Papa John's - Franchise - Franchising

What is the total investment required for a Papa John’s Pizza Delivery Site?
This may vary and depends on several factors such as site chosen and building costs but typically an investment of between £170,000 and £225,000 (excluding freehold & VAT) of which one third £70,000 should be in liquid funds.

What do I get for my money?
At the start of the franchise agreement there is an initial fee payable for each unit and this gives you the right to use the Papa John’s trademarks, its system for preparing, marketing and selling food products, its information, specifications, know-how and other confidential and proprietary information. Included in the indicative total investment cost, there is also some allowance for management and staff training (part of the initial fee) and initial marketing support prior to opening. Most of the start-up costs are comprised of building fit-out and equipment costs which will vary, depending on your site. Package normally includes all fixtures and fittings, signage, internal signs, map and frame, estate agent's fee, legal fees, franchise fee, marketing fee, project management costs, andpre-opening expenses.

In addition to the start up costs, what are the ongoing liabilities?
There is a franchise royalty fee which is 5% of the net sales and a marketing fee of 4% of net sales. You will also be responsible for the rent, rates and utility costs of the store for the term of the Franchise Agreement.

Do I have to find my own site, builder and equipment?
Papa John’s will help with all property identification, acquisition, planning, design, construction, shop fit and equipment sourcing to franchisees as part of our franchise package.

What financial information can you give me?
Papa John’s already have over 100 franchised Delivery units in the UK and Ireland in addition to its company owned outlets. Every site will have its own specific cost profile, of which the biggest is labour. Only the franchisee will know what his/her labour cost will look like. However we will be able to supply some historic actual costs associated with running a delivery restaurant to help you work out what your business might look like. We can also give historic average financial data such as weekly sales, food costs, utility costs etc. You would then need to work out your own projections, to make sure you are happy to invest your money in your business.

What is the length of term of the Franchise Agreement?
The initial agreement is normally for 10 years. Subject to lease and other considerations, the franchise agreement is renewable by the franchisee at no additional charge.

What training and ongoing operational support is given to Franchisees?
You will receive three weeks initial training on our “Slice of Success” programme based at our national training centre in St Albans. This incorporates classroom and practical work at a company-owned store. Further training courses are offered to franchisees and their team members on an ongoing basis.
Extensive and continuous support from a dedicated Franchise Business Manager and our Restaurant Support Centre Staff will assist you with recruiting and training new staff, marketing, product control, pricing and other operational areas.

Is previous catering or retailing experience necessary?
No. Most of our franchisees did not have previous catering or retailing experience. The most successful franchisees are entrepreneurial, owner/operators and have excellent people skills.

What are the staff numbers and trading hours of an average store?
In an average new store 20 jobs are created, split 40% full-time, 60% part-time. We seek, where possible, to operate standard opening hours for all of our stores and the typical closing time is 2300hrs. There are, of course, some units that operate different hours, but these are usually in non-residential areas where other outlets are also trading after 2300hrs.