In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Papa Johns franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Papa Johns franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Papa Johns outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Papa Johns franchise opportunity

Section V – Presentation and analysis of Papa Johns financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest net sales for the top 25%, top 50%, top 75%, bottom 25%, bottom 50%, bottom 75%, and all 2,863 standard Papa Johns restaurants (company-owned and franchised) that were open the entire year of 2023

• 2023 average, median, highest, and lowest net sales for the top 25%, top 50%, top 75%, bottom 25%, bottom 50%, bottom 75%, and all 2,350 standard franchised Papa Johns restaurants that were open the entire year of 2023

• 2023 average, median, highest, and lowest net sales for the top 25%, top 50%, top 75%, bottom 25%, bottom 50%, bottom 75%, and all 513 standard company-owned Papa Johns restaurants that were open the entire year of 2023

• 2019, 2020, 2021, 2022, and 2023 weekly per store average net sales for standard franchised and company-owned Papa Johns restaurants, separately stated

Section VI – Key ratios, comparables, computations, and analyses for the Papa Johns franchise opportunity (exclusive content for Platinum subscribers)

Section I – Papa Johns Franchise Costs

• Initial Franchise Fee; Development Fee Deposit:  $5,000 to $25,000
• GIS New Store Map Package:  $1,050
• Construction/Leasehold Improvements:  $120,000 to $375,000
• Furniture, Fixtures, and Equipment:  $77,000 to $252,000
• Information System:  $20,000 to $30,000
• On-Site Support Fee:  $2,500
• On-Site Installation Fee:  $2,000 to $5,000
• Help Desk Service Fee:  $240
• Software Maintenance Fee:  $1,125
• Signage:  $7,300 to $36,000
• First Month’s Rent:  $1,200 to $5,000
• Security Deposit and Other Deposits, Insurance Premium:  $500 to $8,500
• Opening Inventory and Supplies:  $6,000 to $15,000
• Opening Advertising:  $3,000 to $10,000
• Training Expenses:  $1,000 to $30,000
• Miscellaneous Opening Costs:  $5,000 to $25,000
• Additional Funds – 3 Months:  $20,000 to $50,000
• Total Estimated Papa Johns Franchise Costs (Pre-Opening and First 3 Months of Operation):  $272,915 to $871,415

Section II – Papa Johns Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $5,000 to $25,000
• Royalty:  5% of Net Sales of the Restaurant for each period for Traditional and Non-Traditional Restaurants; 6% for Small Town Non-Traditional Restaurants
• Digital Fee:  1.50% of Net Sales via digital/internet on-line ordering including aggregator orders
• Marketing Fund Contributions:  6% of Net Sales. Non-Traditional Restaurants pay 25% of the standard rate.
• Cooperative Contributions:  amount determined by Cooperative member vote
• Local Advertising:  currently voluntary and amounts spent are discretionary

Section III – Number of Franchised and Company-Owned Papa Johns Outlets

Franchised

2021

• Outlets at the Start of the Year:  2,546
• Outlets at the End of the Year:  2,564
• Net Change:  +18

2022

• Outlets at the Start of the Year:  2,564
• Outlets at the End of the Year:  2,658
• Net Change:  +94

2023

• Outlets at the Start of the Year:  2,658
• Outlets at the End of the Year:  2,689
• Net Change:  +31

Company-Owned

2021

• Outlets at the Start of the Year:  588
• Outlets at the End of the Year:  600
• Net Change:  +12

2022

• Outlets at the Start of the Year:  600
• Outlets at the End of the Year:  522
• Net Change:  -78

2023

• Outlets at the Start of the Year:  522
• Outlets at the End of the Year:  531
• Net Change:  +9

Section IV – News Updates on the Papa Johns Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Papa Johns Franchise (Item 19, 2024 FDD)

• Presented below are average and median Restaurant-level sales of Papa Johns’ domestic franchised and company-owned Papa Johns Restaurants for its fiscal year ended December 31, 2023, along with weekly per store sales averages for its domestic franchised and company-owned Papa Johns Restaurants.

• All information in the following financial performance representations is based on actual, historical results.

• The following tables and notes refer only to standard (or “traditional”) Papa Johns Restaurants in the US. Performance data for Non-Traditional Restaurants varies widely, depending upon the nature of the non-traditional location, number of events or sales dates, and other widely varying factors. Thus, this Item 19 is applicable to traditional Papa Johns Restaurants only.

Part 1 – Net Sales Summary of System

• The following tables provide the average, median, and range of Net Sales on a category and cumulative basis of the 2,863 standard Restaurants (company-owned and franchised) that were open the entire year of 2023.

