Earlier today, I enjoyed a fresh pizza from Papa John’s. I am a big fan of Papa John’s pizza, and I am becoming a bigger fan of the brand and the business. “Papa” John Schnatter is building a very nice empire made of dough. In fact, his dough is making a lot of dough. We must all learn and apply the concept of franchising in our lives. This concept is the key to wealth and riches (financially, spiritually, mentally, and physically). Success doesn’t happen solo; it happens with a team.
Let’s take a closer look at the business:
- 1983 – John finishes college at Ball State University and returns home to his father’s tavern. He sells pizza out of the back of the restaurant
- 1984 – He opens up the first Papa John’s restaurant in Jeffersonville, IN.
- 1986 – Papa John’s starts franchising
- 1993 – Goes public (PZZA on Nasdaq)
- 1996 – 1,000th store opens up
- 1998 – Goes international
- 1999 – 2,000th store opens up
- 2012 – 3,800 stores open
Total Revenue in 2011: $1.217 billion
Approximate Revenue per store: $320,495
Franchise Royalty: 6%
Franchise Fee – $25,000
Papa John’s net worth and capital requirements for new franchisees are as follows:
- Minimum of $50,000 in cash or liquid assets;
- Minimum net worth of $150,000; and
- Ability to obtain financing up to $200,000.
I know those requirements knock most average Joe’s and Jill’s out of the running. But don’t be defeated; you can play the business game like the big boys play for WAY less required on the front end. We can show you how.