What’s the Price to Purchase a Papa John’s Franchise?

Pizza. An Italian traditional that each American household can chunk into and love. Irrespective of town you end up in, you possibly can rely on a scrumptious pizza joint proper across the nook. Many pizza chains declare to have the quickest, hottest, and freshest pies, resembling Domino’s or Pizza Hut, however nobody can say theirs is as iconic as Papa John’s. So, what’s Papa John’s, and what makes it such an elusive place?

Papa John’s is an American fast-food chain that has gone worldwide. In 2021, there have been round 5,650 Papa John’s restaurants worldwide. These numbers are the best they’ve ever been for the pizza franchise. This chain is clearly recognized for its pizza, however in addition they serve Papa Bowls, Papa bites, Papadias (pizza quesadillas), wings, tasty sides, and desserts. Their pizza supply companies are additionally extensively loved. What makes this franchise enterprise so nice might not be simply the meals; it’s additionally the wealthy historical past. Papa John’s story begins in Jeffersonville, Indiana, when a younger entrepreneur named John Schnatter based the primary restaurant within the early Eighties. This restaurant grew right into a pizza chain after which a pizza franchise due to its higher pizza — constructed with contemporary and authentic elements.

As an entrepreneur your self, you might be considering trying to begin your first massive enterprise. With all the data on the market, it’s troublesome to determine what’s the greatest option to put your hard-earned cash into. A preferred enterprise for a lot of is to turn into a franchisee for a fast-food restaurant. Why is that this? Many fast-food franchises are profitable and do an amazing job of uplifting communities and reaping earnings. If this sounds fascinating to you, it is best to contemplate opening a Papa John’s franchise. On this submit, it is possible for you to to search out all the data wanted to correctly assess the professionals and cons of opening a Papa John’s restaurant, the necessities for proudly owning one, the price of a Papa John’s franchise, its profitability, coaching, phrases of the settlement, and the appliance course of. On this article, we’ll cowl the next:

Papa John’s

Everybody is aware of Papa John’s as an iconic American fast-food chain serving scrumptious pizza out there for choose up and supply. Now headquartered in Louisville, Kentucky, their dishes are repeatedly reinvented to make Italian-American meals all the higher. Take their new and widespread Papadillas. Right here, they folded pizza to modify up a traditional. If you end up at one, you possibly can by no means go flawed with a pepperoni pie.

Being a Papa John’s franchisee means taking part in the sport as a quick-service restaurant and getting linked to a fast-paced and food-centered world. The preliminary funding and expense in beginning a Papa John’s restaurant could value some capital, however you possibly can count on first rate returns in your leap of religion. However is that this a good suggestion, is it the precise one for you? Answering that query begins with exploring some great benefits of a Papa John’s restaurant.

Price of Beginning a Papa John’s

The entire prices related to beginning a Papa John’s restaurant are comparatively average. They are often damaged up into two classes: a multi-store traditional format versus a non-traditional format. The entire funding is greater for a multi-store conventional format and decrease for a single non-traditional format. Whereas it’s essential to think about a Papa John’s franchise value, you could additionally contemplate what format works greatest for you.

For a multi-store conventional format:

  • Franchisees might want to have from £500,000 (or round $602,000) out there in money; that is known as liquid belongings.
  • Franchisees might want to make investments a complete of £170,000 to £350,000 (or round $205,000 to $421,000).
  • Administration service charges will value a complete of 5% of weekly web gross sales.
  • A nationwide advertising payment will value you a complete of 4% of weekly web gross sales
  • The Preliminary franchise payment can be round $22,000.

For a non-traditional format (versus a normal restaurant):

  • Franchisees might want to have £50,000 (or round $60,000) out there in money; that is known as liquid belongings.
  • Franchisees might want to make investments a complete of £80,000 to £150,000 (or round $96,000 to $181,000).
  • Administration service charges will value a complete of 5% of weekly web gross sales.
  • The Preliminary franchise payment can be round $22,000.

Some folks clarify that franchising a Papa John’s can be a lot simpler with a minimal web price of $250,000. You will need to bear in mind this can be a web price requirement as a result of it’ll make financing choices simpler.

Not like fast-food restaurant McDonald’s, Papa John’s royalty payment is greater for non-traditional eating places. Coming in at 6% for small-town non-traditional eating places and 5% for others.

How Worthwhile is Papa John’s?

Understanding how worthwhile a Papa John’s restaurant might be is a vital issue when contemplating changing into a franchisee.

