The Development Fee Deposit, $5,000 per Restaurant, will be credited against the Initial Franchise Fee. The balance of the Initial Franchise Fee of $20,000 is due and payable upon the execution of a Franchise Agreement for each traditional Papa John’s Restaurant.
Full Answer
How much does it cost to open Papa John’s franchise?
Papa John's offers an incentive for veterans which includes a waived franchise fee, free set of ovens, reduced royalty for 4 years and $3,000 food purchase credit. Papa John’s was founded in 1984 and has been offering franchise opportunities since 1986. You can start a Papa John’s franchise with an initial investment of as low as $300K
How long does it take to make money from Papa John’s?
Based on the median sales provided by Papa John’s franchise locations, at an average of a 15% profit margin it will take around 4.5 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 15% profit margin which would elongate getting a return on your investment.
How many Papa John's restaurants are there worldwide?
- John Schnatter. Papa John's is the 3rd largest pizza delivery company in the world, with over 5,200 restaurants worldwide. We are in 50 states and 43 countries. Annual system-wide restaurant sales are over $3 billion.
What is Papa John's famous for?
Papa John's is the 3rd largest pizza delivery company in the world, with over 5,200 restaurants worldwide. We are in 50 states and 43 countries. Annual system-wide restaurant sales are over $3 billion. Better Ingredients. Better Pizza is not just a slogan. What Does a Papa John's Franchise Cost?
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What is the franchise fee for Papa Johns?
$25,000Papa John's Franchise Cost / Initial Investment / Papa John's Franchise Income. The estimated initial investment required to open a standard Papa John's pizza franchise is $130,120 to $844,420, including a franchise fee of $25,000.
What is Papa Johns royalty fee?
5%$788,930Type of FeeAmountRoyalty5% of net sales of the restaurant for each period; 6% for small town non-traditional restaurants.On-Line Transaction Fee1.75% of net sales via digital/internet on-line ordering, including aggregator orders.16 more rows
Does Papa Johns have a 30 minute rule?
To claim the Quality Guarantee: The claim must be made the same day as the original order within thirty (30) minutes of the time of delivery or pick-up.
How much profit does a Papa Johns make?
Based on the median sales provided by Papa John's franchise locations, at an average of a 15% profit margin it will take around 4.5 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 15% profit margin which would elongate getting a return on your investment.
What franchise is the most profitable?
Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•
How much does Domino's franchise cost?
Initial franchising fee: The Domino's initial franchise fee is $10,000 for building a new store or refranchising a closed store. Do note that Domino's sometimes charges a "reservation fee" of $25,000. The franchise disclosure document that you receive will have more details on this additional fee.
Do you get your pizza free if it's late from Papa Johns?
Fortunately, that's not the case with Papa John's. At Peyton Manning's favorite chain, if your pizza isn't up to snuff, all you have to do is call and complain and they'll send you another one for free.
How long do I have to wait for my pizza to be free?
'30 minutes or free' promise is eligible till the first barrier point (security guard/reception etc.) Pizza Hut reserves the right to withdraw the service promise without prior information.
How long do Papa John's take?
How long does it take you to deliver pizza? Your pizza usually arrives at your door in about 30 minutes.
Is Papa John's a good investment?
Stock to Watch: Papa John's (PZZA) PZZA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. Additionally, the company could be a top pick for growth investors. PZZA has a Growth Style Score of A, forecasting year-over-year earnings growth of 123.6% for the current fiscal year.
Who owns the most Papa John's?
Top 10 Owners of Papa John's International IncStockholderStakeShares ownedJackson Square Partners LLC3.55%1,254,445SSgA Funds Management, Inc.3.07%1,086,257Artisan Partners LP2.92%1,031,479Renaissance Technologies LLC2.53%893,8006 more rows
How much does the average franchise make?
According to a survey done by Franchise Business Review involving 28,500 franchise owners, the average pre-tax annual income of franchise owners is about 80,000 dollars.
How many wings do you get at Papa John's?
They come with a dipping sauce of your choice to enhance the flavor. To complement your meal, try a six-piece or an eight-piece selection. You can also get ambitious and try the 16-piece order. For larger parties, you can satisfy your crowd with the 24-, 32- or even 50-piece wings.
How do Papa John's points work?
You'll earn 1 point for every $1 you spend (not including tax, tip or fees - like delivery). Papa Reward Points are earned per whole dollar spent (not including tax, tip or fees - like delivery). Amounts exceeding any whole number will be rounded down.
How many papa points do you need for a free pizza?
Papa John's Rewards. Join the Papa Rewards scheme and you'll get one rewards point for every £4 you spend. Earn 25 rewards points and you'll be eligible for a free large pizza.
How does Papa dough work?
