Pepper Palace announces first 3 franchise agreements

Things are getting spicier in Canada, thanks to one brand’s franchise debut.

Pepper Palace, a specialty hot sauce and spice retailer with over 70 North American locations, announced Tuesday the award of its first franchise agreements, which will bring three new stores to the province of Ontario.

The deals will see Pepper Palaces open in Toronto’s Distillery District, the Fallsview Casino resort in Niagara Falls, and Blue Mountain Village, near Ontario’s biggest ski resort.

Franchise development plans

“As a former licensee myself, this moment is especially exciting. I understand what it feels like to step into a brand, believe in the model, and commit to building something locally. From a franchise development perspective, awarding our first franchise agreements is a major step forward and the beginning of a very exciting chapter,” said Tavis Scholz, Pepper Palace’s Vice President of Franchise Development & Real Estate.

While the first three franchise Pepper Palaces will open north of the border, the brand also hopes to bring on franchisees in the United States, where they have more than 100 territories available.

Pepper Palace first launched in 1989 as a kiosk in Appleton, Wisconsin’s Fox River Mall. The successful kiosk grew into two inline retail locations in Wisconsin before founders Craig and Tanya Migawa relocated to Gatlinburg, Tennessee in 1997 to open what ultimately grew into the world’s largest spice-themed specialty retail location.

Company history and growth

In 2002, the Migawas opened a second store in Gatlinburg and expanded into Myrtle Beach, South Carolina, St. Augustine Florida, and Branson, Missouri. Ten years later, in 2012, they opened a dedicated kitchen facility, fundamentally changing their model by bringing production entirely in-house. That kicked off a rapid expansion that grew the brand to the network of 70-plus locations it is today.

“Franchising is an exciting next step for Pepper Palace, but we want to grow the right way. The first franchise awards reflects the strength of the brand our team has built and the opportunity ahead as we bring Pepper Palace into new markets with the same energy, quality, and experience our customers know,” said CEO Morten Jorgensen.

Pepper Palace says their new franchise system works well for operators because it pairs simple store design and efficient staffing with a unique retail experience and products their loyal customers can’t get anywhere else.