Independent research from Franchise Disclosure DocumentsFDD sources and qualifications shown
TrueFranchiseCost

2026 FDD Issued Mar 30, 2026 Minnesota Commerce (CARDS) Checked Oct 23, 2026

Papa Johns Franchise Cost (2026)

By Swet Parvadiya Author review by Swet Parvadiya Updated Oct 29, 2026 Source: Papa Johns 2026 FDD

A Papa Johns franchise costs an estimated $281,485 – $890,267 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $5,000 – $25,000 initial franchise fee (Item 5) and covers this format: Standard Restaurant. Item 6 lists royalty: 5% of Net Sales, subject to the conditions below.

Initial Investment $281,485 – $890,267 Item 7 total
Franchise Fee $5,000 – $25,000 Item 5 fee
Royalty Fee 5% of Net Sales Item 6 terms
Brand Fund 6% of Net Sales Item 6 terms

Category: Restaurants & Food Sources

Total investment
$281K – $890KItem 7 source and qualifications
Franchise fee
$5,000 – $25KItem 5 source and terms
Brand fund
6% of Net SalesItem 6 conditions and fee bases apply
Units (2025)
3,294Item 20 source and scope
Franchise exit rate
1.9% / yrCalculated 3-year average; definition and source

What stands out about Papa Johns

The opening-cost table includes Standard and Small-Town restaurant formats, while the reproduced Item 19 sales results cover standard franchised restaurants only. Those scopes are different. A reader cannot apply the reported standard-restaurant average to every format in the investment section without checking the source qualifications.

The financial-performance table presents total-sample and cumulative or quartile subsets with different counts. The average for a high-sales subset is not the full-sample average. Net Royalty Sales remain a revenue measure before operating costs, and the FDD’s exclusions determine which formats the figures describe.

What are the initial franchise fees and financial requirements for Papa Johns?

Item 5 lists an initial franchise fee of $5,000 – $25,000 for Papa Johns. Check the cited Item 5 for payment timing, discounts and format-specific terms.

Item 5 (PDF pages 13-15) says the initial franchise fee for a standard restaurant ranges from $5,000 to $25,000 depending on incentives, the development commitment, the franchisee's finances and experience, and negotiation; it is not uniform. Under a Development Agreement, a non-refundable Development Fee Deposit of $5,000-$25,000 per scheduled restaurant is paid at signing and credited against each restaurant's initial fee. Non-Traditional and Small-Town restaurants pay a uniform $5,000. Before opening, standard restaurants also pay the franchisor or its affiliates for the information system, GIS map package, on-site support and installation, the first month of technology fees, a test fit and opening inventory: $38,376-$80,426 in total including the fee.

Source: Papa Johns 2026 FDD, Item 5, PDF p. 13.

This record lists no minimum net worth or liquid-capital requirement for Papa Johns, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.

How much does it cost to open a Papa Johns franchise? (Item 7)

Source: Papa Johns 2026 FDD, Item 7, PDF p. 22.

Item 7 of Papa Johns’s 2026 Franchise Disclosure Document estimates the total cost to open one standard restaurant at $281,485 – $890,267. This total includes the initial franchise fee.

Papa Johns Item 7 Estimated Initial Investment Breakdown (2026 FDD)
Expense CategoryLow ($)High ($)
Initial Franchise Fee / Development Fee Deposit$5,000$25,000
GIS New Store Map Package$1,071$1,071
Construction / Leasehold Improvements$102,000$365,000
Furniture, Fixtures and Equipment$77,000$239,000
Information System$20,000$30,000
On-Site Support Fee$2,500$2,500
On-Site Installation Fee$2,000$5,000
Help Desk Service Fee$240$240
Software Maintenance Fee$1,125$1,491
PapaNet$1,200$1,350
Hot Schedules$99$165
Signage$7,300$30,000
Test Fit Fee$950$950
First Month's Rent$2,500$8,500
Security Deposit and other deposits, Insurance Premium$2,500$10,000
Opening Inventory and Supplies$6,000$15,000
Opening Advertising$10,000$30,000
Training Expenses$15,000$50,000
Miscellaneous Opening Costs$5,000$25,000
Additional Funds – 3 months$20,000$50,000
Total$281,485$890,267

Other formats

Papa Johns Alternative Format Investment Totals
FormatTotal investment
Non-Traditional Restaurant$125,000 – $423,302

For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.

