About Papa John's Franchise
Papa John's is one of the largest pizza delivery and carryout chains in the world, with thousands of locations across more than 45 countries.
Founded on the promise of "Better Ingredients.
Better Pizza," the brand has maintained a strong market position through its commitment to quality toppings, signature garlic sauce, and a streamlined delivery experience.
Papa John's Franchise Cost & Fees
Minimum Investment
$261K
Average Investment
$557K
Maximum Investment
$853K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $5,000 - $25,000 | One-time payment upon signing |
| Royalty Fee | 5% of Net Sales (Traditional); 5% (Non-Traditional); 6% (Small-Town) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 6% of Net Sales (Marketing Fund Contribution, per NMF Initiative through Dec 2029); Non-Traditional and Small-Town: 1.50% | National brand fund |
| Total Investment Range | $261,165 – $853,365 | Includes build-out, inventory, working capital |
The investment range of $261K–$853K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Net Sales (Traditional); 5% (Non-Traditional); 6% (Small-Town)) and marketing fee (6% of Net Sales (Marketing Fund Contribution, per NMF Initiative through Dec 2029); Non-Traditional and Small-Town: 1.50%) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee / Development Fee Deposit | $5,000 | $25,000 |
| GIS New Store Map Package | $1,050 | $1,050 |
| Construction/Leasehold Improvements | $102,000 | $365,000 |
| Furniture, Fixtures and Equipment | $77,000 | $239,000 |
| Information System | $20,000 | $30,000 |
| On-Site Support Fee | $2,500 | $2,500 |
| On-Site Installation Fee | $2,000 | $5,000 |
| Help Desk Service Fee | $240 | $240 |
| Test Fit Fee | $950 | $950 |
| Software Maintenance Fee | $1,125 | $1,125 |
| Signage | $7,300 | $35,000 |
| First Months Rent | $2,500 | $8,500 |
| Security Deposit and other deposits, Insurance Premium | $2,500 | $10,000 |
| Opening Inventory and Supplies | $6,000 | $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 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $4,000 per Restaurant (or $8,000 total if multiple to one affiliated transferee) |
| Renewal Fee | $4,000 (Traditional); $1,000 (Non-Traditional and Small-Town) |
| Technology Fee | $375/month Software Maintenance Fee + $80/month Help Desk Fee + 2% Digital Fee on online/aggregator sales |
| Audit Fee | Cost of audit plus interest at 12% per annum if understatement >5% |
| Papa Card Transaction/IVR Fees | Up to 2% of Papa Card redemption transactions |
| Cooperative Contributions | Currently voluntary; up to 2% of Net Sales if mandatory |
| Local Advertising | Currently voluntary (minimum $10,000 grand opening) |
| On-Site Installation/Support | $2,200 standard 2-day; $1,100/additional day |
| Required Purchases | Varies (pizza dough, sauce, cheese, equipment from PJ Food Service) |
| Training Fees | $150/year/Restaurant |
| Liquidated Damages | Average royalty x 24 months upon termination for breach |
| Management Fee | Compensation + travel + $200/day per diem if franchisor manages |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 7 weeks (Principal Operator); 15 weeks (Management Training Program) |
| Classroom Training | 1 week at PJU (Papa Johns University) for Principal Operators |
| On-the-Job Training | 6 weeks field training at certified training Restaurants |
| Training Location | Certified training Restaurants (various locations) and PJU headquarters |
| Additional Training | MUM training: 5 weeks (3 weeks in approved market + 2 weeks in local market). Online training system: $150/year/Restaurant. Training may extend beyond 16 weeks depending on experience. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Generally 1.5 mile radius (may be reduced to 0.5 miles in dense urban areas) |
| Description | You will not receive an exclusive territory. During the franchise term, franchisor will not locate another standard Papa Johns within specified radius. However, Non-Traditional Restaurants may be placed in your territory. Franchisor and other franchisees may solicit and accept orders from within your territory. Online order routing is not exclusive. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years (Traditional); 5 years (Non-Traditional and Small-Town) |
| Renewal Term | 10 years (Traditional); 5 years (Non-Traditional, with additional 5-year option for Small-Town) |
| Renewal Fee | $4,000 (Traditional); $1,000 (Non-Traditional and Small-Town) |
| Renewal Conditions | Written notice, remodel/re-equip Restaurant, full compliance, secure approved location, pay renewal fee, sign general release, complete training, sign then-current franchise agreement (may have materially different terms) |
