RETAIL Food Group (ASX: RFG) has 263 shops up for grabs and it is willing to pay to find the best candidates to take them.
The Gold Coast-based franchisor of Brumby’s Bakeries, Michel’s Patisserie, Donut King and Crust Pizza, says it is offering a cash reward of $5000 for a recommendation that leads to a franchisee signing for one of the company’s branded stores.
The plan is aimed at kick-starting franchise inquiries through to December, says RFG director of franchising Gary Alford.
“Many of our brand systems are currently experiencing rapid growth and a high level of interest from the franchising community,” he says.
“We are confident that our new, limited time only referral incentive will keep RFG top of mind for those thinking about purchasing a franchise this year.
“With a wide variety of brands and outlet styles to choose from, selling everything from pizza to coffee, we have a range of options available to suit any prospective franchisee’s needs.”
RFG concedes the move is in response to a highly competitive food franchising market.
Under the incentive scheme, recommendations are made through RFG’s “refer a friend” website.
The friend must submit an application for a new franchise by December 19 to be eligible for the referral fee.
RFG posted a $36.9 million profit in FY14, up 15.2 per cent on a year earlier, driven by an aggressive expansion campaign in recent years.
The company has just announced plans to buy the La Porchetta chain and Cafe2U mobile coffee business for $31 million, which will add to the 150 stories it commissioned over the past year.
RFG says franchisees need as little as $50,000 – and up to $500,000 - to secure one of the company’s franchises.
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