Papa John’s Franchise Cost Profit Reviews

Everything you want to fulfill your pizza desires is available at Papa John’s. Since its establishment in 1985, Papa John’s has grown to rank among the world’s largest franchise of pizza delivery services. Because the chain believes that everyone deserves excellent pizza, it has more than 5,000 outlets across the globe.

They have a total of over 2,500 franchisees in the US and more than 2,000 locations globally. Because of sponsorship and significant radio and television promotion, the brand is now well-known worldwide among the society.

It’s important to choose a brand identity that keeps up with market changes and appeals to today’s generation when thinking about investing in a pizza franchise. Zoom info indicates that it made $5.8 million in total revenue.

How much does a Papa John’s  franchise cost?

The franchise cost for Papa John’s Franchise is in the range of $200,130-$788,930 in the United States.

Papa John’s Franchise Price and Costs
Papa John’s  Franchise Fee	$25,000
Papa John’s  Franchise Cost	$200,130 – $788,930
Royalty Fee	5%
Advertising Fee	8%
Term of Agreement	10 years
Is franchise term renewable?	Yes
Renewable Franchise Fees	–

 

What is Papa John’s  franchise profit?

I will project the Papa Johns  franchise profit for you and years to recoup the investment (ROI).

 

AUV	Estimated Annual Profit (12.5%)	Estimated Annual Profit (15%)	Estimated Annual Profit (18%)
$ 1,101,127	$ 137,642	$ 165,169	$ 198,403
Recoup mid-point $ 494,530	3.5 years	2.9 years	2.4 years

 

The estimated Papa John’s franchise profit is in the range of $137,642  to $198,403  and it will take 2.4 to 3.5 years to recoup the investment.

 

According to industry standards, getting a return on the franchise investment will not take a very long time.

 

Is the Papa John’s Franchise Profit Worth the Cost?

Whether the Papa John’s franchise is worth the cost and can be profitable depends on several factors, including your individual circumstances, location, management skills, and the specific franchise opportunity. Here are some considerations to help you assess whether the franchise is a worthwhile investment:

 

• Financial Preparedness
• Market Analysis
• Franchise Fee and Royalties
• Location
• Competition
• Management Skills
• Support and Training
• Marketing and Promotion
• Long-Term Goals
• Risk Tolerance

 

To determine if the Papa John’s franchise is worth the cost, you should conduct a comprehensive financial analysis, including a pro forma income statement, to estimate potential revenue and expenses. Consider seeking advice from current franchisees and consulting with financial professionals who specialize in franchising.

 

Ultimately, the profitability of a Papa John’s franchise depends on various factors, and success is not guaranteed. It’s essential to conduct due diligence, carefully review the franchise agreement, and ensure that the franchise aligns with your goals and resources before making a decision.

Potential Risks to consider before investing in a Papa John’s  

Investing in a Papa John’s franchise can be a lucrative opportunity, but it’s important to be aware of the potential risks and challenges that come with it. Here are some key risks to consider before making an investment:

 

1. Initial Investment Costs
2. Ongoing Fees
3. Market Saturation
4. Location
5. Competition
6. Dependence on Corporate Decisions
7. Changing Consumer Preferences
8. Operating Challenges
9. Economic Factors
10. Regulatory and Compliance Requirements
11. Lease Agreements
12. Reputation Management
13. Employee Turnover
14. Seasonal Variability

 

Before investing in a Papa John’s franchise or any franchise, conduct thorough due diligence. Seek advice from current franchisees, carefully review the franchise agreement, and consult with financial and legal professionals experienced in franchising. It’s essential to understand the risks and challenges associated with the specific franchise opportunity and determine whether you have the resources, skills, and risk tolerance to navigate them successfully.

 

Papa John’s Franchise Requirements

 

1. Minimum Cash Requirement: $250,000
2. Net Worth Required: $750,000
3.  Franchise fee: $25,000
4. Initial investment: $200,130-$788,930

 

Papa John’s Training to Franchises

You will need to go through some training to ensure that you are qualified to properly manage your Papa John’s franchisee operation. By instructing you and the rest of the management, Papa John’s provides all the first training required for the operation of your restaurant. To be qualified in at least three of the seven possible operating stations, you must pass the new team member orientation or NTO training.

A normal training week consists of 50 to 55 hours of training and instruction, and the program is completed in roughly six weeks. Only roughly 25% of your overall training hours are spent in a classroom. Note that if you decide to run your franchise as the principle operator (i.e., the primary manager), you’ll also need to go through one week of training at Papa John’s University.

