Papa John’s Franchise FDD, Profits & Costs (2025)
Papa John’s, one of the largest pizza delivery chains globally, was founded in 1984 by “Papa” John Schnatter in the broom closet of his father’s tavern in Jeffersonville, Indiana.
From these humble beginnings, the brand has grown exponentially, with its headquarters now based in Louisville, Kentucky.
Papa John’s began franchising in 1985, just a year after opening its doors, which kickstarted its rapid expansion both nationally and internationally.
Papa John’s stands out in the competitive pizza market with its commitment to “Better Ingredients, Better Pizza.” This philosophy has resonated well with customers, underpinning the brand’s emphasis on quality.
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Initial Investment
How much does it cost to start a Papa John’s franchise? It costs on average between $111,000 – $853,000 to start a Papa John’s franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property. Indeed, Papa John’s offers 2 types of franchises:
| Franchise Type | Initial Investment Range |
|---|---|
| Standard Papa John’s Franchise | $261,165 to $853,365 |
| Non-Traditional Papa John’s Franchise | $111,000 to $403,915 |
We are summarizing below the main costs associated with opening a Standard Papa John’s franchise restaurant. For more information on the costs required to start a Papa John’s franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee; Development Fee Deposit | $5,000 – $25,000 |
| GIS New Store Map Package | $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 |
| On-Site Installation Fee | $2,000 – $5,000 |
| Help Desk Service Fee | $240 |
| Software Maintenance Fee | $1,125 |
| Signage | $7,300 – $35,000 |
| Test Fit Fee | $950 |
| First Month’s Rent | $2,500 – $8,500 |
| Security Deposit and 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 |
| Total Estimated Initial Investment | $261,165 – $853,365 |
Average Revenue (AUV)
How much revenue can you make with a Papa John’s franchise? A Papa John’s franchised restaurant makes on average $1,068,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $958,000 yearly revenue for similar pizza franchises. Below are a few Papa John’s competitors as a comparison:
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Papa John’s Franchise Disclosure Document
Frequently Asked Questions
How many Papa John’s locations are there?
As of the latest data, Papa John’s operates a total of 3,291 locations. Of these, 2,752 are franchised units, while 539 are company-owned.
What is the total investment required to open a Papa John’s franchise?
The total investment required to open a Papa John’s franchise ranges from $110,000 to $853,000.
What are the ongoing fees for a Papa John’s franchise?
Papa John’s franchisees must pay an ongoing royalty fee of 5% of net sales and a marketing/advertising fee of 8% of net sales.
What are the financial requirements to become a Papa John’s franchisee?
To become a Papa John’s franchisee, you are required to have a minimum net worth of $250,000 and liquid assets of at least $75,000 to cover the required investment and operational costs. These financial commitments help ensure that franchisees can maintain operations and contribute to brand consistency across locations.
How much can a Papa John’s franchise owner expect to earn?
The average gross sales for a Papa John’s franchise are approximately $1.07 million per location. Assuming a 15% operating profit margin, $1.07 million yearly revenue can result in $161,000 EBITDA annually.
Disclaimer
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