Should you buy a Papa John's franchise?
There is some good news for any investors out there who are thinking about buying into a Papa John's franchise. While the profits may be less than some fast food franchises, the cost to open a unit is also considerably lower.
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.
Why did Papa John's give $500 to owners to clean up Schnatter?
According to Forbes, owners were having to reduce employee hours because of dwindling sales, so financial relief was handed down to soften growing franchise grievances. The real kicker here is that Papa John's pledged $500 per store to help franchise owners wipe clean any image of John Schnatter.
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?
See more
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."
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.
Can you text on Franchise.com?
By pressing Subscribe Now, you agree that Franchise.com Network and businesses you selected may call/text/email you at the number you provided above, including for marketing purposes related to your inquiry. This contact may be made using automated or pre-recorded/artificial voice technology. Data and message rates may apply. You don’t need to consent as a condition of any purchase. You also agree to our Privacy Policy.
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
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
How much money does Papa John's franchise cost?
Most food franchises may reach millions of dollars in investment. But Papa John’s is a bit different. That’s because the financial requirements for the said franchise would not exceed the $1 million mark. If you like selling pizzas, you could leverage the growing popularity of the company.
How long does it take to become a Papa John's franchise owner?
As a franchise owner, you would undergo training for six to eight weeks. You’d train onsite, at the headquarters, and at one of the company’s restaurants. Your employees or prospective employees may also be required by Papa John’s to take part.
What is franchise fee?
The franchise fee is a one-time payment that allows you to use the company’s trademark and products.
How much does it cost to train a restaurant?
The expenses for the training run from $1,000 to $15,000 if you’re planning to set up a standard restaurant. Non-traditional units, on the other hand, could cost you $2,000 to $6,000.
How much does a restaurant equipment cost?
For a traditional restaurant, the price of equipment runs from $30,000 to $120,000. Furnishings for unconventional units, on the other hand, cost $80,000.
Do you need an additional fund to run a franchise?
Hence, an additional fund is necessary to cover the regular expenses.
Is Papa John's a good investment?
This incentive, plus the low financial requirement, makes Papa John’s a pretty good investment. Add in your passion for food selling, and you’ll surely make it big while doing away with the hefty initial fee.
How much did Papa John's franchise cost in 1990?
In the 1990s, Papa John's was doubling in size nearly every year and opening a location was pretty cheap as far as franchise standards go — around $100,000 (via Encyclopedia.com ). The good times have come to an end, however, and opening a Papa John's — and the profits that come with it — just aren't what they used to be.
How much does it cost to open a Papa John's?
Opening a Papa John's only costs around $300,000. That's a lot less than the cost of opening a Taco Bell or McDonald's, which unlike Papa John's, have large eat-in dining areas. For comparison, you might have to shell out over $2 million if you want your own McDonald's. Papa John's also has a much lower net worth requirement, ...
Is Papa John's sales worse than Domino's?
Well, it might actually be worse — a lot worse. In February 2019, Restaurant Business reported that because Papa John's sales plummeted so badly following a very bad 2018 that domestic operators were only making around $40,000 — before taxes. Both Domino's and Pizza Hut operators make considerably more.
Who is the founder of Papa John's?
The company's founder, John Schnatter, is responsible for having built Papa John's into a cheesy empire, but Schnatter has also harmed the company in numerous ways. Schnatter is longer the big papa calling the shots at Papa John's, but his mistakes have taken a toll on the company's franchisees.
Does Papa John's make less than other fast food chains?
Papa John's franchisees make less than other fast food operators. Joe Raedle/Getty Images. A dark cloud has fallen over the once great Papa John' s pizza empire, and the company just isn't making the sort of profits that it used to. Given that Papa John's was growing so fast and so profitable two decades ago, today's earnings are rather ...
Is Papa John's franchise profitable?
All things considered, owning a Papa John's franchise may not be the worst way to enter into becoming a fast food business owner. It's certainly not as lucrative as it once was, but as of November 2019, sales do seem to be somewhat recovering (via Yahoo Finance ).
Is Papa John's downfall bad?
It's never a good sign, though, when franchise owners have to call on corporate for help in the form of financial relief. The 2018 fallout from John Schnatter's downfall was so bad for Papa John's that corporate had to reduce its monthly royalty fees for franchise owners, as well as cut down on the cost of food materials.