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Former Franchisor Execs Becoming Franchisees

Staying on the pizza topic for a moment…..Little Caesar’s and Donatos (both pizza) have a large number of former company executives that have transitioned to franchisees. That is a good sign and both are adding units faster than their counterparts in the industry, each for different reasons (LC for price, D for uniqueness). Little’s Caesars hot-and-ready pizza deals have been a hit with a simultaneous improvement in quality from high speed impingement ovens. Donatos’ pizza is a very unique thin pizza similar to a St. Louis style or Chicago thin style, and it has operations and pizza assembly down quicker than anyone I’ve seen. Surprisingly, Little Caesars makes their own dough while Donatos uses preformed frozen dough that arrives ready to bake on a disc.

Asking a franchisor salesman how many executives or former executives are franchisees is a great question.

About Ryan Knoll

Attorney and advisor with an interest in franchising. Feel free to email me comments and questions on the "Contact Us" page.

4 comments

  1. Additionally I would like to know their total compensation package before deciding to become zees and if they are opting for single unit or multi-unit agreements.

    • That would be interesting to know too. I wouldn’t be surprised if some franchisors have incentive programs for their management team that grant or discount franchise units. I haven’t seen it but I’m sure they can exist. Have you ever heard of that?

      • Ryan queries thusly:

        I wouldn’t be surprised if some franchisors have incentive programs for their management team that grant or discount franchise units.

        My reply:

        My understanding is ACE does.

        Kindest regards,

        FuwaFuwaUsagi

        • Correction, I checked it is True Value not ACE I meant to reference. My mistake – sorry. True Value’s VP is an owner operator, not sure about ACE.

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