How to Start Papa Johns Franchise In USA ?

Overview

Papa John’s provides everything you need to make your pizza fantasies come true! Since its founding in 1985, Papa John’s has expanded to become one of the most extensive pizza delivery services globally. The chain’s more than 5,000 locations worldwide work to provide top-notch pizzas because it thinks that everyone deserves better pizza. 

With over 2,000 sites worldwide, they have more than 2,500 franchisees in the United States. The brand is now well-known all over the world as a result of sponsorship and extensive radio and television advertising.

Each Papa John’s branch uses fresh dough and olive oil to make well-crusted, authentic pizzas. They make a point of using only the best ingredients. The pizzas are then topped with additional toppings, such as a distinctive sauce made from vine-ripened tomatoes after the dough has been hand-tossed and brushed with virgin olive oil.

As a franchisee, you’ll make delicious pizzas and ensure they get to consumers as soon as possible by employing the effective delivery system of the chain. This entails keeping track of delivery timings and keeping an eye on the delivery team’s schedule. 

In 1984, “Papa” John Schnatter founded Papa John’s Pizza in Jeffersonville, Indiana. At high school, Schnatter worked in pizzerias, which sparked his interest in food. After graduating from college, he took over his father’s tavern and started making and selling his own pizzas. 

Famously, Schnatter started his business by razing a broom closet, selling his Camaro, and purchasing secondhand pizza-making equipment. The business progressed well for Schnatter, and by 1993, Papa John’s had approximately 500 locations and was a publicly listed firm.

Before recently, Schnatter served as the CEO and Chairman of Papa Johns as well as its public face. However, a series of incidents, including his criticism of the NFL and profane comments made during conference calls, forced him to resign from both positions. Despite the controversy, Papa John’s is still the third-largest pizza company in the US.

Year Business Began1984
Franchising Since1985
HeadquartersLouisville, Kentucky
Estimated Number of Units 5,525

You can combine your love of baking with your desire to give back to the community by operating your own Papa Johns franchise.

There are a lot of papa john’s franchise opportunities since Pizza is nearly always in demand so you might have steady business all year.

Resources provided by the company include a group of operations experts, regional marketing directors, and franchise business directors that thoroughly examine every facet of your franchise. You could get a better franchise by keeping supply chain expenses down with the aid of these resources and grow with Papa John’s franchise profit.

Overall, Papa Johns franchise benefits are much more than Papa John’s franchise failure rate. So, open an outlet and get your name on Papa Johns franchise owners list!

Read More: How to Start Pizza Hut Franchise In USA ?

Facts and Figures

Wondering how much Papa John’s franchise cost?  Take a look at this table

Name of FeesLowHigh
Franchise$5,000$25,000
Real Estate Brokerage $0$10,000
Professional $1,000$12,000
Leasehold Improvements$0$400,000
Equipment$0$150,000
Information System$0$30,000
On-Site Support$0$2,500
On-Site Installation$0$5,000
Help Desk Service $0$210
Technology Maintenance$0$720
Signage$5,000$20,000
First Month’s Rent$0$5,000
Insurance Premium and Other Deposits$1,000$8,500
Opening Inventory$2,000$10,000
Opening Advertising$3,000$10,000
Training Expenses$2,000$30,000
Miscellaneous$2,500$20,000
Additional Funds$15,000$50,000
ESTIMATED TOTAL$36,500$788,930

Read More: How to start Blaze Pizza franchise in USA ?

Requirements To Open Papa Johns Franchise

To join the Papa John’s team, you must be financially prepared for all the investments to be made initially, including franchise fees and other starting expenditures, and abide by Papa John’s franchise requirements.

It’s also crucial to be ready for recurring costs, such as advertising, royalties, and possible renewal fees. Franchisees must also satisfy the franchisor’s established net worth and liquid capital requirements. Papa John’s franchise owner salary is all compensated with these payouts. (kidding 🙂

Other requirements for opening a Papa Johns franchise might be having company management experience, a partner, and being close to your desired location. Even though there aren’t many upfront expenses when starting a Papa Johns franchise, you should be ready to make a large investment. To make sure you have the financial stability necessary to create a Papa John’s pizza franchise, you may do this by meeting with a lawyer or financial expert.

Type of FeeAmount
Royalty5% of the restaurant’s net sales for each period; 6% for small-town non-traditional restaurants.
Online Transaction 1.75% of net sales via digital online ordering, including aggregator orders.
Transfer$4,000 per transferee.
Renewal$4,000; $1,000 for a small town non-traditional restaurant.
Audit Cost of audit, understatement plus interest at 12% per annum.
ManagementThe appointed manager’s compensation, travel, and living expenses are $200.
Attorneys’ Fees and Pre-judgement Interestvaries
Indemnificationvaries
Marketing Fund ContributionsAs of the date of the disclosure document, 5%, Nontraditional restaurants pay 25% of the standard rate.
Papa Card TransactionMaximum: 2% of Papa Card redemption transactions unless the franchisor approves a higher rate.
Cooperative ContributionsNo less than 2% of net revenues. Franchisees can reduce the cooperative contribution rate to 7% of net sales, which would be the contribution rate to the overall marketing fund. The cooperative’s restaurants may do this by majority vote or by agreement. Since co-op members can pay more, the greatest contribution rate is more than 2.5%. Non-traditional eateries contribute at a rate of 25% of what the co-op charges for regular eateries.
Local AdvertisingMinimum: 8% of net sales; Minimum 2% of net sales for small-town non-traditional restaurants.
On-Site Installation and Support $2,500 for a standard 2-day installation, $1,000 per day for each additional day. The franchisor may increase this fee.
Software Maintenance$375 per month. The franchisor may increase this fee.
Help Desk ServiceA flat fee of $70 per month. The franchisor may increase this fee.
Required Purchasesvaries
Training $100 per year per restaurant.
Alternative SupplierReasonable cost of inspection of supplier and the actual cost of the test.

Take a Note: The preceding details are taken from Papa John’s FDD.

Read More: How To Start Domino’s Franchise In USA ?

Application Process

The Best Way to Start a Papa John’s pizza Franchise: 

Fill out an inquiry form to get started with a Papa Johns franchise application. The brand may get in touch with you to discuss future endeavors in the process if they think you’d be a good fit. 

Nearly average income Papa Johns franchise is much more than other brands. 

So, Create a buzz and sauce your community by opening a Papa Johns outlet!

FAQ’s

The average cost of Papa John’s pizza, which includes pizzas, other foods, and beverages, is between $4 and $38.

According to the new agreement, Sun Holding owns the majority stake in Papa John’s.

The large-size Papa John’s pizza costs approximately $15.00

In addition to serving on the firm’s board of directors and owning a share in nine Papa John’s locations in the Atlanta region, Shaquille O’Neal recently signed an endorsement agreement with the company.

No, Papa John’s has never changed its brand name.

The large size of Papa John’s original crust pizza is 14 inches.

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