Papa John's Franchise Information
- Business established: 1984
- Franchising since: 1986
- Initial investment: As little as $300,000
- Required net worth: $250,000, with a minimum of $75,000 in liquid assets
- Franchise fee: $25,000 (though incentive programs exist)
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How much money does Papa John's make a year?
Compare PZZA With Other StocksPapa John's Annual Revenue (Millions of US $)2020$1,8132019$1,6192018$1,6632017$1,7839 more rows
Does Papa John's still make money?
Over 40% of the stores are losing money," he said. Schnatter said that under his leadership, Papa John's – now known as "Papa Johns" – was rated by the American Customer Satisfaction Index as "the highest quality in the pizza category" 18 times in 19 years.
Who owns the most Papa John's?
Top 10 Owners of Papa John's International IncStockholderStakeShares ownedAllspring Global Investments LLC3.44%1,216,074SSgA Funds Management, Inc.3.07%1,086,257Artisan Partners LP2.92%1,031,479Renaissance Technologies LLC2.53%893,8006 more rows
What is Papa John's 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
Is Shaq a owner of Papa Johns?
Shaquille O'Neal has an ownership stake in nine Atlanta-area Papa John's pizza restaurants, is a member of the company's board of directors and has a new endorsement deal with the brand.
Why did Papa Johns get fired?
Schnatter also said that people in his home state of Indiana used to drag African Americans from trucks until they died. After the call, the owner of the marketing agency moved to end its contract with Papa John's. Schnatter resigned as chairman of the board the same day the incident was reported.
How much stock does Shaq own in Papa Johns?
The NBA legend is also receiving 87,136 shares of stock, valued at roughly 4.4 million. Shaq signed a three-year contract to represent the Papa John's brand. Engaging NBA legend and TV analyst Shaquille O'Neal was a Shaq-sized coup for Papa John's.
How many Papa Johns does Peyton Manning own?
Peyton Manning's relationship with Papa John's is a memorable one. He even owned 31 establishments of the pizza restaurant chain but soon decided to sell all of them.
Is Shaq still part of Papa Johns?
Papa John's will keep Shaq around for at least three more years.
What franchise makes the most money?
What is the most profitable franchise to own? According to the Franchise 500 list of 2021, Taco Bell is the most profitable franchise to own. The food chain has been franchising for nearly 6 decades and is still seeking franchises worldwide. As of 2021, they have 7,567 open units.
What is the cost of McDonald's franchise?
Documents- ID cards, lease documents, etc. Franchise Investment Cost- In India, if anyone wants to start a McDonald's franchise in India, then their net worth should be between INR 10 to 15 Crore. Also, assets worth INR 5 Crore should be in the form of cash or liquid assets.
What is the cost of a Starbucks franchise?
What are the Financial requirements for a Starbucks licensed store? You need to pay the licensing fee of between $50,000 – $315,000 and you must have over $1,000,000 in liquid assets to be considered for a licensed store by Starbucks.
How many Papa John's franchises are there?
Papa John'sPapa Johns headquarters in Cumberland, GeorgiaNumber of locations5,400 (December 2020)Key peopleRobert M. Lynch (President & CEO) Max Wetzel (CMO) Jim Norberg (COO)ProductsPizza, chicken wings, dessertRevenueUS$1.81 billion (FY December 29, 2020)14 more rows
How many Papa John's are there in the US?
Number of Papa John's restaurants worldwide from 2017 to 2021, by countryCharacteristic20172020United States3,3143,134United Kingdom384467China199211Korea1301939 more rows•Mar 25, 2022
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 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.
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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.
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.
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
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 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.