Papa John's Franchise Costs, Fees & FDD

Year Business Began: 1984

Franchising Since: 1985

Headquarters: Louisville, Kentucky

Estimated Number of Units: 6,075

Franchise Description: The franchisor, Papa John’s Franchising, LLC. The franchise offered is a retail quick-service 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. Traditional Papa John's franchises are typically operated in leased space located on or near main thoroughfares. The franchisor also permits development of restaurants in non-traditional venues, such as malls, hospitals, schools, airports, sports stadiums, military bases, train stations, travel plazas, entertainment venues and certain less populous trading areas. There is also a small town program pursuant to which the franchisor may permit the development and operation of Papa John’s restaurants at certain less populous trading areas.
Training Overview: The franchisor will provide initial training on the operation of the restaurant to the principal operator and the management team. The management training programs consist of the prep curriculum, basic curriculum, and the advanced curriculum and must be completed in that order. The management training programs take approximately fifteen weeks to complete, however there is no maximum time frame to complete the management training programs. A typical week consists of 50 to 55 hours of training/instruction. Most of the training is “on-the-job” and is typically conducted at a Papa John's certified training restaurant. Classroom instruction may also be utilized to facilitate the training program, but this type of training typically makes up only about 5% of the total hours of training under the general manager training program and 25% of the total hours of training and instruction under the principal operator training program. However, the principal operator will also be required to attend one week of training at Papa John’s University. The franchisor also reserves the right to require any of the franchisee’s employees or prospective employees to take part in training and instruction as it deems necessary.

Territory Granted: Franchisees must operate their restaurant at a specific location identified in the Franchise Agreement. Franchisees may not conduct business at any site other than the restaurant. Franchisees may not relocate the restaurant without written consent, 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 specified radius of the restaurant, generally 1.5 miles. In densely populated 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 site in which the non-traditional restaurant is located.

Obligations and Restrictions: Franchisees (or their managing shareholder or partner) are not obligated to participate personally in the direct operation of the restaurant, except as described in the FDD. Franchisees must designate an individual to serve as the “principal operator.” If franchisees are individuals, they are the principal operator. If franchisees are a corporation, limited liability 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 delivery service from the restaurant, except that no delivery service may be provided from a venue non-traditional restaurant without written consent. Delivery service may not be required in certain non-traditional and small town non-traditional restaurants. 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 term is 10 years; five years for a non-traditional or small town restaurant. Franchisees may renew for an additional 10-year term (five years for a non-traditional or small town 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 certain equipment for the restaurants via a 48-month lease. Except for this lease, the franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$5,000	$25,000
GIS New Store Map Package	$0	$1,050
Construction/Leasehold Improvements	$25,000	$365,000
Furniture, Fixtures and Equipment	$37,000	$239,000
Information System	$0	$30,000
On-Site Support Fee	$0	$2,500
On-Site Installation Fee	$0	$5,000
Help Desk Service Fee	$0	$240
Technology Maintenance Fee	$0	$1,125
Signage	$8,000	$35,000
Test Fit Fee	$0	$950
First Month's Rent	$0	$8,500
Security Deposit and Other Deposits, Insurance Premium	$1,000	$10,000
Opening Inventory and Supplies	$4,000	$15,000
Opening Advertising	$5,000	$10,000
Training Expenses	$1,000	$30,000
Miscellaneous Opening Costs	$5,000	$25,000
Additional Funds - 3 months	$20,000	$50,000
ESTIMATED TOTAL (pre-opening and first 3 months of operation)*	$111,000	$853,365

*The estimated initial investment range covers from a non-traditional restaurant up to a standard/small town 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.
Digital Fee	2% 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, or if transfer is of multiple restaurants to more than one affiliated transferee, $8,000 in total.
Renewal	$4,000 for a traditional restaurant; $1,000 for a non-traditional or small town restaurant.
Audit Expenses	Cost of audit, understatement plus interest at 12% per annum.
Interest	Lesser of: (a) 12% per annum, or (b) the maximum rate permitted by law.
Management Fee	Compensation, travel and living expenses of the appointed manager and a per diem fee of $200.
Costs, Attorneys' Fees and Pre-judgment Interest	Will vary under circumstances.
Indemnification	Will vary under circumstances.
Marketing Fund Contributions	As of the date of the disclosure document, 6% for a traditional restaurant. Non-traditional and small town 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	Amount determined by Cooperative member vote.
Local Advertising	Local advertising is currently voluntary, and amounts spent are discretionary.
On-Site Installation and Support Fee	$2,200 for a standard 2-day installation, $1,100 per day for each additional day. The franchisor may increase this fee.
Software Maintenance Fee	$375 per month. The franchisor may increase this fee.
Help Desk Service Fee	Flat fee of $80 per month. The franchisor may increase this fee.
Required Purchases	Will vary under circumstances.
Training Fees	$150 per year per restaurant.
Alternative Supplier Fees	Reasonable cost of inspection of supplier and the actual cost of the test.
Liquidated Damages	Amount equal to the average royalty for the 12 month period preceding termination or breach multiplied by 24.

The above information has been compiled from the FDD of Papa John's. Year of FDD: 2025.
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