Founded in 1984 by “Papa” John Schnatter, Papa John’s is a quick-service restaurant, with a focus on serving “better ingredients, better pizza.”
Papa John’s emerged from a humble broom closet operation in Jefferson, Indiana, to its current place as the third-largest pizza delivery company in the world, behind Pizza Hut and Dominoes.
With over 5,000 stores worldwide and a proven track record of growth, Papa John’s offers franchisees a well-established business model and the chance to capitalize on consumers’ enduring love for quality pizza.
- Papa John’s offers franchise opportunities targeting experienced individuals or groups with strong business operations track records.
- There are over 5,000 Papa John’s locations globally, including all 50 U.S. states and an additional 45 countries and territories internationally.
- Papa John’s offers thorough training opportunities, including mandatory initial training for both franchise owners and team members and optional ongoing training experiences post-launch.
- Initial investment ranges from $130,120 to $844,420 for standard locations, with ongoing royalty and marketing fees.
- Standard Papa John’s locations average annual sales of $1,105,000 with a potential profit of around $68,000 for franchise owners.
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Is Papa John’s A Franchise?
Yes, Papa John’s offers franchise opportunities for multi-unit development, targeting experienced individuals or groups with a strong track record in restaurant or business operations.
With very few exceptions, Papa John’s does not provide dine-in service but rather focuses almost exclusively on carry-out and delivery. Non-traditional locations, like mall food courts, sports stadiums, or airports, can be franchised and provide over-the-counter service only.
How Many Papa John’s Locations Are There?
Since its founding in 1984 in Jeffersonville, Indiana, Papa John’s has established a global presence with over 5,000 locations worldwide.
Papa John’s franchises can be found in all 50 U.S. states, making up roughly 85% of the company’s total store locations.
Papa John’s is present and active in 45 other countries and territories, notably with 35 locations in Beijing and North China.
Another 246 stores exist under the corporate-owned model through which Papa John’s has expanded by leveraging joint ventures.
What Training Is Required To Open A Papa John’s?
Papa John’s provides thorough training and support for new franchisees, as well as new team members, offering a comprehensive six-to-eight-week managerial program that focuses on profit enhancement.
Additionally, there is a mandatory six-week New Team Member Orientation (NTO) training that covers various operational aspects such as order taking and delivery. Training primarily occurs on-site and is supplemented by classroom sessions.
As a Papa John’s franchisee, you will receive the initial standard restaurant operation training, while NTO training is required for all new team members. Papa John’s may also mandate additional training as needed.
Once your franchise is up and running, Papa John’s University offers further voluntary training opportunities for skill advancement.
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How Much Does It Cost To Open A Papa John’s?
Opening a Papa John’s franchise involves an estimated initial investment ranging from $130,120 to $844,420 for standard locations. For non-standard franchises, the estimated initial investment varies from $26,500 to $388,920.
The majority of Papa John’s franchise startup costs are related to food and labor, but you will also incur other material expenses, including rent, advertising, training expenses, and other professional fees.
The ongoing costs of operating a Papa John’s franchise include a 5% royalty on monthly revenues and an 8% marketing fee. Both initial and ongoing costs should be considered when considering the total investment for a Papa John’s franchisee.
Additionally, Papa John’s franchise owners must meet certain financial requirements pre-opening, including a minimum net worth of $750,000 and at least $250,000 in liquid assets. These figures serve as estimates and can vary depending on factors like location, franchise agreement, and specific business needs.
What is the Papa John’s Franchise Fee?
For a standard (or traditional) Papa John’s franchise, providing both over-the-counter and delivery service, the initial franchise fee is $25,000.
The initial franchise fee for non-traditional Papa John’s venues is $5,000. This includes locations existing in mall food courts, hospitals, airports, and event stadiums, where pizza is sold exclusively over the counter.
How Much Does A Papa John’s Franchise Owner Make A Year?
On average, a Papa John’s franchise generates $1,105,000 in annual sales. However, this figure varies depending on factors like location and competition and should not be the expectation for a brand-new franchisee.
According to the 2023 Franchise Disclosure Document, the average unit sales for all Papa John’s locations in 2022 were $1,169,228, with corporate locations averaging median sales of $1,324,372 and franchised locations averaging $1,133,480. These figures are based on data from 2,255 franchised and 496 company-owned restaurants, excluding non-traditional models.
On average, it takes a new Papa John’s franchise about 4.5 years to become profitable.
After achieving viability, the average annual profit for a standard Papa John’s franchise will be around $68,000.