To offset the crisis of confidence in today’s economy, franchisors are offering discounts, money-back guarantees, and other financial incentives and stimuli to help interested franchise prospects take the final step to franchise ownership. As with any prospective franchise purchase, read the FDD for full details. As one franchisor noted on its website promoting its offer: “Of course, conditions apply.” Recent offers include the following:
Papa John’s–No Franchise Fee
Tied to its 25th anniversary, “Papa” John Schnatter is offering aspiring and existing franchisees an offer he hopes they can’t refuse: 1) no franchise fee ($25,000 value); 2) no royalty for 12 months; and 3) a $10,000 early opening award. The 25th Anniversary Development Incentive Program is valid for all approved franchisees who sign a development agreement before Dec. 27, 2009. “We see the current economy as an opportunity for growth,” says Jude Thompson, Papa John’s president and COO. “We know we have a franchise model that works, and we are excited to launch this new incentive program to potential business owners.”Café2U–Acceleration Package
With more than 80 franchises in Australia and nearly 50 in the U.K., this mobile coffee concept is promoting an Acceleration Package to ensure new franchisees hit the ground running from day one. “We guarantee that from the first day of trading, they will be taking home $500 a day for the next two weeks,” said Andy Simpkin, CEO of Café2U. The Acceleration Package takes four weeks: one week with a franchisee development manager, one in the classroom, and two in the new franchisee’s territory. Cafe2U also provides an income guarantee for the first two weeks, with a daily business schedule constructed with the assistance of a franchisee development manager. “We have brought in three highly experienced franchisee development managers who specialize in generating new business in tandem with the new franchisee,” said Simpkin.