Papa John's Franchise Review

In 1984, the now-world famous pizza brand Papastatement must be submitted as well as the resume
John's had opened its first restaurant and from 1986 itof the Principal Operator candidate.
had started franchising. Papa Johns franchises standsGlobal Franchise Fees
at more than 3,000 restaurants worldwide all of which• For a Papa John's standard restaurant, the
are committed to fulfill the promise of the brand "Betterfranchise fee stands at US$25,000 per unit.
Ingredients. Better Pizza." Want to become a part of• On a monthly basis, 5% of net sales royalty or
this growing Papa John's franchising network which isongoing management service fee is applicable.
spread over China, United Kingdom, United Arab• It is the requirement of Papa John's that each
Emirates, Malaysia, Canada, and many morefranchisee should spent minimum 6% of net monthly
countries?sales for marketing purposes. The percentage
Financial Requirementsdistribution should be 5.5% must be spent on local
The development agreements of Papa John's usuallymarketing and 0.5% should be paid, to a fund involved
require a franchisee to be having in operation in ain global marketing.
specific location, a minimum number of restaurantsGlobal Franchise Agreements
within a time limit of three to seven years. To make• Intent Letter: This letter is non-binding and it outlines,
this happen, prospective franchisees should haveour knowledge of the territory and amount of units to
supply of significant cash and net worth. Papa John'sbe built in the specific territory and this needs a deposit.
usually requires, a minimum net worth of US$2,000,000If a Development Agreement or a Master Franchise is
with extra cash/liquid assets requirements as well.signed then it is against, the exclusivity fee that the
Ownership Requirementsdeposit will be credited.
• At least, one partner of the group applying for• Development Agreement: This is a binding
franchise should be from a business background andagreement which states down, all development
one partner should have sufficient, experience in retailobligations and rights as well as the development and
or restaurant management.territory schedule. We will consider only under certain
• All throughout the time of the existence of theconditions, a Master Franchise Agreement that will
franchise group, the Principal Operator will have to stayallow sub-franchising.
in the area going to be developed and he should have• Unit License Agreement: This agreement is signed
previous experience in management relative, to thewhen; a particular restaurant is stated to open. The
amount of units that are to be developed.agreement governs the operations and terms of the
• For each member making up the proposedunit.
franchise group, a personal resume and financial