Year Business Began: 1984 Franchising Since: 1985 Headquarters: Louisville, Kentucky Estimated Number of Units: 5,400

Franchise Description: The franchisor, Papa John ’ mho Franchising, LLC. The franchise offered is a retail quick-service restaurant devoted chiefly to the sale of pizza and related food products. The majority of Papa John ‘s franchises are operated on a pitch and carry-out basis. however, there are a few restaurants that offer dine-in avail and there may be extra restaurants with dine-in service developed in the future. The franchisor besides permits development of restaurants in non-traditional venues, such as sports stadiums and food courts. The traditional Papa John ‘s franchise is typically operated in rent space located on or near main thoroughfares. Restaurants operated under the non-traditional plan are typically located in sports stadiums or arenas and generally do not offer delivery service.

Training Overview: The discipline program takes approximately six weeks to complete. A distinctive week consists of 50 to 55 hours of training/instruction. Most of the train is “ on-the-job ” and is typically conducted at a Papa John ‘s certified coach restaurant. Classroom education may besides be utilized to facilitate the trail broadcast but this character of training typically makes up only about 5 % of the total hours of training under the general coach coach program and 25 % of the full hours of trail and education under the principal operator training program. however, the principal operator will besides be required to attend one workweek of discipline at Papa John ’ randomness University. The franchisor besides reserves the right to require any of the franchisee ’ south employees or prospective employees to take region in coach and education as it deems necessity. Territory Granted: Franchisees must operate their restaurant at a specific location identified in the Franchise Agreement. Franchisees may not conduct clientele at any web site early than the restaurant. Franchisees may not relocate the restaurant without written accept, which the franchisor will not unreasonably withhold. The franchisor will not, during the term of the Franchise Agreement, locate nor license another to locate a standard Papa John ‘s restaurant within a specify radius of the restaurant, by and large 1.5 miles. In dumbly populate urban areas, the Territory may be reduced to a one-half mile radius. If franchisees open a venue or non-traditional restaurant, the territory for that restaurant will extend only to the bounds of the locate in which the non-traditional restaurant is located.

Obligations and Restrictions: Franchisees ( or their do stockholder or partner ) are not obligated to participate personally in the direct operation of the restaurant, except as identify in the FDD. Franchisees must designate an individual to serve as the “ principal operator. ” If franchisees are an individual, they are the principal operator. If franchisees are a corporation, express liability ship’s company or partnership, the principal operator must meet certain qualifications. Franchisees must offer for sale and sell only those products and services the franchisor approves and must make all menu items specified by the franchisor available for sale by carry-out and rescue service from the restaurant, except that no manner of speaking service may be provided from a venue or sponsorship non-traditional restaurant without written consent. Franchisees may not offer for sale any products or provide any services that the franchisor has not approved. Term of Agreement and Renewal: The length of the initial franchise terminus is 10 years ; five years for a belittled township non-traditional restaurant. Franchisees may renew for an extra 10-year condition ( five years for a humble town non-traditional restaurant ), if they meet certain requirements. Financial Assistance: If franchisees sign a development agreement for multiple restaurants, the franchisor may offer franchisees through its affiliate, PJUSA, the opportunity to acquire sealed equipment for the restaurants via a 48-month lease. Except for this rent, the franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee ’ mho bill, lease or obligation.

Investment Tables:

Estimated Initial Investment
Name of Fee Low High
Initial Franchise Fee $5,000 $25,000
Real Estate Brokerage Fees $0 $10,000
Professional Fees $1,000 $12,000
Construction/Leasehold Improvements $0 $400,000
Furniture, Fixtures and Equipment $0 $120,000
Information System $0 $30,000
On-Site Support Fee $0 $2,500
On-Site Installation and Support Fee $0 $5,000
Help Desk Service Fee $0 $210
Technology Maintenance Fee $0 $720
Signage $3,000 $20,000
First Month’s Rent $0 $5,000
Security Deposit and Other Deposits, Insurance Premium $1,000 $8,500
Opening Inventory and Supplies $2,000 $10,000
Grand Opening Advertising $3,000 $10,000
Training Expenses $2,000 $15,000
Miscellaneous Opening Costs $2,500 $20,000
Additional Funds – 3 months $15,000 $50,000
ESTIMATED TOTAL* $34,500 $743,930

*The estimated initial investing compass covers from a non-traditional restaurant up to a standard restaurant. Please see FDD for more details.

Other Fees
Type of Fee Amount
Royalty 5% of net sales of the restaurant for each period; 6% for small town non-traditional restaurants.
On-Line Transaction Fee 1.75% of net sales via digital/internet on-line ordering, including aggregator orders.
Transfer $4,000, or if transfer is of multiple restaurants to more than one unaffiliated transferee, $4,000 per transferee.
Renewal $4,000; $1,000 for a small town non-traditional restaurant.
Audit Expenses Cost of audit, understatement plus interest at 12% per annum.
Management Fee Compensation, travel and living expenses of the appointed manager and a per diem fee of $200.
Costs, Attorneys’ Fees and Pre-judgement Interest Will vary under circumstances.
Indemnification Will vary under circumstances.
Marketing Fund Contributions As of the date of the disclosure document, 5%. Non-traditional restaurants pay 25% of the standard rate.
Papa Card Transaction and IVR Fees Maximum: 2% of Papa Card redemption transactions, unless the franchisor approves a higher rate.
Cooperative Contributions Minimum: 2% of net sales. Franchisee can opt to take the cooperative contribution rate down to make the total marketing fund contribution rate 7% of net sales. This can be done with majority vote of restaurants in the cooperative or by agreement. Co-op members may opt to pay the higher amount, so current highest contribution rate may well exceed 2.5%. Non-traditional restaurants pay 25% of the co-op’s contribution rate for standard restaurants.
Local Advertising Minimum: 8% of net sales, less amounts contributed to the marketing fund and cooperative; Minimum 2% of net sales for small town non-traditional restaurants.
On-Site Installation and Support Fee $2,500 for a standard 2-day installation, $1,000 per day for each additional day. The franchisor may increase this fee.
Software Maintenance Fee $240 per month. The franchisor may increase this fee.
Help Desk Service Fee Flat fee of $70 per month. The franchisor may increase this fee.
Required Purchases Will vary under circumstances.
Training Fees $100 per year per restaurant.
Alternative Supplier Fees  Reasonable cost of inspection of supplier and the actual cost of the test. 

The above information has been compiled from the FDD of Papa John’s. Year of FDD: 2021. Franchise Direct’s Disclaimer

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