Pizza Inn lowers royalty rates for franchiseesPizza Inn lowers royalty rates for franchisees

THE COLONY Texas Pizza Inn Inc. said Wednesday that it would cut royalty rates for new and existing franchises to aid in the opening of more of the company’s buffet-style restaurants.

Amid the continuing credit crunch, the company said it would waive sales royalties for the first year and collect only a 2-percent royalty in the second year. The chain's standard royalty rate is 4 percent.

Pizza Inn, which has more than 300 restaurants, said the initiative was designed to ease start-up costs in the first two years of a restaurant’s operation. The lowered rates will be offered on deals closed by June 30.

Pizza Inn joins other pizza segment players that have offered help to their franchisees. In mid-November, Papa John's International Inc. began offering royalty relief and corporate lending to help some of its 2,128 domestic franchise locations. Papa John’s initiatives also included lower prices for cheese. Domino's Pizza and CiCi's Pizza also have reached out with assistance for franchisees.