Restaurant chains like Popeye, KFC, Firehouse Subs and Rally’s Burger have stepped up incentive programs to lure franchisees to take the risk and open their own businesses, as reported in the Los Angeles Times. Popeyes offers to waive its $30,000 franchise fee for new owners and lowered royalty fees from 5% of revenue to 2% for the first year. But franchisees are advised to take caution as success will take time.
Fast-food chain Popeyes Louisiana Kitchen has 75 restaurants in Los Angeles, Orange and Riverside counties, and it plans to open 24 more despite the lagging economy.
Chicken-centric Popeyes, however, doesn’t plan on launching the new outlets on its own dime. It’s seeking franchisees — would-be entrepreneurs willing to take on the expense and risk of opening their own businesses.
“We just don’t have the resources to build everywhere ourselves,” said Greg Vojnovic, vice president of development of Popeyes, owned by AFC Enterprises Inc.
Restaurant chain franchising is on a slow but steady increase, and not just at Popeyes.
Yum Brands Inc.