Papa John’s will assist you with training for new employees if you need it. You can arrange for new hires or your divisional managers to attend additional training sessions. This training consists of approximately 239 hours of on-the-job instruction and 75 hours of training in the classroom.

 

How is Papa John’s Territory Granted to Franchises

When you enter into a franchise agreement with Papa John’s, Papa John’s will not open another regular restaurant within a radius of 1.5 miles (the precise distance will depend on the details of your franchise agreement). In many crowded urban locations, this may be useful.

If you place your restaurant in an appropriate area, you can reach a concentrated population of potential clients. Other fast food chains operate similarly, however, some, like Arby’s, have different policies.

The franchisor, Papa John’s corporate, must provide you with formal permission before moving your location, which is a drawback.

 

What is the Franchise Term of Agreement and Renewal?

 

The franchise term of the Agreement is for 10 years, and it can be renewed by the owner after the completion of the franchise term.

 

Does Papa John’s provide Financial Assistance to Franchises?

 

There is good news if you cannot cover the startup expenses for a Papa John’s restaurant because the company has several connections to outside lending sources. You can obtain finance from these sources to pay your franchise fee, equipment, and other startup expenses.

Pros & Cons of owning a Papa John’s  Franchise

Pros of owning a Papa John’s  Franchises

• Established brand

• Proven business model

• Training and support

• Marketing assistance

• Potential for multiple locations

• Bulk purchasing power

Cons of Owning a Papa John’s  Franchises

• High initial investment and marketing and advertising fees

• Strict operational standards

• High competition

• Dependence on corporate decisions

• Market saturation

• Workload and long hours

 

Papa John’s  Rankings

#1 in Pizza in 2023: Best of the Best

#37 in 2023: Franchise 500

#14 in 2023: Fastest-Growing Franchises

#20 in 2023: Top Global Franchises

#3 in Pizza in 2022: Top Food Franchises

Franchise Deck Analysis and Overview

Papa John’s, established by John Schnatter in 1984, has grown into one of the world’s largest pizza franchises, renowned for its commitment to using high-quality ingredients and fresh dough. Its menu features a variety of pizza options, from traditional favorites like pepperoni to unique specialty choices. Beyond pizza, Papa John’s offers items such as breadsticks, chicken wings, and desserts.

The company is well-known for its “Better Ingredients, Better Pizza” philosophy, underscoring its dedication to quality. Papa John’s has also been involved in sports-related marketing campaigns and partnerships, including collaborations with the NFL and other major sports organizations.

Papa John’s primarily operates through a franchise model, with thousands of franchise locations worldwide, each owned and operated by individuals or entities under franchise agreements with Papa John’s International, Inc.

Despite encountering challenges and controversies, Papa John’s continues to be a significant presence in the global pizza delivery and takeout industry, serving customers in numerous countries.

 

Is Papa John’s a Franchise ?

Yes, Papa John’s is a franchise opportunity. They started providing franchise opportunities to potential owners in the year 1986 after being established in 1985.

 

Facts That Nobody Told You About Papa John’s 

 

• Small Beginnings: Papa John’s started in 1984 as a small operation in Jeffersonville, Indiana, with its founder, John Schnatter, selling pizzas out of a tiny space in his father’s tavern.
• Signature Garlic Sauce: The brand is famous for its beloved garlic dipping sauce, a unique addition that sets it apart in the pizza industry.
• Quality Focus: Papa John’s is dedicated to using high-quality ingredients, as reflected in its motto, “Better Ingredients, Better Pizza.” They make fresh dough daily.
• Mountain Delivery Stunt: In 2001, Papa John’s made history by delivering a pizza to the summit of Mount Kilimanjaro in Africa as part of a promotional stunt.
• Papa John: John Schnatter, the company’s founder, is affectionately known as “Papa John” and became the face of the brand through his appearances in commercials until 2017.
• Philanthropic Efforts: The “Papa John’s Foundation for Building Community” supports charitable initiatives and community development projects, showcasing the brand’s philanthropic side.

 

Papa John’s  Franchise Review and Information
Industry Type	Food
Sub Category	Pizza
Year Established	1985
Company Name	Papa John’s Inc.
Founder/Management Head	Rob Lynch, CEO
Franchising Started	1986
Employees at Company H.O	574
Franchise Expansion Plan	Throughout the US and worldwide
Number of Units	5,759 (as of 2022)
Number of Franchise Units	2,649
Social Media Handles	Facebook
	Twitter
	Instagram
Company Office location	2002 Papa John’s Blvd. Louisville, KY 40299

 

Papa John’s  Franchise Success and Failure Rate

 

The below table will highlight Papa John’s franchise success and failure rate for the last 3 years. This will supplement your decision-making process.