Item 7 (PDF pages 22-23) prints $281,485-$890,267 for the Standard/Small-Town restaurant table. Construction and leasehold improvements are $102,000-$365,000; furniture, fixtures and equipment are $77,000-$239,000; opening inventory and supplies are $6,000-$15,000; additional funds for three months are $20,000-$50,000. Non-Traditional restaurants have a separate table.

What ongoing royalties and fees does Papa Johns charge? (Item 6)

Source: Papa Johns 2026 FDD, Item 6, PDF p. 15.

Item 6 of Papa Johns’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.

How to read an Item 6 fee table.

Papa Johns Item 6 Ongoing Royalties and Fee Schedule (2026 FDD)
Fee TypeAmount / RatePayment FrequencyNotes & Source
Royalty5% of Net SalesEvery period5% of Net Sales each period for Traditional and Non-Traditional restaurants and 6% for Small-Town restaurants (whose royalty includes their marketing contribution), debited on the 10th. Item 6 note 2 says royalty may be raised up to 6% of Net Sales only if the agreement then offered to new franchisees has at least that rate. (Item 6, PDF p. 15)
Digital Fee1.75% of Net Sales from online and digital ordersEvery period1.75% of Net Sales placed through online and digital ordering, including aggregator orders, debited on the 20th. It applies only to that share of sales; the Marketing Fund board may raise or lower it (Item 6 note 6). (Item 6, PDF p. 16)
TransferVariesWhen it applies$4,000; $4,000 per transferee if multiple restaurants go to more than one unaffiliated transferee, or $8,000 in total if they go to more than one affiliated transferee. Due before the transfer closes. (Item 6, PDF p. 16)
RenewalVariesWhen it applies$4,000 for a Traditional restaurant and $1,000 for a Non-Traditional or Small-Town restaurant, on signing the renewal agreement if the renewal conditions are met. (Item 6, PDF p. 16)
Audit ExpensesVariesWhen it appliesCost of the audit plus the understatement with 12% annual interest, payable only if the understatement is greater than 5%; due 10 days after billing. (Item 6, PDF p. 16)
InterestVariesWhen it appliesThe lesser of 12% per year or the maximum legal rate on sums not paid when due to the franchisor, the Marketing Fund or affiliates. (Item 6, PDF p. 16)
Management FeeVariesWhen it appliesCompensation, travel and living expenses of a manager the franchisor appoints if the Principal Operator stops managing, plus a $200 per diem fee. (Item 6, PDF p. 16)
Costs, Attorneys' Fees and Prejudgment InterestVariesWhen it appliesCosts the franchisor incurs to obtain injunctive or other relief to enforce the agreements. (Item 6, PDF p. 16)
IndemnificationVariesWhen it appliesReimbursement if the franchisor is held liable for claims arising from the restaurant's operation. (Item 6, PDF p. 16)
Marketing Fund Contributions6% of Net SalesEvery period6% of Net Sales for Traditional restaurants under the Marketing Fund's NMF Initiative from April 1, 2024 to December 30, 2029, reverting to 5% if the standard royalty is raised. Non-Traditional restaurants pay 25% of the standard rate (currently 1.5%); Small-Town restaurants' contribution is included in their royalty (Item 6 note 7, PDF page 20). (Item 6, PDF p. 17)
Papa Card Transaction and IVR FeesVariesWhen it appliesUp to 2% of Papa Card redemption transactions unless the franchisor approves a higher rate; Non-Traditional restaurants generally do not participate. (Item 6, PDF p. 17)
Cooperative ContributionsVariesWhen it appliesSet by cooperative vote. Participation is voluntary under the NMF Initiative until December 30, 2029; if it becomes mandatory, the minimum would be 2% of Net Sales (Item 6 note 10). (Item 6, PDF p. 17)
Local AdvertisingVariesWhen it appliesCurrently voluntary and at the franchisee's discretion until December 30, 2029; it may become mandatory afterward or if the NMF Initiative changes (Item 6 notes 11-12). Grand opening spending of at least $10,000 (standard) or $5,000 (Small-Town) is still required. (Item 6, PDF p. 17)
On-Site Installation and Support FeeVariesWhen it applies$2,200 for a standard two-day installation of the Designated Software and $1,100 for each additional day; may increase. (Item 6, PDF p. 17)
Software Maintenance Fee$375 per monthEvery period$375 per month for software maintenance, development, upgrades and installation media; may increase (Item 7 shows $375-$497 per month). (Item 6, PDF p. 17)
Help Desk Service Fee$80 per monthEvery periodFlat $80 per month for information system support by phone and text; may increase. (Item 6, PDF p. 17)
PapaNet$400 – $450 per monthEvery period$400-$450 per month for restaurant network and internet connectivity; may increase. (Item 6, PDF p. 18)
Hot Schedules$33 – $55 per monthEvery period$33-$55 per month for the workforce scheduling tool, invoiced monthly. (Item 6, PDF p. 18)
Required PurchasesVariesWhen it appliesPurchases from the franchisor or affiliates, including the information system, Designated Software, pizza dough and pizza sauce; other items such as cheese and toppings may be bought from affiliates. (Item 6, PDF p. 18)
Training Fees$150 per yearEvery period$150 per restaurant per year for the required online training system. (Item 6, PDF p. 18)
Alternative Supplier FeesVariesWhen it appliesReasonable cost of inspecting a proposed new supplier and the actual cost of testing. (Item 6, PDF p. 18)
Liquidated DamagesVariesWhen it appliesIf the agreement is terminated for the franchisee's breach or default: the average royalty for the 12 months before termination multiplied by 24. (Item 6, PDF p. 18)
Interactive Fee & Payback Tool