| Transfer Fee | $4,000 per Restaurant ($8,000 if multiple Restaurants to one affiliated transferee) |
| Transfer Conditions | Full compliance, transferee qualifies, all amounts paid, completion of training, $4,000 transfer fee, sign then-current agreement, general release, landlord consent. Franchisor has right of first refusal to match offer. |
| Termination for Cause | 30-day cure period for curable defaults (72 hours for health/safety issues). Non-curable: bankruptcy, criminal conviction, cease operations, unpermitted transfers, repeated defaults, false records, failure to maintain insurance, violation of non-compete |
| Non-Compete Period | 2 years |
| Non-Compete Details | During term: no involvement in any competing business anywhere. Post-termination: 2 years, no interest in competing business within 10 miles of the Restaurant or any other Papa Johns pizza Restaurant. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Not required to participate personally in day-to-day operations. Must designate a Principal Operator who owns at least 5% equity interest, devotes full time to supervision, completes initial training, and is proficient in English. |
| Required Suppliers | Pizza dough and pizza sauce must be purchased exclusively from PJ Food Service (affiliate). Information System and Designated Software from PJ USA (affiliate). Cheese, pizza toppings, garlic butter sauce, equipment, smallwares, uniforms, printed materials from approved suppliers. |
| Supply Restrictions | Required purchases from franchisor/affiliates represent up to 12% of total purchases for establishment and up to 19% for operations. Approved supplier purchases represent up to 89% for establishment and 81% for operations. |
| Franchisor Revenue from Suppliers | In fiscal year ending December 29, 2024: PJ USA $70.0 million and PJ Food Service $801.0 million from franchisee transactions (approximately 43% of total revenues). Affiliates received $5.6 million from designated suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Equipment lease through affiliate PJUSA: 48-month lease for equipment valued $30,000-$125,000. No interest or finance charges. Single $50 payment at end of term to purchase. Financing through affiliate Capital Delivery, Ltd. (CDL) may also be available. |
Papa John's Franchise Earnings — Item 19
Average Revenue
$1.2M
Median Revenue
$1.1M
Revenue Range
$292K – $3.3M
Sample Size
2878 units
Past financial performance does not guarantee future results. Individual results will vary.
Papa John's Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Papa John's System Growth
Total Units
3291
Franchised
2752
Company-Owned
539
Papa John's currently operates 2752 franchised locations and 539 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 145 | 49 | 2658 |
| 2023 | 73 | 32 | 2689 |
| 2024 | 90 | 0 | 2752 |
Transfers: 106 | Closures: 26
Public Figures (Item 18)
The following public figures are associated with this franchise: Shaquille ONeal - Endorsement Agreement with ABG-Shaq, LLC. One-year term extension in 2025. $3.5 million in cash payments. Also operates 9 Atlanta-area Papa Johns via 30% JV ownership.
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Papa John's Franchise — FAQ
The total investment to open a Papa John's franchise ranges from $261,165 to $853,365, per their Franchise Disclosure Document. This includes the initial franchise fee of $5,000 - $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Papa John's charges a royalty fee of 5% of Net Sales (Traditional); 5% (Non-Traditional); 6% (Small-Town) of gross sales, plus a 6% of Net Sales (Marketing Fund Contribution, per NMF Initiative through Dec 2029); Non-Traditional and Small-Town: 1.50% contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Papa John's Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Papa John's to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Papa John's franchise owners report average revenue of $1.2M and median revenue of $1.1M. This is based on a sample of 2878 units. Past performance does not guarantee future results.
Papa John's has been franchising since 2021. The FDD shows an investment range of $261,165-$853,365, a 5% of Net Sales (Traditional); 5% (Non-Traditional); 6% (Small-Town) royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $5,000 - $25,000 and the total investment ranges from $261,165 to $853,365 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Papa John's and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Papa John's or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com