How Much Does a Papa Johns Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$111K – $853K
Franchise Fee
$25K
Royalty
5.0%
Ad Fund
6.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Papa Johns is $25K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Papa Johns franchise requires a total investment of $111K – $853K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $20K to $50K.
Ongoing Costs
Beyond the initial investment, Papa Johns franchisees pay ongoing fees. The royalty fee is 5.0% of gross sales (Percentage of Net Sales). The advertising or brand fund contribution is 6.0% of gross sales. There is also a technology fee of $2.
Net Worth & Liquid Capital Requirements
Papa Johns requires working capital of $20K – $50K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Papa Johns's Item 19 financial performance representation:
Median gross sales: $1.1M
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Papa Johns?
SBA Loans Issued
323
Default Rate
18.1%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Papa Johns has 323 SBA-backed loans on record. The default rate is 18.1%, which is near the franchise industry average. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
Talk to current Papa Johns franchise owners
Get verified franchisee phone numbers for due diligence
See full Papa Johns research
Risk analysis, unit growth, contract terms, and more
Compare Papa Johns to similar franchises
Side-by-side investment, revenue, and risk comparison