2026 FDD Issued Mar 30, 2026 Minnesota Commerce (CARDS) Checked Oct 23, 2026
Papa Johns Franchise Cost (2026)
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.
- Total investment
- $281K – $890KItem 7 source and qualifications
- Franchise fee
- $5,000 – $25KItem 5 source and terms
- Royalty
- 5% of Net SalesItem 6 conditions and fee bases apply
- 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 – $890,267. This total includes the initial franchise fee.
| Expense Category | Low ($) | 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
| Format | Total 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.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty | 5% of Net Sales | Every period | 5% 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 Fee | 1.75% of Net Sales from online and digital orders | Every period | 1.75% 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) |
| Transfer | Varies | When 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) |
| Renewal | Varies | When 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 Expenses | Varies | When it applies | Cost 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) |
| Interest | Varies | When it applies | The 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 Fee | Varies | When it applies | Compensation, 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 Interest | Varies | When it applies | Costs the franchisor incurs to obtain injunctive or other relief to enforce the agreements. (Item 6, PDF p. 16) |
| Indemnification | Varies | When it applies | Reimbursement if the franchisor is held liable for claims arising from the restaurant's operation. (Item 6, PDF p. 16) |
| Marketing Fund Contributions | 6% of Net Sales | Every period | 6% 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 Fees | Varies | When it applies | Up 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 Contributions | Varies | When it applies | Set 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 Advertising | Varies | When it applies | Currently 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 Fee | Varies | When 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 month | Every 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 month | Every period | Flat $80 per month for information system support by phone and text; may increase. (Item 6, PDF p. 17) |
| PapaNet | $400 – $450 per month | Every period | $400-$450 per month for restaurant network and internet connectivity; may increase. (Item 6, PDF p. 18) |
| Hot Schedules | $33 – $55 per month | Every period | $33-$55 per month for the workforce scheduling tool, invoiced monthly. (Item 6, PDF p. 18) |
| Required Purchases | Varies | When it applies | Purchases 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 year | Every period | $150 per restaurant per year for the required online training system. (Item 6, PDF p. 18) |
| Alternative Supplier Fees | Varies | When it applies | Reasonable cost of inspecting a proposed new supplier and the actual cost of testing. (Item 6, PDF p. 18) |
| Liquidated Damages | Varies | When it applies | If 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) |
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.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise 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
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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.
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.
- Item 5: cited PDF p. 13
- Item 6: cited PDF p. 15
- Item 7: cited PDF p. 22
- Item 19: cited PDF p. 70
- Item 20: cited PDF p. 85
- Agreement term (Item 17): cited PDF p. 63
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).