Restaurant operators are using incentives to encourage their franchisees to keep growing, despite the struggling economy.
Companies such as Papa John’s International Inc. and Denny’s Corp. are establishing lending programs, cutting back royalty fees and assisting their franchisees in other ways to push growth in new markets and help those in challenged ones, even if it hurts the company’s earnings in the short term.
Don Graham, head of development for Papa John’s, says it is tough, especially for small franchisees, to secure the proper financing for expanding in this economy. It also has become increasingly competitive among restaurant chains to…