WICHITA — Tough economic times are creating an easier in for potential franchisees of Texas-based Stockade Cos., which has Sirloin Stockade, Coyote Canyon and Montana Mike's Steakhouse.
"It's not a secret that the economy has been rocked a little bit," Stockade COO Terry Harstad says.
So Stockade slashed its franchise fee from $20,000 to $10,000. In the first year of operation, a franchisee would have to pay 1½ percent in royalties compared to 3 percent previously. After the first year, that would go back up to 3 percent.
"We thought it was perfect timing," Harstad says.
Thanks to the new incentive program, he says, "We're just getting lots of interest."
It's what has led to a franchisee's plans to open a Montana Mike's in Winfield, which will make Stockade's 20th restaurant in Kansas when it opens in late May or early June.