 

Year	Format	Start	End	Change
2019	Franchise Owned	2554	2544	-10
	Company Owned	645	598	-47
2020	Franchise Owned	2544	2546	+2
	Company Owned	598	588	-10
2021	Franchise Owned	2546	2564	+18
	Company Owned	588	600	+12

Competition Analysis of Papa John’s  

 

Papa John’s	Cost to Franchise	Franchisee Fees	Royalty + Ad fees	Expected Profit	Recoup of Capital	FD Rating
Papa John’s	$200,130 – $788,930	$25,000	5% + 8%	$137,642  to $198,403	2.4-3.5 years	4.0/5.0
Pizza King Franchise	$500,000-$1,000,000	$25,000	5% + 3%	$100,000-$200,000	2-3 years	3.5/5.0
Domino’s Pizza Franchise	$119,950-$461,700	$25,000	5.5%	$150,000-$300,000	3-5 years	4.5/5.0
Little Caesars Franchise	$221,000-$654,000	$20,000	6% + 3%	$100,000-$200,000	2-3 year	3.0/5.0
Pizza Hut Franchise	$367,000-$2,063,500	$25,000	6% + 4.75%	$150,000-$300,000	3-5 years	4.0/5.0
Round Table Pizza Franchise	$504,00-$1,062,500	$25,000	4%	$200,000-$400,000	4-6 years	3.5/5.0

The Franchise Deck rating for the Papa John’s franchise is 4.0/5.0.

 

 

Conclusion : Should You buy a Papa John’s  franchise for sale?

Opening a Papa John’s franchise offers a promising opportunity for pizza industry entrepreneurs. Established in 1985, Papa John’s has grown into a global pizza delivery leader, boasting over 5,000 outlets and a robust network of franchisees.

To assess the potential of investing in a Papa John’s franchise, one must weigh its advantages and challenges. The franchise provides benefits like a well-established brand, a proven business model, extensive training, support, and growth prospects. It also enjoys favorable industry rankings, reflecting its success and popularity.

However, prospective franchisees should be mindful of certain factors. The initial investment can be substantial, covering franchise fees and ongoing advertising expenses. Adherence to stringent operational standards is crucial, and competition in the pizza market is fierce. Moreover, franchisees may have limited control over specific decisions, and market saturation could impact profitability.

The estimated annual profit range of $137,642 to $198,403 and a relatively short 2.4 to 3.5 years to recoup the investment suggest an attractive return on investment compared to industry standards.

Ultimately, the decision to invest in a Papa John’s franchise depends on individual circumstances, location, management skills, and various variables. Prospective franchisees should conduct thorough due diligence, seek advice from current franchisees, and consult with professionals to assess the suitability of this opportunity for their goals and resources. Understanding the associated risks and challenges is crucial in making an informed choice about joining the Papa John franchise opportunities categories can look at alternatives

 

1. Jet’s Pizza Franchise 
2. Pizza Twist Franchise
3. Marco’s Pizza Franchise
4. Pizza Franchise
5. Your Pie franchise
6. Pielogy Franchise
7. Blaze Pizza Franchise 
8. Hotbox Pizza Franchise 

 

Frequently Asked Questions (FAQs)

 

• Is the Papa John’s franchise profitable?

Yes, Papa John’s can prove to be a highly profitable franchise for potential franchisees.

• Can you make money owning a Papa John’s?

Yes, you can make a considerable amount of money by owning a Papa John’s.

• Is a Papa John’s a franchise?

Papa John’s is a franchise, they started franchising in 1986.

• How much is a Papa John’s franchise?

The franchise fee for a Papa John’s franchise is $25,000 which is coupled with an initial investment of $200,130-$788,930, net worth and cash requirement of $750,000 and $250,000 each, and royalty and advertising fees of 5% and 8% respectively.

• How do Papa John’s franchises make money?

Papa John’s franchisees make money mainly by selling pizzas and other menu items, whether customers eat in, get their food delivered, or pick it up themselves. They also benefit from online orders, promotions, and catering gigs. Franchisees pay fees like the initial franchise cost and ongoing royalties. To succeed financially, they must be smart about expenses, run their stores efficiently, and use marketing strategies effectively.