Top 25% of United States

• Number of Stores in Category:  716
• Lowest Net Sales:  $1,473,541
• Highest Net Sales:  $3,216,614
• Average Net Sales:  $1,787,418
• Median Net Sales:  $1,704,829
• Number of Stores Meeting or Exceeding the Average:  278
• Percentage of Stores Meeting or Exceeding the Average:  38.8%

Top 50% of United States

• Number of Stores in Category:  1,432
• Lowest Net Sales:  $1,179,700
• Highest Net Sales:  $3,216,614
• Average Net Sales:  $1,552,072
• Median Net Sales:  $1,472,927
• Number of Stores Meeting or Exceeding the Average:  556
• Percentage of Stores Meeting or Exceeding the Average:  38.8%

Top 75% of United States

• Number of Stores in Category:  2,147
• Lowest Net Sales:  $933,514
• Highest Net Sales:  $3,216,614
• Average Net Sales:  $1,387,751
• Median Net Sales:  $1,313,622
• Number of Stores Meeting or Exceeding the Average:  896
• Percentage of Stores Meeting or Exceeding the Average:  41.7%

Bottom 25% of United States

• Number of Stores in Category:  716
• Lowest Net Sales:  $260,865
• Highest Net Sales:  $932,487
• Average Net Sales:  $762,096
• Median Net Sales:  $790,445
• Number of Stores Meeting or Exceeding the Average:  415
• Percentage of Stores Meeting or Exceeding the Average:  58.0%

Bottom 50% of United States

• Number of Stores in Category:  1,431
• Lowest Net Sales:  $260,865
• Highest Net Sales:  $1,179,648
• Average Net Sales:  $910,268
• Median Net Sales:  $932,487
• Number of Stores Meeting or Exceeding the Average:  787
• Percentage of Stores Meeting or Exceeding the Average:  55.0%

Bottom 75% of United States

• Number of Stores in Category:  2,147
• Lowest Net Sales:  $260,865
• Highest Net Sales:  $1,472,312
• Average Net Sales:  $1,045,817
• Median Net Sales:  $1,059,420
• Number of Stores Meeting or Exceeding the Average:  1,110
• Percentage of Stores Meeting or Exceeding the Average:  51.7%

Total

• Number of Stores in Category:  2,863
• Lowest Net Sales:  $260,865
• Highest Net Sales:  $3,216,614
• Average Net Sales:  $1,231,282
• Median Net Sales:  $1,179,700
• Number of Stores Meeting or Exceeding the Average:  1,282
• Percentage of Stores Meeting or Exceeding the Average:  44.8%

Part 2 – Net Sales Summary of Franchised Restaurants

• The following tables provide the average, median, and range of Net Sales on a category and cumulative basis of the 2,350 standard franchised Restaurants that were open the entire year of 2023.

Top 25% of United States

• Number of Stores in Category:  588
• Lowest Net Sales:  $1,426,994
• Highest Net Sales:  $3,216,614
• Average Net Sales:  $1,743,746
• Median Net Sales:  $1,661,364
• Number of Stores Meeting or Exceeding the Average:  227
• Percentage of Stores Meeting or Exceeding the Average:  38.6%

Top 50% of United States

• Number of Stores in Category:  1,175
• Lowest Net Sales:  $1,134,790
• Highest Net Sales:  $3,216,614
• Average Net Sales:  $1,506,915
• Median Net Sales:  $1,426,994
• Number of Stores Meeting or Exceeding the Average:  474
• Percentage of Stores Meeting or Exceeding the Average:  40.3%

Top 75% of United States

• Number of Stores in Category:  1,762
• Lowest Net Sales:  $901,272
• Highest Net Sales:  $3,216,614
• Average Net Sales:  $1,344,018
• Median Net Sales:  $1,263,635
• Number of Stores Meeting or Exceeding the Average:  731
• Percentage of Stores Meeting or Exceeding the Average:  41.5%

Bottom 25% of United States

• Number of Stores in Category:  588
• Lowest Net Sales:  $260,865
• Highest Net Sales:  $899,803
• Average Net Sales:  $734,918
• Median Net Sales:  $762,143
• Number of Stores Meeting or Exceeding the Average:  340
• Percentage of Stores Meeting or Exceeding the Average:  57.8%

Bottom 50% of United States

• Number of Stores in Category:  1,175
• Lowest Net Sales:  $260,865
• Highest Net Sales:  $1,134,760
• Average Net Sales:  $876,311
• Median Net Sales:  $899,803
• Number of Stores Meeting or Exceeding the Average:  654
• Percentage of Stores Meeting or Exceeding the Average:  55.7%

Bottom 75% of United States

• Number of Stores in Category:  1,762
• Lowest Net Sales:  $260,865
• Highest Net Sales:  $1,426,256
• Average Net Sales:  $1,007,360
• Median Net Sales:  $1,013,901
• Number of Stores Meeting or Exceeding the Average:  902
• Percentage of Stores Meeting or Exceeding the Average:  51.2%

Total

• Number of Stores in Category:  2,350
• Lowest Net Sales:  $260,865
• Highest Net Sales:  $3,216,614
• Average Net Sales:  $1,191,613
• Median Net Sales:  $1,134,775
• Number of Stores Meeting or Exceeding the Average:  1,036
• Percentage of Stores Meeting or Exceeding the Average:  44.1%

Part 3 – Net Sales Summary of Company-Owned Restaurants

• The following tables provide the average, median, and range of Net Sales on a category and cumulative basis of the 513 standard company owned Restaurants that were open the entire year of 2023.

