Papa John’s to Reduce Fees for Franchisees Amid Schnatter Controversy
Papa John’s to Reduce Fees for Franchisees Amid Schnatter Controversy

The brand announced the assistance program to help address sales and operating challenges in the fallout from its founder’s comments

In an effort to halt plummeting same-store sales and a drop in unit count, Papa John’s announced an assistance program for its domestic franchisees. An article in QSR Magazine detailed the brand’s plan to move forward from the controversy surrounding ousted founder John Schnatter after his use of a racial slur on a conference call prompted him to step down last month. The program, which is backed by the brand’s Franchise Advisory Council and the Papa John’s Franchise Association, will reduce royalties, food-service pricing and online fees through the end of 2018 and will provide franchisees with funds to support new marketing and re-imaging initiatives as Papa John’s pursues its new brand direction.

“People are at the heart of our business, and this program is one of many actions we are taking to prioritize our team, address the recent challenges and move Papa John’s forward. I appreciate the open conversation that we have had with our franchisees and the support they have extended, both on this agreement and on the broader operating initiatives we are pursuing to improve performance and build a better future for our company and our stakeholders,” president and CEO Steve Ritchie said.

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