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Papa John's International

Papa John's International, headquartered in Louisville, KY., is the world's third-largest pizza company, owning and franchising over 3,400 restaurants in all 50 states and 29 countries. For nine out of the last ten years, consumers have rated Papa John's #1 in customer satisfaction among all national pizza chains and #1 seven out of the last ten years among all national Quick Service Restaurant (QSR) chains in the highly regarded American Customer Satisfaction Index (ACSI).

Franchisor Background

Year Established:

1985

Franchising Since:

1986

Operating Units:
Franchised Units:	3,891	86.7%
Company-Owned Units:	598	13.3%
	______	_____
Total Operating Units:	4,489	100%

Geographic Distribution:
U.S.:	3,250	99.4%	In 50 States
Canada:	19	0.6%	In 7 Canadian Provinces
International:	0	0%	In 498 Foreign Countries
	______	_____
Total:	3,269	100%

North America:
States/Provinces with the largest number of operating units:
Density	Units
1. Florida	247
2. Texas	211
3. California	207

Registered in Following Registration States:

Financial Requirements

Investment:
Minimum Net Worth:	$250K-2MM
Cash Investment:	$varies
Total Investment:	$115.8-549.5K
Average Total Investment:	$333K

Fees:
Initial Franchise Fee:	$25K/Unit
Average Franchise Fee:	$25K
On-Going Royalty:	5%
Average Royalty:	5%
Advertising Fee:	2.82%

Average Number of Employees:

8 Full-time, 18 Part-time

Space Needs (in square footage):

1,000-1,400

Preferred Sites:

Strip Center

Other Sites:

Stand-alone; non-trad

Encourage Conversions?

Not Applicable

Earnings Claims Provided?

Listed in the SBA Registry?

Support and Training

International Franchise Association:	No
Canadian Franchise Association:	No
Franchisee Association/Member:	Yes, Not a Member
Size of Corporate Staff:	13990
Site Selection Assistance?	Yes
Lease Negotiation Assistance?	No
Financial Assistance?	No

Marketing Support:
Co-Op Advertising:	Yes
National Advertising:	Yes
Regional Advertising:	Yes
Local Advertising:	Yes
Marketing Materials:	None Specified
Additional Services:	None Specified
Other Marketing Support:	None Specified

On-Going Support:
Central Data Processing:	At Additional Cost
Central Purchasing:	At Additional Cost
Field Operation Evaluation:	Included in Fees
Field Training:	Included in Fees
Initial Store Opening:	Included in Fees
Inventory Control:	Not Applicable
Franchisee Newsletter:	Included in Fees
Regional or National Meetings:	At Additional Cost
800 Telephone Hotline:	Included in Fees

Training:
1. Mgmt. Training: Varied Location	5 Weeks
2. Mentoring; Varied Location	Varies
3. Papa John's University, Louisville, KY	1 Week

Franchisee Qualifications

Ranked from 1 (unimportant) to 5 (important):

Financial Net Worth:	5
General Business Experience:	5
Specific Industry Experience:	4
Formal Education:	3
Psychological Profile:	4
Personal Interview(s):	5

Minority Representation

Units Owned by Minorities:
African-American:	4%
Asian-American:	20%
Hispanic:	5%
Native American:	<1%
Other:	0
Specific Minority:	Development Allowances, Equipment Financing, Franchise Fee Reduction, Financing Referrals, Flexibility in Store Formats, Managerial Training, Mentoring

Terms of Contract

Term of Initial Contract:	10 Year(s)
Term of Renewal Period:	10 Year(s)
Passive Ownership:	Allowed
Area Development Agreements?	Yes, for 0 Year(s)
Sub-Franchising Contracts?	No
Franchisees Allowed to Expand Within Territory?	Yes

Expansion Plans

Projected New Units Over Next 12 months:

120

U.S.:	Yes, All United States
Canada:	Yes
Overseas:	Yes

Franchisor Background

Year Established:

Franchising Since:

Operating Units:

Geographic Distribution:

North America: