first half of 2009. “These financing tools were recently introduced to help increase Marco’s growth rate through franchisee candidates and expanding franchisees facing credit challenges.”

“The due diligence of our credit providers is impressive and, I believe, a major validation of Marco’s business,” CFO Ken Switzer added.

Marco’s also offers franchisees the opportunity to lease complete stores through its captive leasing company. The program can provide up to $200,000 in financing for a new store. Marco’s is also developing a new leasing program that can provide up to $125,000 of equipment-only financing per store.