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Papa John’s Pizza Franchise Review

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The 3rd largest pizza company in the world is none other than Papa John's International with approximately 3200 units worldwide. International 2008 milestones include landmark 100th store openings in the UK and China plus the franchise's very first store opening in Amman, Jordan. Papa John's is taking full advantage of their website. You can check out specials, print out coupons, purchase or reload a gift card, or arrange catering. You can even order your dinner on line.

Background and Benefits

Papa John's offers a surplus of support to help franchisees become successful. These services include a team of Franchise Business Directors, Regional Marketing Directors, and Operations Specialists that analyze all facets of your franchise business from the inside out. This includes site selection assistance, IT Systems, Risk (insurance) Services and Quality Management. Papa John's also offers their exclusive PJ Food Service as the franchisee's one stop shop for nearly all the ingredients and supplies franchisees will ever need, including paper items and even cleaning supplies.

How Much Does a Papa John’s Franchise Cost?

Papa John's tells you right up front that if you have the net worth you can have as many units as you want. Minimum net worth for one unit is $250,000; 4 to 10 units are $1 million, and 11+ units require $2 million in net worth. Liquid assets consisting of cash and/or readily available financing should total at least $250,000 for any number of units. Other qualifiers include at least one partner, a successful business management background, and close proximity to the location chosen. The franchise fee is low at $25,000 with a 5% ongoing royalty fee payable monthly. The estimated investment is between $160,000 and $395,000 with an average unit of 1200 to 1400 square feet in a strip center running about $220,000.

What We Like

As compared with other restaurant franchises, Papa John's Pizza is relatively simple to get into. The net worth requirement is reasonable and the royalty is a standard 5% renewable every 10 years. Yet, even with all this, it's the newest food add-on that has our endorphins surging-Chocolate Pastry Delights! Papa John's latest addition to the quick service food chain comes tagging along free of charge with any pizza purchase of $11.99 or more. Pizza and Chocolate? Can it get any better than that? We only wonder why it took them so long to think of it.

Pros

  • Absentee Ownership - Actually encouraged if you don't have QSR experience.
  • Ranking - Recently named the #10 Global Franchise by Entrepreneur Magazine.

Cons

Forced Marketing Budget - A franchisee must spend a minimum of 7% of the monthly net on marketing.

Papa John's Franchise Information:

Business Established: 1985
Franchising Since: 1986
Franchise Fee: $25,000
Total Investment (US): $160,000 to $395,000

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