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U.S.
FRANCHISE REQUIREMENTS AND FEES
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 $250,000; and $250,000 per
restaurant in cash, liquid assets, available
financing, or a combination thereof.
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4-10
units |
- Minimum
net worth of $1,000,000; and $250,000
per restaurant in cash, liquid assets,
available financing, or a combination
thereof.
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11
or more |
-
Minimum net worth of $2,000,000; and $250,000
per restaurant in cash, liquid assets,
available financing, or a combination
thereof.
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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.
Additional
franchisee qualifications and requirements include:
- The
prospective franchise group should have at least
one partner with a successful business management
background and one partner who qualifies as
the Principal Operator.
- The
Principal Operator must live in the area to
be developed throughout the term of the franchise
group’s existence.
- The
Principal Operator must have prior fast food
general management experience relative to the
number of units to be developed and must own
or have the right to acquire at least 5% equity
in the business within 12 months of hire date.
- A
Personal Financial Statement and resume must
be submitted for each member of the proposed
franchise group; a resume must be submitted
for the Principal Operator candidate.
Franchise
Fees
- The
initial franchise fee is $25,000 per restaurant.
- An
ongoing royalty fee of 5% of net sales is due
on a monthly basis.
- Papa John's requires that a minimum of 7% of net monthly sales be spent by each franchisee for marketing purposes*, as follows: 2.7% national fund, 4.3% co-op and/or local marketing initiatives. Also, $9,000 must be spent on grand opening advertising for your first two restaurants.
*Papa
John’s Franchise Offering Circular includes
more detailed information regarding marketing
and advertising fees.
*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 U.S. 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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