Papa John's Franchise

Papa John's, a Papa John's Intl franchise, has been franchising since 1986 — 2 years after the concept was founded in 1984 , currently with 5,752 total locations in the food & beverage sector, headquartered in KY. According to the 2024 FDD, the total initial investment ranges from $130K to $844K — a 549% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $25K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 5.0% of gross sales with an additional 8.0% national advertising fund contribution, bringing the combined ongoing cost to 13.0% of every dollar in sales. Critically, Papa John's does disclose financial performance data in Item 19, a voluntary disclosure that only about a third of U.S. franchisors make. The reported average gross revenue per location is $1.1M, meaning the typical unit pays roughly $55K per year in royalty alone. Revenue is not profit — actual franchisee take-home depends on rent, labor, cost of goods, and local demand.

Network momentum is currently negative: Papa John's contracted by 0.9% year-over-year with 250 closures on the record. Contraction warrants careful investigation — it can reflect market saturation, unit-level unprofitability, franchisee disputes, or a deliberate pruning of underperforming locations. Call Item 20 contacts and ask specifically about closure reasons. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.