Franchise Deep Dive: Papa John's Franchise Costs, Fees, Profit and Data

This pizza brand has been endorsed by big-time athletes Shaq and Peyton Manning, but how much success is it bringing franchisees? Lots!

By Erica InmanStaff Writer

Updated 3:15PM • 01/02/24

LAST UPDATED: December 2023

FRANCHISE WEBSITE: papajohns.com/franchise/investment-requirements/

NUMBER OF LOCATIONS: 5,500+

REPORTED COST TO GET IN: $188,615 - $975,415

REPORTED ROI (Item 19): $1,169,228 (average unit sales)

Papa John's is a well-known pizza industry giant with over 5K locations worldwide. The brand has seen consistent growth over the past 39 years, offering consumers delivery and takeout pizzas, chicken wings, and garlic bread.

Papa John’s is currently seeking to continue its growth with franchisees who have experience in business ownership and in the restaurant industry, with a preference for multi-unit franchisees purchasing five or more locations. The brand competes against other fast food pizza brands like Domino’s, Pizza Hut and Little Caesars.

How Many Papa John's Locations Are There?

Papa John's reports over 5,500 locations around the globe and continues to grow.

Founded in 1984 in Jeffersonville, Indiana in a broom closet, Papa John’s has been in operation for nearly four decades. The brand started offering franchise opportunities in 1986 and has grown steadily over the years, now with locations in 45 countries. This fast food pizza industry giant has garnered media attention throughout its history, with high-profile celebrity franchisees such as Shaquille O’Neal and Peyton Manning.

In the U.S., the brand ended 2020 with 3,134 outlets. In 2021, the brand ended the year with 3,164 outlets. And, in 2022, the brand ended the year with 3,180 outlets.

What Is the Papa John's Business Model?

Papa John's offers two different business models for franchisees. The traditional restaurant model typically operates delivery and carryout services, with some offering dine-in service. Non-traditional venues, such as locations in food courts or sports stadiums, exclusively offer counter service.

Papa John’s menu includes a variety of specialty and make-your-own pizzas, chicken wings, sides and desserts. All pizza is made with the brand’s original, never frozen, dough and fresh toppings. The brand also offers consumers a loyalty program where they can gain rewards for their purchases through the brand’s app.

How Much Can Papa John's Franchise Owners Make?

According to Papa John’s 2023 Franchise Disclosure Document (FDD), the average unit sales of all locations, both franchised and corporate owned, for the fiscal year of 2022 was $1,169,228, with the average unit sales of corporate locations being $1,324, 372, and the average unit sales for franchised locations being $1,133,480.

This data is drawn from 2,255 franchised restaurants and 496 company-owned restaurants, and includes only traditional models.

How Much Does It Cost to Open a Papa John's?

Papa John's estimates an initial investment of $101,500-$975,415.

For a traditional Papa John's restaurant, the initial investment required ranges from $188,615-$975,415. This includes a franchise fee of $25K. Franchisees are also required to pay an ongoing marketing fund fee of 8%, as well as a 5% royalty fee.

For a non-traditional Papa John's restaurant, the initial investment required ranges from $101,500-$405,865. This includes a franchise fee of $5K. Franchisees must also pay an ongoing 5% royalty fee and a 6% small-town royalty fee.

Franchisees must also have $250K liquidity with an overall $750K net worth.

What Is the Franchise Fee for Papa John's?

The initial franchise fee for a Papa John's traditional location is $25K. The franchise fee for a non-traditional restaurant is $5K.

Who Is the Leadership of Papa John's?

What Helpful Articles Can I Read To Learn More?

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