Papa John’s Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$5,000 to $25,000
Investment required
$110,000 - $989,000
Royalty fee
5% to 6%

Papa John’s: Redefining Quality and Convenience in Pizza Dining

Discover the world of Papa John’s, a leading American pizza chain with a vast global footprint spanning all 50 US states and 45 countries.

Headquartered in Louisville, Kentucky, Papa John’s was founded by "Papa" John Schnatter in 1984.

Papa John’s is synonymous with quick-service dining, where pizza takes center stage, complemented by a variety of premium offerings. Their commitment to using high-quality ingredients and their signature phrase, "Better Ingredients, Better Pizza," reflects their dedication to customer satisfaction.

Originally focused on carryout and delivery, many Papa John’s locations now offer a welcoming dine-in experience with tables and seating. The brand is also known for its innovative ordering options, including online and mobile app orders, making it easier for customers to enjoy their favorite pizzas.

The franchising journey began in 1985, significantly expanding the brand's reach. Operated by Papa John’s International, Inc., it is now recognized as the world's third-largest pizza delivery company. In addition to its popular pizzas, Papa John’s menu includes a variety of sides, desserts, and beverages, catering to a wide range of tastes and preferences.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Papa John's offers 2 types of franchises:

Franchise Type Initial Investment
Standard Papa John's franchise $272,915 to $989,415
Non-traditional Papa John's franchise $110,000 to $401,915

We are summarizing below the main costs associated with opening a standard Papa John's franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Standard Papa John's franchise

Type of Expenditure Amount
Initial Franchise Fee; Development Fee Deposit $5,000 to $25,000
GIS New Store Map Package $1,050
Construction/Leasehold Improvements $120,000 to $493,000
Furniture, Fixtures and Equipment $77,000 to $252,000
Information System $20,000 to $30,000
On-Site Support Fee $2,500
On-Site Installation Fee $2,000 to $5,000
Help Desk Service Fee $240
Software Maintenance Fee $1,125
Signage $7,300 to $36,000
First Month's Rent $1,200 to $5,000
Security Deposit and other deposits, Insurance Premium $500 to $8,500
Opening Inventory and Supplies $6,000 to $15,000
Opening Advertising $3,000 to $10,000
Training Expenses $1,000 to $30,000
Miscellaneous Opening Costs $5,000 to $25,000
Additional Funds – 3 months $20,000 to $50,000
TOTAL ESTIMATED INITIAL INVESTMENT (PRE-OPENING AND FIRST 3 MONTHS OF OPERATION) $272,915 to $989,415

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Number of units

2024
Franchised units

2,564

2,658

2,689

Company-owned units

600

522

531

Total units

3,164

3,180

3,220

Franchise Disclosure Document

Training 

Before launching a restaurant, each franchisee, including the Principal Operator and the management team, participates in an extensive training program.

This program typically takes place at Papa John’s main offices, a certified training restaurant, or the franchisee's own location. The training is scheduled to be completed at least 3 to 4 weeks before the opening of the first restaurant.

The Principal Operator's training program includes:

  • At least two weeks of operations training at a designated Papa John’s restaurant, covering all seven Papa John’s operations stations for certification.
  • Up to five weeks of Manager Development Program (MDP) Prep training, preparing individuals for shift management.
  • Five weeks of Manager Development Program (MDP) Basic training, focusing on fundamental restaurant management skills.
  • Up to four weeks of Manager Development Program (MDP) Advanced training, providing in-depth knowledge of advanced restaurant management techniques.

Territory Protection

Franchisees are granted the right to operate a Papa John's Restaurant within a specific area known as the "Territory." This Territory is typically defined as a one and one-half mile radius from the restaurant's location. In densely populated urban areas, this radius may be reduced to one-half mile. Franchisees are required to develop and operate their Franchised Restaurants within this Territory.

Although the Territory grants certain territorial rights, it does not guarantee exclusivity. Franchisees may encounter competition from other franchisees or different distribution channels. The License Agreement does not offer options, rights of first refusal, or similar rights to acquire additional franchises within the Protected Area or adjacent areas.

In summary, while franchisees have a designated area for operation, they do not possess a broader exclusive territory, and their activities are confined to the specified and approved areas.

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