Explore annual fees and payback assumptions

This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.

Papa Johns startup investment and modeled fees over 10 years

Some recurring charges depend on a sales subset, usage or another amount not supplied by the annual sales figure. We do not combine them into an all-sales percentage or estimate total fees. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.

Item 20: Papa Johns franchised outlet history

Source: Papa Johns 2026 FDD, Item 20, PDF p. 85.

Item 20 Table 3 reports 2,832 franchised outlets at the end of 2025. The company-owned table reports a further 462 outlets. Our calculated average annual franchised exit rate is 1.9% across the 3 reported years, using the definition below.

Papa Johns Item 20 Outlet Turnover History (2023–2025)
YearFranchised at StartOpenedReported ExitsAt EndFranchise Exit Rate (%)
2023 2,658 73 42 2,689 1.6%
2024 2,689 90 27 2,752 1%
2025 2,752 162 82 2,832 3%

Franchised units went from 2,658 to 2,832 over 3 years (+174).

Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare Papa Johns’s exit rate with other brands.

125 units changed owners in 2025.

Item 20 Table 3 (PDF pages 82-85) prints national totals on PDF page 85. Table 1 (PDF page 78) covers the United States only; company-owned counts include majority-owned franchisees (Table 4, PDF pages 86-88). Transfers come from Table 2 (PDF pages 79-82).

How much do Papa Johns franchise owners make? (Item 19)

Source: Papa Johns 2026 FDD, Item 19, PDF p. 72.

