Papa John's
Papa John's Inc.
Company Information
2002 Papa John's Boulevard
Papa John’s International Inc. is a Delaware corporation incorporated on July 25, 1991. Their principal business address is P.O.Box 99900, 2002 Papa John’s Boulevard, Louisville, Kentucky 40269-0900.
The Papa John's franchise that we offer is a retail restaurant devoted primarily to the sale of pizza and related food products. The majority of Papa John's franchises are operated on a delivery and carry-out basis. However, there are a few restaurants that offer dine-in service and there may be additional restaurants with dine-in service developed in the future. We also permit development of restaurants in non-traditional venues, such as sports stadiums and food courts. The traditional Papa John's franchise is typically operated in leased space located on or near main thoroughfares. Restaurants operated under our Non-Traditional Program are typically located in sports stadiums or arenas and generally do not offer delivery service. We offer individuals, corporations, limited liability companies or partnerships (“Area Developers”) an area development agreement (the "Development Agreement"), the form of which is attached as Exhibit E, which grants to the Area Developer the right and obligation to establish and operate a certain number of Papa John's restaurants in a specified area (the "Development Area"), over a specified period of time at specific locations to be designated in separate franchise agreements. We also currently offer development incentive programs. The eligibility requirements for the incentive programs are described on the following pages. Each restaurant must be opened in accordance with the development schedule set forth in the Development Agreement. A condition to exercising each development right is that you secure a location that we approve. After the location for the first restaurant is approved and a lease is fully signed (or in the event of a purchase, title is conveyed to you), you must sign a franchise agreement (the "Franchise Agreement") in the form attached as Exhibit B. This Franchise Agreement governs the construction and operation of the restaurant at the approved location. There are separate fees paid under the Development Agreement and the Franchise Agreement. In 2019, Papa John’s will offer various incentive programs for the opening of a traditional restaurant. In order to qualify for the benefits offered under the 2019 incentives for traditional restaurants, you must remain in good standing under your Development Agreement and/or Franchise Agreements and current in amounts owed to us or our affiliates. Also, a restaurant must be open to the public and operating during normal business hours on normal business days to be open and operating for purposes of qualification for the incentives that are based on a specified date. A promotional, token, or “soft” opening of a restaurant followed by closure for 48 hours or more does not constitute “open and operating” for purposes of the Development Schedule. If a restaurant does not open on time, some or all of the incentives may be withheld at Papa John’s discretion, and the Development Agreement deposit will not be refunded. If you fail to maintain good standing status, we may: (a) required payment of our standard fees for each restaurant; and (b) revoke the Royalty reduction and begin collecting then-current Royalty rate.
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Franchise Rating
Franchimp Summary Rating
6/10
Earning Transparency
7/10
Investment Accessibility
4/10
Summary of potential earnings
$997,142 / unit
Average Revenue During 2020Quick Service Restaurants (QSR)
Franchise System Development
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Distribution of Papa John's Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $37,915 Maximum: $79,915
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $272,915 Maximum: $989,415
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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