Papa John’s Franchise – Cost, Fees & Financial Info

Papa John’s Franchise – Cost, Fees & Financial Info

January 21, 2023 Off By dodgersgurlmD

Papa John’s is a quick-service restaurant devoted primarily to the sale of pizza and other related food products. The majority of these restaurants are franchised, and operators of Papa John’s are considered independent contractors.

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How We Help Franchise Buyers Find The Right Franchise

00:00 Introduction
00:34 About Papa John’s
00:43 Franchise fee
01:00 Papa John’s costs
02:12 Papa John’s locations
03:05 Sales per restaurant
03:48 Investment ROI
04:32 Second generation locations
05:05 Revenue evolution
06:21 Conclusion
07:05 Contact us!

#PapaJohns #PizzaFranchise #VettedBiz

Hey, this is Patrick again, co-founder of Vetted Biz and Visa Franchise. Today I’m gonna talk a little bit about Papa John’s. We’ve gone through a lot of different pizza franchises, so you can see a couple of the videos like Domino’s Pizza, Little Caesars. And today I’m gonna be going through the franchise cost for Papa John’s, the fees, as well as some of the important financial information such as the average sales that you should consider before investing in a Papa John’s, or whatever pizza franchise in the United States.

So Papa John’s was originally founded in 1984. And as you can guess, it principally sells pizza and a few other food items.

The franchise fee to open up a Papa John’s franchise in the United States is $25,000, which is on the low end for food and beverage concepts but is in line with other pizza franchises like Domino’s Pizza as well as Little Caesars.

The total Papa John’s franchise cost, according to the 2020 Franchise Disclosure Document, ranges from $130,000 up to $844,000. So, besides the franchise fee of $25,000, other major expenses that you can consider including the opening inventory, which ranges from $23,000 all the way up to $73,000 for a Papa John’s franchise, other major expenses include the furniture, fixtures, construction, leasehold improvements, and additional funds. That’s how you get to that total investment amount that ranges from $130,000, again, all the way up to $840,000 for a Papa John’s pizza.

If you wanna open up a Papa John’s franchise, be prepared to spend a lot of money on advertising. The minimum advertising fee is 8% of net sales, which is significantly higher than other food and beverage concepts, which generally have the marketing around 3% that is required.

All right, so for those that are interested in opening up a Papa John’s franchise, we always get the question, “How much does a Papa John’s franchisee make in a given year?” I’ll go through the financials that they provided. At the end of 2019, according to their Franchise Disclosure Document, there were 3,200 total domestic Papa John’s restaurants’ locations within the United States. However, they only reported on roughly 2,300 franchise locations that basically operate as traditional locations restaurants, not in like… They’ve reported on 2,341 franchises that operate in traditional locations. This does not include food courts in malls or airports and other non-traditional locations for a Papa John’s pizza franchise.

The average sales per restaurant were $837,000 and then the median was pretty much the same, at $798,000. So not a huge variance when you look at the average sales and median. However, the range was astronomical. On the low end, you had a franchisee, again, out of 2,300 franchises that reported for Papa John’s in the 2019 fiscal year…so again, over 2,000 Papa John’s franchisees reported the financials in the most recent Franchise Disclosure Document. The average median, pretty similar, the range varied so much, $191,000 all the way up to $2.5 million. So you can see that there are some franchisees that are killing it and making a lot of money selling pizza, and there are some that are just barely scraping and probably not making much money at all…

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