Top 25% of United States

• Number of Stores in Category:  129
• Lowest Net Sales:  $1,629,334
• Highest Net Sales:  $3,087,969
• Average Net Sales:  $1,940,831
• Median Net Sales:  $1,883,575
• Number of Stores Meeting or Exceeding the Average:  46
• Percentage of Stores Meeting or Exceeding the Average:  35.7%

Top 50% of United States

• Number of Stores in Category:  257
• Lowest Net Sales:  $1,363,973
• Highest Net Sales:  $3,087,969
• Average Net Sales:  $1,711,247
• Median Net Sales:  $1,629,334
• Number of Stores Meeting or Exceeding the Average:  103
• Percentage of Stores Meeting or Exceeding the Average:  40.1%

Top 75% of United States

• Number of Stores in Category:  385
• Lowest Net Sales:  $1,140,053
• Highest Net Sales:  $3,087,969
• Average Net Sales:  $1,558,721
• Median Net Sales:  $1,471,619
• Number of Stores Meeting or Exceeding the Average:  152
• Percentage of Stores Meeting or Exceeding the Average:  39.5%

Bottom 25% of United States

• Number of Stores in Category:  128
• Lowest Net Sales:  $414,883
• Highest Net Sales:  $1,137,894
• Average Net Sales:  $974,706
• Median Net Sales:  $998,482
• Number of Stores Meeting or Exceeding the Average:  75
• Percentage of Stores Meeting or Exceeding the Average:  58.6%

Bottom 50% of United States

• Number of Stores in Category:  256
• Lowest Net Sales:  $414,883
• Highest Net Sales:  $1,363,030
• Average Net Sales:  $1,113,593
• Median Net Sales:  $1,138,973
• Number of Stores Meeting or Exceeding the Average:  145
• Percentage of Stores Meeting or Exceeding the Average:  56.6%

Bottom 75% of United States

• Number of Stores in Category:  384
• Lowest Net Sales:  $414,883
• Highest Net Sales:  $1,626,948
• Average Net Sales:  $1,235,685
• Median Net Sales:  $1,253,207
• Number of Stores Meeting or Exceeding the Average:  203
• Percentage of Stores Meeting or Exceeding the Average:  52.9%

Total

• Number of Stores in Category:  513
• Lowest Net Sales:  $414,883
• Highest Net Sales:  $3,087,969
• Average Net Sales:  $1,413,002
• Median Net Sales:  $1,363,973
• Number of Stores Meeting or Exceeding the Average:  227
• Percentage of Stores Meeting or Exceeding the Average:  44.2%

Part 4 – Weekly Per Store Net Sales Average for Corporate and Franchise Restaurants

• The following tables provide the Weekly Per Store Average Net Sales for standard franchise and company owned Restaurants for the years 2019-2023.

2019

• Franchised (2,270 Stores):  $16,358
• Corporate (570 Stores):  $21,622
• Combined (2,840 Stores):  $17,414

2020

• Franchised (2,257 Stores):  $19,658
• Corporate (577 Stores):  $23,279
• Combined (2,834 Stores):  $20,395

2021

• Franchised (2,265 Stores):  $22,006
• Corporate (579 Stores):  $25,787
• Combined (2,844 Stores):  $22,776

2022

• Franchised (2,337 Stores):  $22,344
• Corporate (501 Stores):  $27,087
• Combined (2,838 Stores):  $23,182

2023

• Franchised (2,350 Stores):  $22,483
• Corporate (513 Stores):  $26,660
• Combined (2,863 Stores):  $23,232

Restaurant and Market Maturity

• Sales of a particular Restaurant may be affected by how long the Restaurant has been in operation and how successfully the surrounding market has been penetrated. Typically, sales “ramp up” as the Restaurant and market develop. Greater penetration (the greater the number and concentration of Restaurants) in a market also may affect performance.

• The foregoing company-owned Restaurant data represents averages for all of Papa Johns’ standard domestic Restaurants, some of which are long-established in their location and some of which are relatively new. Most of the company-owned Restaurants are in highly-developed and highly-penetrated markets.

Market Location

• Papa Johns’ company-owned Restaurants are typically clustered in and around major metropolitan areas, such as Atlanta, St. Louis, and Nashville. Many franchised Restaurants are operated in less densely-populated areas, with more limited access to advertising media.

• Some Restaurants have earned this amount. Your individual results may differ. There is no assurance you will earn as much.

Section VI – Papa John’s Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️