12 Sep, 2017

PAPA JOHNS FRANCHISE

 

Papa John’s franchise specializes in serving reliable and high quality pizzas. It has many franchises spread globally. Its brand name has been recognized due superior products it is offering. The company has a blog where clients can easily access products and services. Pizzas can also be ordered online.

Unlike other franchising business, Papa John’s franchise is affordable and highly profitable. You become your own boss and make independent decisions. Total investment of between $160,000- $395,000 is required to open Papa John’s franchise. The franchise fee is $25,000. Royalty fee of 5% of the gross profits is made. The royalty is made on monthly basis. You should have a net worth of $185,000 and a liquid cash of $100,000 to open franchise. The number of staff operating one franchise ranges from 20-25 depending on the size of the restaurant. Half of its franchisees own more than one franchise. Absentee ownership is allowed. The term expires after 20 years, but it can be renewed.

The franchisees are dedicated to ensure the franchisees’ businesses are successful. The franchise is offered by the following to help him or her run the business:

Training-The franchisee is trained of administrative and managerial roles. His or her staff members are trained how to prepare pizzas. The franchisee and the staff are constantly educated to improve their skills. The training program is conducted at Papa John’s headquarters and lasts for 3-4 weeks.

Ongoing support-The franchisee is provided with newsletters that contain information about new services, products and technological developments. The franchisees are offered with internet so that they can easily access the company’s website. Through the website, franchisees can easily access information about the services and products. The franchisee’s employees are trained during field research.

Marketing support-Franchisor conducts series of advertisements and promotions to sell the business’ brand. The advertisements are done through media. Market research is conducted and information about new marketing outlet, strategies and services is supplied to the franchisee. Marketing kits are also provided. Seven percent of gross profits are used for marketing budget.

Papa John’s franchise is growing currently and offering opportunities to interested entrepreneurs. The following are agreements offered to the franchisees:

·         Unit license-The agreement is made when a restaurant in a certain location. It protects the terms and ownership of the restaurant.

·         Development agreement-It governs the franchisee’s rights and development rights of the franchise. It also secures the territorial site for the franchisee.

·         Intent letter-it governs the number of franchises being opened at a certain territory. The franchises should be established in different locations to minimize competition.