Firm Internal
Franchising at pizza hut
nearly half of all pizza hut outlets are managed by franchisees. The company itself operates 2,173 restaurants and 361 delivery-only units. Franchise-partner are large companies, almost two-thirds operate 10 or more franchise areas. It is very exeptional and different to many other franchising programms. Franchisee sell its holding only to the pizza hut Inc. or to other franchisees, no new franchise areas are been offered to the public since 1971.
Franchising rights and obligantions are specified in agreements, each franchisee is obligated to develop its exclusive market area in accordance with a five-yaer development schedule. This agreement obligates the franchisee to open an agreed-number of new stores in a scheduled time. This is necessary to control new areas and to get no trouble in opening two stores in a short distance. In no case there can be establised a new outlet within 2 miles of an existing one.