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Net
Worth and Capital Requirements
Papa John’s net worth and capital requirements
for new franchisees are as follows:
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1-3 units |
- Minimum net worth
of US$250,000; and
- US$225,000 per restaurant
in cash, liquid assets, or available financing.
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4-7 units |
- Minimum net worth
of US$1,000,000; and
- US$225,000 per restaurant
in cash, liquid assets, or available financing.
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8 or more |
- Minimum net worth
of US$3,000,000; and
- US$200,000 per restaurant
in cash, liquid assets, or available financing.
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These are minimum requirements
and do not represent the total potential costs
to open and operate one or more Papa John’s
units.
Ownership
- The prospective franchise
group should have at least one partner with
a business background and one partner with substantial
restaurant or retail management experience.
- The Principal Operator
must live in the area to be developed throughout
the term of the franchise group’s existence
and must have prior management experience relative
to the number of units to be developed.
- A personal financial
statement and resume must be submitted for each
member of the proposed franchise group, and
a resume must be submitted for the Principal
Operator candidate.
International Franchise
Fees
- The initial franchise fee
is US$25,000 per unit for a standard Papa John’s
restaurant.
- An ongoing management service
fee (or royalty) of 5% of net sales is due on
a monthly basis.
- Papa John’s requires
that a minimum of 6% of net monthly sales be
spent by each franchisee for marketing purposes,
as follows.
- 5.5% is spent on local
marketing; and
- 0.5% is paid to a global
marketing fund.
International Franchise
Agreements
- Letter of Intent: This
letter outlines our understanding of the territory
and the number of units to be developed in such
territory, and requires a deposit. The deposit
will be credited against the Exclusivity Fee,
which is due when the Master Franchise or Development
Agreement is signed.
- Development Agreement:
The binding agreement that includes development
rights and obligations and outlines the development
schedule. Under certain conditions, we will
consider a Master Franchise Agreement.
- Unit License Agreement:
The agreement that is signed when each restaurant
is scheduled to open. This agreement governs
the term and operations of the unit.
*THESE FRANCHISE
REQUIREMENTS DO NOT CONSTITUTE AN OFFER TO AWARD
A FRANCHISE. SUCH AN OFFER MAY BE MADE ONLY IN
COMPLIANCE WITH APPLICABLE DISCLOSURE LAWS, IF
ANY.
Click
here to view our International Potential Franchisee
Request for Consideration.
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In
the event that we are experiencing an abnormally
high volume of inquiries, please understand
that it may take several days for you to
receive a response. On those occasions,
we sincerely appreciate your patience.
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