Papa John's franchise

Hassle-free business loans to start your Papa John's franchise.

Papa John’s is a pizza business giant with almost 6,000 locations worldwide. The brand offers consumers eat-in dining, delivery or takeout options and a choice of products that include pizzas, chicken wings, and garlic bread.

Novus Glass business details

Headquartered in Louisville, Kentucky, Papa John’s began in 1984 and has offered franchise opportunities since 1985. They are the third largest pizza chain in the US, behind Domino’s and Pizza Hut. In 2022 the business had US sales of more than $3.6 billion with average sales per store of more than $1 million per year. They operate in all 50 states plus another 44 countries and territories.

Papa John’s at a glance:

US stores: Approximately 3,180
Required Investor net worth: $750,000
Required investor liquid cash: $250,000
Min. investment: $189,000
Max. investment: $975,000
Standard franchise term: 10 years

Can I start a Papa John's franchise?

Getting into a Papa John’s franchise is not exactly a walk in the park. To start with, you’ll need fairly deep pockets to meet the start-up costs, which can run to almost one million dollars depending on the type of store you choose and where you are located. You’ll also need at least $250k in liquid cash and net worth of $750,000. Then, if you can cover the financial requirements, Papa John’s also expects that at least one franchise partner should have a business background and one partner must have substantial restaurant or retail management experience.

Lastly, the company prefers franchisees who will operate at least five Papa John’s outlets, and you’ll need to live in the area of your restaurants throughout the term of their contracts.

The good news is, that if you can designate a suitable general manager to run the restaurant and they take the necessary training, you can operate your Papa John’s as a passive investment.

How much does a Papa John's franchise cost?

Initial set-up costs for a Papa John’s franchise range from $189,000 to $975,000, ranking as low to high and marking a wide divergence in start-up expenditure. This reflects the fact that the majority of Papa John’s outlets operate as take-out and delivery only businesses, with no scope for sit-in dining and with much smaller premises and fit-out costs.

The initial franchise fee ranges from $5,000 to $25,000. There are no fee discounts or other franchise incentives for military veterans.

After opening, you are required to pay an array of ongoing fees and charges. They include:

Royalty fee: 5% to 6% of net sales
Digital fee: 1.5% of all internet (app) derived sales
Marketing fund: 5% net sales, (non-traditional outlets pay 25% of 5% fee)
Papa Card transactions: 2% Papa Card redemptions
Co-op contributions: Minimum 2% net sales
Local advertising fund: Minimum 8% net sales
On site installation fee: $2,500 for standard 2-day installation, then $1,000 per extra day
Software maintenance fee: $375 per month
Help desk: Flat $80 per month
Training fee: $150 per year
Renewal fee: $1,000 to $4,000
Transfer fee: $4,000

Estimated key costs to open a Papa John’s franchise:

Key Costs Guide	Low	High
Franchise fee	$5,000	$25,000
Real estate brokerage fees	$0	$10,000
Construction costs/leasehold improvements	$25,000	$405,000
New store map package expenditures	$0	$1,050
Furniture and fixtures	$37,000	$320,000
Information system	$0	$30,000
On-site support	$0	$2,500
On-site installation fee	$0	$5,000
Technology and maintenance	$0	$1,125
Signage	$8,000	$30,000
Additional tools and supplies	$1,000	$2,500
First month’s rent	$0	$5,000
Security deposit, other deposits and insurance	$1,000	$8,500
Opening inventory and supplies	$2,000	$10,000
Training expenses	$2,000	$30,000
Grand opening expenses	$3,000	$10,000
Miscellaneous expenses	$2,000	$20,000

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Are Papa John's franchises profitable?

Yes, but only modestly. The average gross sales of a US-based Papa John’s restaurant in 2023 was $1,135,000, but after all expenses, the reported annual income for the franchisee was only $67,000 and could even be as low as $40,000. This income level is either in line with or well below the average US franchise owner income (all US franchisees) of $60,000 per year.

What is the failure rate for a Papa John’s franchise?

Low to moderate. The failure rate for a Papa John’s franchise is 2% in the first year, rising to 6% by year three.

Why should you start a Papa John's franchise?

Papa John’s competes in a tough segment of the fast-food industry, battling for sales alongside giants like Domino’s, Pizza Hut and Little Cesar’s. Despite average annual sales of more than $1,000,000 per location, profit margins in the pizza business are notoriously tight, and this is reflected in the modest net income that Papa John’s franchisees can expect. That said, the US pizza industry remains strong and if you can start your store at the low end of the investment cost spectrum, it may still be possible to make a solid income from this type of business. In conclusion, if you can keep your profit expectations on the low side and you can maintain a tight grip on start-up and ongoing costs, a Papa John’s franchise may work for you.

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What are the franchise territory policies for Papa John's?

Franchisees can only operate their restaurant at a specific location as identified in their franchise agreement and may not conduct business at any site other than the restaurant. Franchisees may not relocate the restaurant without written consent of the company. Papa John’s promises not to locate or license another Papa John’s restaurant within a specified radius of the restaurant, generally 1.5 miles. In densely populated urban areas, the territory may be reduced to a one-half mile radius.

What franchise resources does Papa John's offer?

Papa John’s support for franchisees includes:

Training: Papa John’s provides initial training on the operation of the restaurant to the principal operator and the senior management team. All team members must complete new team member orientation training and be certified in a minimum of three of the seven operations stations. The training program takes approximately six weeks to complete. However, the principal operator will also be required to attend one week of training at Papa John’s University. The company reserves the right to require any of the franchisee’s employees or prospective employees to take part in training and instruction as it deems necessary. The principal operator and all restaurant managers may also be required to attend additional training that Papa John’s determines to be necessary or appropriate.
Marketing support: Papa John’s provides promotional and other marketing support for their franchisees.
Third-party financing: Papa John’s provides limited financial support for investors seeking franchise funding. Alternatively you may be able to obtain more economical and flexible funding solutions from the many independent funders who provide business loans to franchise operators.

What is the process for starting a Papa John's franchise?

It begins with an application. Start the process here.

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Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new pizza business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across the US. Just tell us what you need and leave the rest to us.

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Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

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Swoop requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

Franchise funding: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

Profitability: https://sharpsheets.io/blog/papa-johns-franchise-costs-profits/

Papa John’s franchise application: https://www.papajohns.com/franchise/investment-requirements/

Papa John’s: https://www.papajohns.com/franchise/

Owner income: https://www.mashed.com/188952/how-much-papa-johns-franchise-owners-really-make-per-year/

Failure rate: https://www.vettedbiz.com/franchises/papa-johns/

Set-up costs: https://www.franchisedirect.com/foodfranchises/papa-johns-franchise-07050/ufoc/

US sales 2022: https://www.qsrmagazine.com/operations/fast-food/ranked-the-top-fast-food-pizza-chains-in-america/

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