The unlucky fact is that Papa John’s is underperforming its opponents. John Schnatter, the founder and ex-chairman of Papa John’s, says there are a number of causes for this. He believes they’ve strayed from their authentic firm values and have spent an excessive amount of cash on promoting and PR to make up for misplaced gross sales. Nevertheless, some folks consider John Schnatter himself is the issue. Though he’s now not formally tied to the corporate, his title will eternally be synonymous with the model. And with him, his scandals.

Others say site visitors and prospects have gone down as a result of lack of availability and entry or as a result of their pizza just isn’t higher than opponents. In response to a poll by Sitejabber, public opinion on Papa John’s pizza varies tremendously. Papa John’s has a client ranking of round two stars and is positioned 137th out of all meals supply. Prospects report positively on just a few issues: (1) on-line ordering is made simple and accessible, (2) the cheese pizza is excellent, and (3) customer support was nice. Nevertheless, prospects who reported negatively stated the next: (1) the pizza crust just isn’t excellent, (2) orders are incessantly delivered flawed, (3) the meals doesn’t have higher style or high quality than different eating places close by, (4) it takes too lengthy to place out meals, (5) dangerous supply companies, and (6) meals going raw. Many complain that an organization constructed by having higher pizza ought to have higher pizza. Regardless of the trigger could also be, the consequence is identical. Shops are actually shedding cash by over 40%.

What does this imply for his or her franchises, although? This implies with a purpose to have a profitable and worthwhile franchise, it’s worthwhile to correctly handle your staff and care in your prospects. Whereas these issues converse to the person location, right here’s how these fast-food eating places truthful on common:

  • Franchise operators report incomes $67,000 yearly on common. You will need to be aware franchise operators from Pizza Hut or McDonald’s make greater than this.
  • Primarily based on Papa John’s franchise disclosure doc (FDD), the average revenue for franchise locations was $997,142 in 2020.

Benefits of Proudly owning a Papa John’s

The primary benefit of proudly owning a Papa John’s franchise is the flexibility to be working with a globally established model. That is helpful to a potential franchisee like your self as a result of you could have 1000’s of others in the identical scenario, in a position to supply perception and recommendation that can assist you in your journey. The struggles of beginning a brand new franchise turn into lots simpler when others can lead you thru what to do. You’ll even have entry to international sources and prospectives whereas making your particular person location have a small enterprise flare. That institution additionally helps with title and menu recognition. Many already know what Papa John’s is and have an affinity with it. Subsequently, a number of promoting charges might be taken out of your startup prices.

The second benefit of proudly owning a Papa John’s franchise is the offered flexible format given to you by franchisors. This permits you, as an proprietor, some discretion within the administration of your location. This implies you possibly can amplify the connection of your Papa John’s to your group, enriching these round you and growing your client base.

The third benefit of proudly owning a Papa John’s franchise is the excessive chance of success in every property. Whereas many different manufacturers can have combined outcomes, Papa John’s franchises are proven to have under a fifteen percent failure rate. Papa John’s was additionally ranked third in gross sales for American pizza chains in 2018. This implies the model is likely one of the most worthwhile and dependable. The model and menu itself hardly ever are issues for franchisees.

The ultimate benefit of proudly owning a Papa John’s franchise is the community of help Papa John’s has. Papa John’s tried and true mannequin franchisee mannequin permits many to reap the advantages of being part of a successful construction and household.

Disadvantages of Proudly owning a Papa John’s

The first drawback of proudly owning a Papa John’s franchise is being in competitors with many different fast-food pizza chains. When massive opponents like Pizza Hut, Domino’s, Papa Murphy’s, and Little Caesars Pizza come into play, it’s exhausting to face out and be distinctive.

The secondary drawback of proudly owning a Papa John’s franchise is that Papa John’s just isn’t essentially the most worthwhile, widespread, or largest meals franchise. In 2018, Domino’s, Pizza Hut, and Little Caesars Pizza bought extra items than Papa John’s by a substantial margin. The product sales of Domino’s have been $12,252,100,000 versus Papa John’s $3,695,000,000 in 2018.

The tertiary drawback of proudly owning a Papa John’s franchise is that gross sales, on common, have been falling, and nationwide reductions are exhausting to make earnings from. In response to Restaurant Enterprise Editor-in-Chief Jonathan Maze, the problem with Papa John’s is their franchisees. Earnings are falling general, and reductions compelled onto franchises are exhausting to pay for.

