Within the struggling US economy a number of their largest restaurant chains are starting to establish incentives to ensure their franchise chains keep growing. There has been a head office shift from short term profits to move towards push growth into new regions and markets but also support those who are struggling.
There has been a number of moves such as cutting back royalty fees, establishing franchise lending programs to ensure the franchisees have the required finance to continue expanding. The typical food franchise operators that are jumping onboard with these ideas are the ones that experience strong revenue from new store openings and have more certainty that these new locations will succeed.
There are a number of incentive programs being offered by Papa John’s and Denny’s which include cutting franchise fees, providing equipment and discounts on purchasing stock via their official channels. It appears that Denny’s is the most aggressive in it’s growth plans over the next 5 to 6 years with around 75 to 100 new Denny’s locations being opened all supported by it’s new $100 million lending pool.
Not to be left out Wendy’s, Jack in the Box and drive-in operator SONIC have all began to start offering incentives for their franchisees who are undertaking request such as implementing new breakfast menus and developing new locations.