---
title: "Franchise Incentive Programs On The Rise"
url: https://burnaze.com/article/e5cee52b-8360-4466-96ca-61cf4b253e71
source: "Franchising.com"
original_url: https://www.franchising.com/articles/franchise_incentive_programs_on_the_rise.html
author: "Multi-Unit Franchisee"
category: "Restaurants"
industry: "Restaurants"
published: 2020-06-24T09:00:00.000Z
modified: 2026-11-01T02:34:49.912Z
image: https://imgs.franchising.com/art/articles/5420_plate.jpg
---

# Franchise Incentive Programs On The Rise

**TL;DR:** Fazoli's and Denny's have introduced franchise incentive programs to support operators during the COVID-19 pandemic. Fazoli's offers a conversion program with zero down payment, franchise fees, and royalty fees for the first year, while Denny's is waiving $3 million in royalty fees this quarter.

*By Multi-Unit Franchisee, originally published in Franchising.com on 2020-06-24. [Read the original](https://www.franchising.com/articles/franchise_incentive_programs_on_the_rise.html).*

## Story

Fazoli's and Denny's are just two brands that are working to make operations easier for franchisees during the difficult times brought on by the Covid-19 pandemic. Last week, Fazoli's announced a conversion program featuring zero down payment, zero franchise fees, and zero royalty fees for the first year. Under the plan, franchisees can sign a short five-year term, versus the typical 15-year commitment.

The move is meant to encourage challenged QSR or fast-casual restaurant operators to convert their existing shells into a Fazoli's. The QSR brand has relaxed many of its conversion requirements so operators can get a 2,000- to 3,500-square-foot restaurant open for less than $350,000. "This is the first time in our brand's history that we have ever launched a program this aggressive," said Fazoli's CEO Carl Howard.

"With this program, we are providing a low-risk, fast-track path to become part of the Fazoli's Franchise Family." Meanwhile, Denny's has announced it is waiving $3 million in royalty fees this quarter in an effort to help franchisees make it through the pandemic. The brand has also negotiated rent abatements and deferrals for 77% of its locations, passing along the benefits where its sites are sub-leased to franchisees.

The family dining brand says 99% of its franchisees have received federal assistance loans through the Paycheck Protection Program. More than 1,200 locations have resumed dine-in service but most of those are operating at 60% or less of their pre-Covid-19 seating capacities.

## Entities

- Franchising.com (publication)
- Restaurants (sector)
- Multi-Unit Franchisee (person)
- qsr industry (topic)
- Denny's (company)
- covid-19 pandemic (topic)
- Fazoli's (company)
- conversion program (topic)
- franchise incentive programs (topic)
- royalty fee waiver (topic)

---
Originally reported by Multi-Unit Franchisee, Franchising.com (https://www.franchising.com/articles/franchise_incentive_programs_on_the_rise.html). Summarized by Burnaze (https://burnaze.com/article/e5cee52b-8360-4466-96ca-61cf4b253e71).