The disadvantages of proudly owning a Papa John’s might be summarized by its competitors. Some say Papa John’s pizza franchises might not be as profitable as a few of its opponents and are, subsequently, not a worthy enterprise. This choice is finally private, and also you, as an entrepreneur, should resolve if this model is best for you. Need assistance making that selection? We advise trying on the values of Papa John’s and seeing if these most align with your personal and figuring out if you’re really obsessed with this pizza chain. Papa John’s values embrace fairness, variety, inclusion, integrity, teamwork, buyer and team-mindedness, a way of group, outside-of-the-box pondering, ardour, and enjoyable. Does that sound such as you?

Necessities for Proudly owning a Papa John’s

After contemplating the professionals and cons of proudly owning a Papa John’s, you may resolve that it is best to start buying a franchise. You’ll need to fulfill the next necessities with a purpose to efficiently open your franchise. You will need to be aware that Papa John’s makes changing into a franchisee easy. Their necessities are much less stringent when in comparison with their opponents, and a number of the next data serves as a place to begin, not a agency sure or no.

The monetary necessities for proudly owning a Papa John’s are comparatively average and might be seen within the subsequent part of this text. The principle notes to take from these necessities are to have $60,000 out there in liquid belongings and have a web price of roughly $250,000. These figures will make the remainder of this course of happen simpler. You is perhaps asking, how a lot is my web price? Your web price might be calculated by including up the worth of your belongings (helpful property or gadgets you personal) after which subtracting your liabilities (cash you owe). That whole is your web price. What is taken into account an asset? Your home, financial savings, inventory accounts, automobile, money furnishings, and extra are all belongings. Now, what is taken into account a legal responsibility? Issues like taxes owed, excellent balances, and any loans or debt you owe are thought of liabilities. Bear in mind, a minimal of $250,000 as your web price is required to open a Papa John’s franchise.

There are different monetary necessities that you could observe under. Extra importantly, these are among the issues Papa John’s seems for in a franchisee.

Papa John’s holds sure values very near their hearts. These values embrace variety, inclusion, integrity, group, outside-of-the-box pondering, and enjoyable. Loads of what Papa John’s is on the lookout for in folks on the subject of opening a Papa John’s franchise lies in these values. When pursuing a franchise, contemplate making your self out to be a passionate chief. Ask your self if in case you have the mandatory management expertise and motive to make you a superb candidate. Being a passionate individual will assist too. Determine why you’re making the choice to turn into a franchisee, why Papa John’s particularly, and why pizza. These questions are essential to ask your self earlier than beginning the appliance course of. Nevertheless, ardour alone won’t get you a franchise.


Appropriate and relative expertise in enterprise or property administration will make you a extra enticing candidate. When making use of for a pizza franchise, it’s essential to construct a historical past for your self. What earlier experiences inform a franchisor you could have what it takes? Think about the next examples as speaking factors to show you might be worthy:

  • Have you ever ever managed purchasers, prospects, coworkers, or initiatives?
  • Do you could have any expertise working with non-profits?
  • Have you ever ever volunteered? If that’s the case, the place and for a way lengthy?
  • What’s your degree of schooling?
  • What have you ever completed beforehand for work?
  • Have you ever ever had an internship?
  • Have you ever ever participated in coaching or skilled others?

It is best to have ready solutions to those questions with a purpose to appear extra of an skilled candidate.


Papa John’s seems for a way in contact you might be together with your group. Are you native? There’s a social pattern to favor small companies. Papa John’s is on the lookout for individuals who might help make every pizza restaurant really feel particular, distinctive, and related to actual property. They need every Papa John’s location to really feel like a small city non-traditional restaurant. Ask your self how one can tailor your franchise, how one can assist your group, and the way it might help you.

Previous Entrepreneurship

The ultimate factor that Papa John’s seems for in a franchisee is that if they’re a earlier enterprise or franchise proprietor. Touching again to the expertise requirement, proudly owning a enterprise or franchise offers you a monitor file that manufacturers can have a look at and decide in case you could be a worthwhile enterprise.

Coaching for Papa John’s

If you’re new to the franchise-owning recreation, Papa John’s franchisor ought to present ample coaching for the fundamentals of restaurant operation. This consists of key management abilities, menu and low cost particulars, easy methods to open and shut, easy methods to disseminate duties and roles, and extra. When you have earlier expertise working a enterprise or franchise, this needs to be a refresher for you. If not, then this may function a soft start line. Papa John’s administration group is an efficient useful resource for upcoming franchisees.

