The 35-year-old hot sauce brand makes its franchise debut across three of the top destination retail markets

SEVIERVILLE, Tenn., June 9, 2026 /PRNewswire/ -- Pepper Palace, the specialty hot sauce and spice retailer founded in 1989, today announced the award of its first franchise agreements. The franchised locations will open across three of the top destination retail environments: Toronto's Distillery District, Fallsview Casino Resort, and Blue Mountain Village. These are all markets where Pepper Palace already operates company-owned stores.

Headquartered in Sevierville, TN and operating over 70 locations across North America, Pepper Palace has built its reputation in high-traffic, experience-driven environments. For more than three decades, its interactive, sampling-driven stores have turned casual shoppers into committed 'chiliheads.' With more than 100 franchise opportunities available across the United States, the franchise program represents the company's next step in bringing that model to new markets.

"Franchising is an exciting next step for Pepper Palace, but we want to grow the right way. The first franchise awards reflects the strength of the brand our team has built and the opportunity ahead as we bring Pepper Palace into new markets with the same energy, quality, and experience our customers know."
— Morten Jorgensen, CEO, Pepper Palace

What makes the model work for franchise operators is the product. Pepper Palace's sauces, seasonings, and condiments span every heat level and flavor profile and are entirely proprietary, exclusive to its stores and unavailable anywhere else. That, paired with a simple store design and a proven floor experience, gives operators a clear playbook and a built-in point of difference from day one.

The initial locations represent the first franchise agreements under Pepper Palace's formal program, designed for both single and multi-unit operators in the U.S. and Canada. The rollout begins in established destination retail markets where the brand already operates successfully, with additional markets under consideration as the program develops.

"As a former licensee myself, this moment is especially exciting. I understand what it feels like to step into a brand, believe in the model, and commit to building something locally. From a franchise development perspective, awarding our first franchise agreements is a major step forward and the beginning of a very exciting chapter."
— Tavis Scholz, VP of Franchise Development & Real Estate, Pepper Palace

Pepper Palace started as a single storefront in Gatlinburg, TN in 1989. Thirty-five years later, it has grown into a brand with its own manufacturing operation, a loyal national following, and a franchise program built on the same principle that started it all: destination retail is a natural fit for a brand whose in-store experience is the product.

This press release is not an offer to sell a franchise. Franchise opportunities are extended only by delivery of a Franchise Disclosure Document (FDD) in compliance with applicable federal, state, and provincial laws. Not available in all jurisdictions.

About Pepper Palace
Founded in 1989, Pepper Palace is a leading retailer of hot sauces and dry spices dedicated to bringing bold flavors to flavor enthusiasts everywhere. Headquartered in Sevierville, TN, Pepper Palace has grown to over 70 locations across North America, offering handcrafted, small-batch products made with all-natural ingredients. For more information, visit www.pepperpalace.com.

Contact:
Tavis Scholz 
VP of Franchise Development & Real Estate
franchise@pepperpalace.com
865-229-8178

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SOURCE Pepper Palace