Papa John's Puts Up $80 Million Towards Struggling Domestic Franchisees

In August of 2018, Papa John’s International Inc. cut royalties and other fees for franchisees in the wake of poor sales. The brand has now extended that assistance through 2020, while also providing royalty-based incentives and targeted relief to struggling franchisees. The company said in a statement reported by Nation’s Restaurant News, “this announcement enhances the partnership between the company and franchisees by delivering needed investment in the brand and providing franchisees with certainty on the schedule of remaining royalty relief.”

“We’re pleased to announce that Papa John’s will make a significant investment in the exciting future of our brand. This is an important shared moment for Papa John’s and our committed franchisee base,” said CEO Steve Ritchie. The Papa John’s Franchise Advisory Council is in full support of the upcoming assistance. Chairman Bill Green said in a recent statement, “We appreciate the company’s continued investment in the Papa John’s brand, marketing initiatives and overall franchisee support. We look forward to enjoying the continued benefits of our long-term, successful partnership and to winning together.”

The brand initially suffered poor sales amid controversy surrounding John Schnatter, founder and former face of the brand. Schnatter allegedly made racially insensitive and other controversial comments, and has since stepped down as CEO and board chair. Schnatter has not had a formal title in the company since April of 2019, although he remains the primary shareholder.
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