There may be a further coaching program required for all new Papa John’s group members. This coaching routine is named new group member orientation (NTO) coaching. In new group member orientation coaching, workers will obtain data regarding no less than three of the seven operation stations Papa John’s has to supply. Examples of stated operation stations embrace order taking, supply, and extra. This coaching takes about six weeks to conduct, masking round fifty hours of content material. This coaching is essential is changing into a talented and efficient group member.

The format of the aforementioned coaching is normally performed in individual, on the job. As with most job expertise, the majority of the work will happen on shift, and data can be obtained as conditions come up.

Papa John’s does supply a Papa John’s College the place in-person and, normally, in-classroom coaching is finished to advance worker capabilities and productiveness. This isn’t all the time crucial for each franchise to think about.

Time period of Settlement and Renewal for a Papa John’s

If you’re contemplating changing into a franchisee, it is very important perceive what a franchise settlement is. The time period of the settlement is a doc shared between you, the franchisee, and Papa John’s, the franchisor. It may also be known as the phrases of use. These phrases are written guidelines that have an effect on your rights when opening a brand new franchise. These phrases can embrace many issues; right here, we’ll focus on how they implicate the franchise relationship, growth settlement, wage, advantages, and extra.

Starting with the franchise relationship, Papa John’s should define of their phrases of settlement what you might be to the corporate. This consists of your place within the firm, your base wage, regular hours of labor, advantages, duties, holidays, termination, and damage and illness-related matters. This doc will comprise all it’s worthwhile to find out about the place you stand. It’s essential to evaluate your self-worth and expertise earlier than signing a time period of settlement. Sometimes, this doc and data will stay confidential.

Your franchise settlement also needs to dictate the event settlement, a press release that outlines the the place, when, and the way of opening a franchise. There may be an accompanying payment for creating every location. Some report it’s round $5,000 (disclosed in Papa John’s FDD). This settlement ought to allocate what number of places can be opened.

Lastly, employee-based matters are given to you with discretion and shouldn’t be finitely described on this doc. Once more, Papa John’s prioritizes the native contact every retailer can have and, thus, permits you some leeway in figuring out key points of its operation.

Renewal is one other course of it is best to contemplate when opening a Papa John’s franchise. This implies contemplating how lengthy you need to be a franchisee, if you wish to develop your places and buyer base, and the way you’ll cowl the renewal costs in your franchise. The size of an preliminary franchise time period is round ten years and might be repeatedly renewed if all necessities are met.

Means of Beginning a Papa John’s

So, are you curious about opening a Papa John’s? As a way to make an knowledgeable choice, you could steadiness the professionals and cons of opening a location. Are you curious about Papa John’s? What about it calls to you? Are you really passionate in regards to the model? Then, contemplate in case you meet the necessities. Do you could have an sufficient quantity of liquid belongings? Do you meet the minimal web price requirement? Decide if in case you have sufficient data and expertise to open a location. Have you learnt the place you’ll open one? Or, will you open many? When you have a optimistic reply to all these questions, let’s proceed.

As a way to really start the method of opening a Papa John’s franchise, you’ll have to take that first step by filling out a franchise application on their website.

On this software, you have to to supply the next:

  1. Your contact data. This consists of your title, handle, state of residence, e mail handle, and telephone quantity.
  2. Subsequent, you have to to clarify if in case you have or are in a enterprise or partnership. This consists of any particular person, partnership, restricted legal responsibility firm (LLC), company, or different entity that works with and sells pizza.
  3. You’ll need to explain the place you prefer to your franchise location to be. This consists of the state and metropolis it’ll reside in.
  4. Then, you have to to find out if you’re considering a non-traditional venue. Non-traditional venues are situated in airports, malls, comfort shops, or faculty campuses.
  5. You’ll have to present your web price. Embody the web price of your accomplice if you’re engaged in a single.
  6. After that, they’ll ask in case you at the moment personal a multi-unit franchisee. If not, put no within the drop-down field.
  7. You’ll then want to clarify your quick-service restaurant (QSR) expertise, enterprise expertise, and administration expertise. If you happen to wouldn’t have any, please enter that.

After these steps, your software needs to be completed, and you’ll be able to hit ‘submit software.’ This doesn’t imply the work is finished. If you’re authorised, you might enter an interviewing course of, adopted by rounds of authorized agreements, modification processes, development, discovering workers, and eventually, you might open your location. Though this course of is lengthy and winding, Papa John’s representatives are there to stroll you thru this journey and get you the place it’s worthwhile to be.


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