Franchise News
With financing tight and sales soft, brands like Firehouse Subs, Potbelly and Marco’s are using fee breaks, royalty holidays and cash to attract multi-unit operators and speed openings.
Restaurant chains are sweetening the pot to get new units open — and fast. As Restaurant Business Online reports, Firehouse Subs rolled out a 2026 development incentive that pays franchisees $75,000 in cash for opening one shop next year, or $100,000 per location if they commit to two or more. It’s an expansion of an earlier program that offered up to $100,000 for veterans and first responders.
They’re not alone. Potbelly is dangling discounted franchise fees and a 50 percent royalty cut for developers who agree to open at least 15 shops in eight years — a push that’s already attracted multi-unit operators in Atlanta and Texas. Marco’s Pizza is offering zero royalties for the first six months on multi-store deals, while other pizza and sandwich brands, from Papa Johns to Pizza Factory, have refreshed their incentive menus to nudge projects across the finish line.
Why now? The unit-economics math has gotten tougher. Financing remains tight, construction costs are stubborn and sales in several segments have cooled. Quick-service pizza sales grew by less than 1 percent last year; quick-service sandwich sales fell by more than 3 percent. In that environment, a check from the franchisor — or a break on fees and royalties — can be the difference between a signed lease and a stalled pipeline.
Competitive pressure is part of the story, too. Jersey Mike’s expanded units by 12 percent last year, setting a high bar for peers. Firehouse Subs, now part of Restaurant Brands International, grew units by 3 percent and is leaning on incentives to accelerate development and capture “white space” it believes is still available.
For the franchising industry, the impact cuts both ways. On the plus side, incentives lower early cash strain, speed up site selections and can attract larger, better-capitalized operators who can build in batches. The risk is that deals get done for the wrong reasons if incentives paper over weak trade areas or thin margins. Expect brands to keep sweetening offers while also tightening who qualifies — favoring multi-unit developers with a track record, disciplined real-estate strategies and enough liquidity to ride out slower ramps. In a tougher climate, the brands that pair thoughtful incentives with transparent economics — and hold the line on standards — are the ones most likely to turn today’s giveaways into tomorrow’s sustainable growth.
Read the original article here.
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