COPPELL Texas CiCi’s Pizza said Monday it would waive franchise fees through next year on any closed unit that is acquired and reopened by another franchisee within the system.
The franchisor described the offer as a way of helping successful franchisees expand during the current credit crunch, when little capital is available from traditional financing sources. The company said the move also rewards loyal franchisees and helps strengthen the brand.
CiCi's normally charges existing franchisees $25,000 for subsequent units. The company has 245 franchisees in its system.
“We don’t believe an inability to obtain a loan during a time when credit markets are tighter than they’ve been in recent memory should deter an otherwise successful franchisee from building his or her business by buying and reopening closed CiCi’s stores in great locations,” said Craig Moore, CiCi’s president and chief executive.
CiCi’s said five shuttered stores are currently available under the program, though the company plans to offer the fee waiver through 2009.
The pizza-buffet chain, founded in 1985, has 650 restaurants in 30 states.