Receive one point for every dollar spent (previously 1 point for every $5 spent). Get $10 Papa Dough for every 75 points earned. No limitations for the amount of points that can be earned per transaction.
What is a Papa John's franchise?
There are actually two types of Papa John’s franchises, per the company’s Franchise Disclosure Document (FDD): A Standard Restaurant Papa John’s. A retail restaurant devoted primarily to the sale of pizza and related food products. The majority of these restaurants are operated on a delivery and carry-out basis.
How much does it cost to franchise a Papa John's?
Now to the Papa John’s franchise cost. Papa John’s is one of the cheapest restaurants to franchise. The average franchisee can expect to pay out $300,000 to open a new Papa John’s restaurant. On the low end, you can start a non-traditional Papa John’s for just over $25,000. By comparison, a McDonald’s restaurant requires $1 million to $2.2 million in startup costs. To sweeten the deal, Papa John’s is waiving its $25,000 franchise fee for new restaurants, if certain conditions are met.
What is The Real Cost of A Lemonshark Poke Franchise?
However, other fast-casual restaurants may also have a place and opportunity to become an investment in the long run. One of them is LemonShark Poke, self-dubbed as a “fine casual” offering healthier food options for consumers needing a quick bite.
How many Papa John's stores were there in 1997?
A year later it had 500 stores, and by 1997 it had opened 1,500 locations. Papa John’s primarily takes carryout and delivery orders, although some stores have tables and chairs for dining in.
How much of the co-op contribution is required for franchise?
Minimum: 2% of Net Sales. Franchisee can opt to take the Cooperative contribution rate down to make the total Marketing Fund contribution rate 7% of Net Sales. This can be done with majority vote of restaurants in the Cooperative or by agreement. Coop members may opt to pay the higher amount, so current highest contribution rate may well exceed 2.5%. Non-Traditional Restaurants pay 25% of the co-op’s contribution rate for standard restaurants.
How long is franchising phase 1 training?
The franchisor may conduct the Phase I training at a chosen location or via video call or webinar. This training will last five days. However, the duration may vary depending on the participants’ experience, knowledge, or qualifications. After they complete Phase I training, they will proceed to Phase II training which will last another five days.
What items are prohibited by franchisors?
Items such as gaming, vending machines, payphones, ATMs, internet kiosks, mechanical and electrical items are prohibited unless approved by the franchisor.
Royalties, Advertising and Other Ongoing Costs
Royalties and Advertising rates are the most common ongoing costs for a franchise. At pizza concepts these tend to be higher than normal driven by large national advertising budgets. Papa John’s is no different with over 10% of sales spent on advertising costs. Other ongoing expenses include:
Profitability Breakdown
The company also breaks out an example of a store-level income statement. Here is how the average restaurant P&L breaks down according to the FDD:
Standard Restaurant
These fees represent commissions payable to real estate brokers in connection with securing possession of a site for the restaurant, whether by lease or purchase.
Non-Traditional Restaurant
Total Estimated Initial Investment (Pre-Opening and First 3 Months of Operation): $34,500 to $389,220
Why invest in a Papa John’s Franchise?
The initial investment requirement of as little as $300K for a 1,200 square-foot store is quite reasonable. The net-worth of as low as $250K is also plausible. On your part, the 5% royalty fee that can be renewed after every decade is something to call home about.
How much does it cost to open a Papa John's?
In order to open a Papa John's restaurant, potential franchisees must have access to liquid assets of at least $75,000, at least $250,000 in net worth, and the ability to obtain financing of up to $275,000. The company also charges a one-time franchise fee of $25,000 for new restaurants.
Why are franchise stores so low in sales?
For starters, some franchise stores do experience lower sales due to poor location, insufficient advertising or inadequate sitting. Also, a franchisee has to pay the mandatory 5 percent of net sales towards royalty fee as well as put in at least 8 percent of the profit towards advertising and marketing.
How big is Papa John's?
Average size: 1200 – 1400 square feet. Location: Strip center. Average number of employees: 20.
How long does it take to train at Papa John's?
Papa John's provides 6-8 weeks of training and also provides ongoing training for your operator and team.
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Is Papa John's Pizza right for me?
So, if you have a passion for quality and you want to be on a winning team, Papa John's may be right for you." - Papa John, Founder. Pizza Maker
How many Papa John's are there in the world?
Papa John's is the 3rd largest pizza delivery company in the world, with over 5,200 restaurants worldwide. We are in 50 states and 43 countries. Annual system-wide restaurant sales are over $3 billion. Better Ingredients. Better Pizza is not just a slogan.
What was the average franchise unit sales in 2016?
High sales to investment ratio with 2016 average franchise unit sales of $879,794.
Is Papa John's right for me?
So, if you have a passion for quality and you want to be on a winning team, Papa John's may be right for you."
