ScorecardWorth It?HistoryDatabaseCompareDistress Signals
QSRRevenue OnlyItem 19: ✓ DisclosedMedium Confidence · 75/100FDD data: 2023 · Stale

Papa John's Franchise Cost and Profit

FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Papa John's.

Based on 2023 FDD · 1 filing in corpus

This page is using 2023 FDD source data. Verify the franchisor's current FDD before relying on costs, fees, or Item 19.

FranchiseIQ Score
48
D
High Risk
Composite score from 3 risk dimensions. Click for breakdown ↓
Health Score
C
64/100
7/7 metrics · High confidence
Full analysis unlocks:
✓ Cash-on-Cash return
✓ Payback period
✓ SBA default rate
✓ Red flags assessment
✓ Comparable franchises
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Cost and profit at a glance

How much does a Papa John's franchise cost and make?

Based on FDDIQ's FDD corpus, a Papa John's franchise shows an estimated initial investment of $189K – $975K. Reported owner economics show $33K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.

Startup Cost
$189K – $975K
Total initial investment
Profit / Revenue
$33K
FDD Item 19 signal
Payback Signal
17.6 years
Modeled return metric
SBA Default Rate
11.5%
Loan repayment history
Compare franchise costs →Estimate franchise ROI →Check SBA default rates →Browse QSR franchises →Compare similar franchises →

Quick fee read: $25K franchise fee · 10% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.

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The unlocked report ties this brand's FDD disclosures to SBA outcomes, Item 20 movement, fee load, missing-data labels, and buyer assumptions — so you can decide whether this is worth deeper diligence.

FDD disclosure qualitySBA default outcomesItem 20 unit movementFee/cost stressComparable brands
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Papa John's Franchise Analysis

Papa John's requires a total initial investment of $189K to $975K (midpoint approximately $582K), with an initial franchise fee of $25K. The ongoing fee burden is 10% (5% royalty plus 5% advertising fund). This is below the industry average of approximately 14.2%, leaving more margin for the operator.

According to Item 19 of the 2023 FDD, the median revenue for Papa John's locations is $1.1M. The implied franchisee EBITDA is approximately $33K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 5.7% with a payback period of approximately 17.6 years.

The SBA 7(a) loan default rate of 11.5% is in line with industry norms of approximately 9.4%.

Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.

Analysis based on 2023 FDD filing. FDDIQ Editorial Team · Methodology

Total Investment Range$189K – $975K
MinMid: $582KMax

Key Metrics

Franchise Fee
$25K
Royalty Rate
5%
Ad Fund Rate
5%
Total Burden
10.0%
Royalty + ad fund
Units (2023)
-
Net Unit Growth
→ -
Year over year
Cash-on-Cash Return
5.7%
Annual estimated return
Payback Period
17.6 yrs
Break-even timeline
SBA Default Rate
11.5%
vs ~7.2% industry avg
Median Revenue
$1.1M
Item 19 disclosed
Red Flags Assessment
LOW: Single-year corpus
LOW ×1
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CoC ReturnPayback PeriodSBA Default RateMedian RevenueEbitda MarginRisk Score
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Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

Papa John's vs. QSR Average

MetricPapa John'sQSR Avg
SBA Default Rate11.5%▼9.4%
Cash-on-Cash Return5.7%▼14.2%
Total Investment$582K$380K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

SBA Loan Performance

Real lending data from SBA 7(a) loans (2015-2026). 92 loans across 24 states.

Default Rate
11.5%
High Risk
Total SBA Loans
92
24 states
Total Loan Volume
$44.0M
SBA 7(a) approved
Avg Loan Size
$478K
Per franchisee
Loan Status Breakdown
35
Paid in Full (38%)
40
Currently Active
6
Charged Off (2.2% by $)
$965K
Total Charged Off ($)
● Paid● Active● Charged Off

Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.

Compare

Papa John's vs Chick-fil-A, Inc.Papa John's vs McDonald'sPapa John's vs Get Fried

Multi-Brand Operators · Who Runs This Brand

Sun Holdings
View Hub
Dallas, TX· 1,200+ locations
60 locations of this brand
Part of a multi-brand portfolio. See how operators structure holdings, financing, and growth →
Explore all multi-brand franchise operators →

Similar Franchises · QSR

Chick-fil-A, Inc.
Revenue Only
$427K–$2.3M
McDonald's
Revenue Only
$1.5M–$2.7M
Get Fried
Revenue Only
$102K–$505K
Chick-fil-A, Inc.
$427K – $2.3M
McDonald's
$1.5M – $2.7M
Get Fried
$102K – $505K
MAGNOLIA BAKERY
$422K – $1.2M

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Questions to Ask Before You Sign

5 data-driven questions every Papa John's franchise buyer should ask.

  1. 1.What is Papa John's's SBA default rate compared to its competitors?Learn more →
  2. 2.Does Papa John's disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for Papa John's →Validation call guide →
Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.

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