FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Papa Johns.
Based on 2025 FDD · 8 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Papa Johns franchise shows an estimated initial investment of $261K – $853K. Reported owner economics show $22K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $25K franchise fee · 11% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Papa Johns requires a total initial investment of $261K to $853K (midpoint approximately $557K), with an initial franchise fee of $25K. The ongoing fee burden is 11% (5% royalty plus 6% advertising fund). This is below the industry average of approximately 14.2%, leaving more margin for the operator.
According to Item 19 of the 2025 FDD, the median revenue for Papa Johns locations is $1.1M. The implied franchisee EBITDA is approximately $22K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 4.0% with a payback period of approximately 25.3 years.
Papa Johns operates approximately 2,689 franchised units. Unit count is relatively stable with a 2.4% year-over-year change. 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 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2015-2026). 92 loans across 24 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Common questions buyers ask about Papa Johns, answered from FDD and SBA data.
The total initial investment for a Papa Johns franchise ranges from $261K to $853K, according to their Franchise Disclosure Document.
Papa Johns charges a 5% royalty fee on gross sales.
The initial franchise fee for Papa Johns is $25,000.
There are approximately 2,689 Papa Johns franchise locations as of 2023.
The median revenue for a Papa Johns franchise is $1.1M, with a cash-on-cash return of 4.0%, according to FDD Item 19 data.
Papa Johns has an SBA loan default rate of 11.5% based on SBA 7(a) loan data.
Whether a Papa Johns franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.
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