Item 19 of the 2026 FDD reports average net sales for franchised restaurants open full year of $1,097,987 (2025, 2,389 standard franchised restaurants open all 12 months in 2025). Papa Johns’s Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees such as the royalty (5% of Net Sales) come out of sales before an owner is paid, so these figures cannot show what an owner earns.

See every Papa Johns Item 19 figure, with its period and sample.

Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.

How to interpret Papa Johns’s Item 19 figures and sample limits.

How long is the Papa Johns franchise agreement term?

Source: Papa Johns 2026 FDD, Item 17, PDF p. 63.

The standard Papa Johns franchise agreement runs 10 years, with renewal terms of 10 years.

Item 17 (PDF page 63) lists a ten-year initial term and ten-year renewal for a standard restaurant, subject to the stated conditions. Non-Traditional and Small Town restaurants have five-year initial terms and five-year renewals; the Small Town agreement has a second five-year renewal option, subject to conditions.

How long does it take to open a Papa Johns franchise? (Item 11)

Source: Papa Johns 2026 FDD, Item 11, PDF p. 40.

Item 11 of the 2026 FDD states the time from signing the franchise agreement to opening: 15 to 20 days.

From signing the Development Agreement to opening the first restaurant, Item 11 estimates 90 to 120 days, which includes that interval.

Franchises with a similar investment range

These published records are selected by proximity to Papa Johns’s $281,485 low-end Item 7 investment, starting with Restaurants & Food. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:

Compare other restaurants & food franchises

Frequently Asked Questions about Papa Johns

How much does it cost to open a Papa Johns restaurant?
Item 7 of the 2026 FDD estimates $281,485 – $890,267 for a standard or Small-Town restaurant. Non-traditional restaurants have a separate, lower estimate, and construction or leasehold improvements are the widest line in the standard table.
What ongoing fees does Papa Johns charge?
Item 6 lists a royalty of 5% of Net Sales for a traditional restaurant and a marketing fund contribution of 6% of Net Sales, plus a digital fee on online orders and several monthly technology fees. Small-Town restaurants pay a different royalty that includes their marketing contribution.
How long is a Papa Johns franchise agreement?
A standard franchise agreement runs 10 years, with one renewal term if the franchisee meets the requirements. Non-traditional and Small-Town agreements have shorter terms.
What does Papa Johns report in Item 19?
Item 19 reports average net royalty sales of $1,097,987 for standard franchised restaurants open all of 2025. Non-traditional and Small-Town restaurants are excluded, and the figure is sales before costs.
Swet Parvadiya
By

Swet Parvadiya

Founder & Lead Research Editor

Founder and lead research editor of TrueFranchiseCost. Background in software engineering and data systems, analyzing official Franchise Disclosure Documents (FDDs) filed with state regulators. Specializes in Item 7 startup budgets, recurring Item 6 fee rules, and Item 19 financial performance disclosures.

Author review by: Swet Parvadiya (Founder & Lead Research Editor)

Sources

Papa John's Franchising, LLC Franchise Disclosure Document, issued March 30, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.

Page references for Papa Johns use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.

If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.

Document & verification changelog

  • October 29, 2026: Record updated.
  • October 23, 2026: Source check completed against the recorded FDD.
  • October 23, 2026: Complete source recheck against the March 30, 2026 FDD, confirmed as the newest clean Minnesota filing: cover, Item 1, Item 5, all 22 Item 6 rows and notes (PDF pages 15-21), every Item 7 row and total, Item 17, Item 19 and Item 20 Tables 1-4. Replaced the Item 6 schedule, which had misstated the marketing fund, digital, renewal, audit and interest terms and omitted several rows; removed an unsourced franchising start year; corrected the Item 20 page. The source hold is cleared.
  • October 19, 2026: Source review hold recorded: The October 19 audit corrected conflicting Item 7 prose, selected financial-performance labels and PDF references. The fee schedule and remaining record sections still require a complete source recheck; the historical source-check date is not renewed by these targeted corrections.
  • October 16, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued March 30, 2026).