How to Buy a Papa John's Pizza Franchise

If you would like to buy a Papa John's Pizza franchise, there are decisions and considerations that have to be made beforehand. Papa John's Pizza is located in most states throughout the United States, and also in 27 other countries. Papa John's offers delicious pizzas, as well as many sides and sauces. To become a franchisee, there are requirements from the parent corporation that must be met.

Things You'll Need

• Information on Papa John's Pizza franchise

Instructions

1. Investigate Papa John's franchise owner requirements. The information can be found at papajohns.com.

2. Think about the franchise opportunity to make sure that it is the right one for you. Talk to other Papa John franchise owners to find out their experiences with the parent corporation, their sales volume, profit margins and operations.

3. Consider the financial requirements to become a Papa John's franchise owner, and decide if you qualify. Papa John's requires that the potential franchisee have an overall net worth of at least $250,000 and they also require that the potential franchisee have $250,000 in any combination of cash, liquid assets or available financing, part of which can be from the net worth as long as it is in cash or liquid form.

4. Complete an online request for consideration and wait for a Papa John's New Business Development team member to contact you.

5. Locate a third party lender, to fund the initial start up costs which will range from $160,000 to $395,000.

6. Submit a business development plan, including your resume and your personal financial statement to the Papa John's parent corporation. If you are going to franchise the restaurant as a group, the information will have to be submitted for each person. Also include your plan on how you are going to fund the Papa John's franchise.

7. Visit the Papa John's world headquarters in Louisville, Kentucky, as an invited guest. This will give you the opportunity to get a solid overview of the entire Papa John's system.

Tips & Warnings

• Make sure to contact a lawyer that specializes in business franchise law.

• The average cost of a 1200 to 1400 square foot restaurant location in a strip mall will be $220,000. The cost will vary depending upon the part of the country the restaurant is located in as well as its size.

• Papa John's provides excellent training for their franchisees. There is a three-week training program at headquarters and/or three to four weeks training at a location near the franchise. There is ongoing support in the form of meetings, newsletters, field operations and evaluations.

• Be aware that the franchise fee is $25,000 and there is an ongoing royalty fee that is 5 percent of all the net sales on a monthly basis.

• You should know that the parent corporation requires that 7 percent of the net monthly sales is spent on marketing.

• You, or one member of a franchise group, must have a background in successful business management and qualify as the Principal Operator.

• The Principal Operator must be experienced in fast food management and live in the area of the franchise.

Resources

• Go here for more information on a Papa John's Pizza franchise.