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Papa John's offers franchisees growth incentives

Papa John’s International Inc. in 2012 will again offer expansion incentives to new and existing franchisees in the United States.

The Louisville, Ky.-based company’s 2012 Development Incentive Program provides qualifying franchisees with:

• a waiver of the $25,000 franchise fee;
• $50,000 in equipment, including two pizza ovens, which can be purchased for $50 after operating for three years;
• a royalty waiver for 18 months; and
• a $3,000 credit with the company’s PJ Food Service supply and distribution subsidiary.

The credit with PJ Food Service applies to franchisees who get their restaurants running at least 30 days earlier than the scheduled opening date. This year’s incentives also were offered in the 2011 Development Incentive Program, although the royalty waiver lasted for only 12 months.

“Our brand is poised for continued growth in 2012,” said John Schnatter, Papa John’s founder, chairman and chief executive. “We are proud to offer this Development Incentive Program to help franchisees grow with us and deliver our ‘better ingredients, better pizza’ to an increasing number of consumers throughout the country.”

Another company investment benefiting domestic Papa John’s franchisees this year is a one-time contribution to the Papa John’s National Marketing Fund made by one of the chain’s suppliers, as part of a five-year supply deal. Papa John’s did not disclose the supplier or the size of the sum to be paid to the marketing fund in the first quarter of 2012, but the company did say it would negatively affect earnings per share by 11 cents for the full fiscal year.

Papa John’s operates or franchises 3,010 pizza restaurants in North America and another 770 units in its international system.

Contact Mark Brandau at [email protected].
Follow him on Twitter: @Mark_from_NRN

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