1851

This summer&rsquo;s most bizarre story in franchising keeps getting weirder.

John Schnatter, who <a href="https://1851franchise.com/john-schnatter-says-resignation-was-a-mistake-2707189" target="_blank">last week said he regrets his decision to resign</a> from the pizza chain he founded after the <a href="https://www.nytimes.com/2018/07/11/business/papa-johns-racial-slur.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=papa-johns-may-dilute-stock-to-prevent-john-schnatter-from-regaining-control-2707276" target="_blank" rel="nofollow" target="_blank">revelation that the former CEO had used a racial slur</a> in a conference call with investors in May, is not going away without a fight.

As <a href="https://money.cnn.com/2018/07/23/news/companies/papa-johns-stockholder-rights-plan/index.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=papa-johns-may-dilute-stock-to-prevent-john-schnatter-from-regaining-control-2707276" target="_blank" rel="nofollow" target="_blank">CNN Money reports</a>, Schnatter and his associates still own 30 percent of the company&rsquo;s stock, and the franchise is determined to prevent him from increasing his stake.

To head off that eventuality, Papa John&rsquo;s board of directors has approved a so-called poison pill provision, which would prevent any outside party, including Schnatter and his associates, from buying a controlling stake in the open market.

The poison pill will take effect if Schnatter and his associates increase their stake to 31 percent or if anyone else acquires 15 percent of the company&rsquo;s common stock (PZZA). Either event would trigger a severe discount in the price of the company&rsquo;s stock, allowing stockholders to purchase bulk shares and dilute control of Schnatter or anyone else increasing their stake.

Schnatter&nbsp;has not&nbsp;said whether he plans to increase his stock and trigger the poison pill provision, but this story seems increasingly unlikely to wrap up anytime soon.

Papa John’s May Dilute Stock to Prevent John Schnatter from Regaining Control

1851 Franchise

The pizza chain’s “poison pill” provision will reduce the price of stock if the former CEO increases his stake

papa-johns-may-dilute-stock-to-prevent-john-schnatter-from-regaining-control

The Junkluggers

image of Lucy Mejia from Atlanta Georgia junkluggers franchisee owner mom

How This Stay-at-Home Mom Found Her Calling With The Junkluggers Franchise

lucy-mejia-junkluggers-franchise

image of the junkluggers franchise and a list of the top 5 reasons to purchase a junkluggers

Top 5 Reasons To Buy a Junkluggers Franchise in 2026

top-5-reasons-to-buy-a-junkluggers-franchise-2026

image of a junkluggers franchise owner franchisee standing in front of a company truck succesful

Junkluggers Franchisees Win the Fast-Growing, Eco-Focused Junk Removal Market With Mission, Momentum and a “Frictionless” System Built for Scale

the-junkluggers-franchise-opportunity

BIGGBY COFFEE

 BIGGBY® COFFEE Cracks Top 200 on Franchise Times Top 400, Climbing More Than 100 Spots in Four Years

biggby-coffee-cracks-top-200-on-franchise-times-top-400-climbing-more-than-100-spots-in-four-years

KidStrong Franchising, LLC

KidStrong Franchise - Sabrina Du - Steve Do - Tampa - 1851 Franchise

Why a KidStrong Franchise Fits This Family’s Next Chapter

kidstrong-franchise-tampa-steve-do-sabrina-du

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Design with government building & "Open for Business" sign against American flag backdrop

Government Reopens After 43-Day Shutdown, Bringing Relief to Small Businesses and Franchises

government-shutdown-ends-franchise-impact

As Starbucks and Dunkin’ Navigate a Changing Market, New Coffee Players Keep Gaining Ground

starbucks-dunkin-franchise-coffee-market-trends

Paris Baguette Welcomes Zac Sulma as New Chief Operating Officer

new-coo-zac-sulma

AI-related job cuts, October U.S. job cuts, American job cut record

AI-Fueled Layoffs Reshape the U.S. Job Market — And Highlight Franchising’s Resilience

ai-job-cuts-franchising-path-forward

Crunch Fitness Franchise - Sixth Street Minority Stake - CR Fitness - 1851 Franchise

Sixth Street Takes Minority Stake in CR Fitness, the Largest Crunch Fitness Franchisee

cr-fitness-crunch-fitness-sixth-street-investment

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

right-at-home-franchise-las-cruces-jerome-hanway

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

The Top 15 Pet Supplies and Retail Franchises for 2025

the-top-15-pet-supplies-and-retail-franchises

Veterans In Franchising Thriving As Entrepreneurs, Three Times More Likely To Own A Franchise

veterans-entrepreneurship-franchise-owners

Papa John’s May Dilute Stock to Prevent John Schnatter from Regaining Control

MORE STORIES LIKE THIS