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Papa John’s franchise financing options

Compare costs, fees and where to get financing for a Papa John's.

Overall costs for Papa John's run anywhere from $11,500 to $788,420. See how the costs break down and what funding options might be right for your new venture into the franchise foray.

Estimated initial costs

Our cost estimates are accurate as of 2021 from Franchise Direct and include opening fees and expenses only. The location you choose for your Papa John's franchise may result in higher or lower fees.

Franchise fees

Papa John's franchise fees total around $12,500, which beats out the $37,000 average for the 200 largest franchises nationwide.
Franchise Cost
Initial franchise fee $0 to $25,000
Royalty 5% of net sales of the restaurant for each period; 6% for small town non-traditional restaurants.
Estimated total $0 to $25,000

Equipment fees

Equipment fees total $86,500 for Papa John's. This is less than the $180,023 average for the top 200 franchises.
Equipment Cost
Furniture, fixtures and equipment $0 to $120,000
Information system $0 to $30,000
On-site installation and support fee $2,000 for a standard 2-day installation, $1,000 per day for each additional day. The franchisor may increase this fee.
Signage $3,000 to $20,000
Estimated total $3,000 to $170,000

Real estate fees

Real estate will set you back $258,750 for Papa John's, thought it's less than the average of $788,376 for the top 200 franchises.
Real estate Cost
Real estate brokerage fees $0 to $10,000
Construction and leasehold improvements $0 to $500,000
On-site support fee $0 to $2,500
First month's rent $0 to $5,000
Estimated total $0 to $517,500

Training fees

Papa John's initial training costs total $8,500, which comes in under the nationwide average of $9,788.
Training Cost
Training expenses $2,000 to $15,000
Training fees $100 per year per restaurant.
Estimated total $2,000 to $15,000

Inventory costs

Initial inventory for Papa John's shakes out to $6,000. This is less than the nationwide average of $53,119.
Inventory Cost
Opening inventory and supplies $2,000 to $10,000
Estimated total $2,000 to $10,000

Marketing costs

Advertisement and marketing costs total up to $5,000 for Papa John's, beating out the nationwide average of $9,938.
Marketing Cost
Grand opening advertising $0 to $10,000
Local advertising Minimum: 8% of net sales, less amounts contributed to the marketing fund and cooperative; Minimum 2% of net sales for small town non-traditional restaurants.
Estimated total $0 to $10,000

Insurance costs

Initial insurance costs for Papa John's run $4,750. This means you'll be paying less than the overall nationwide average of $6,311.
Insurance Cost
Security deposit, other deposits and insurance premium $1,000 to $8,500
Estimated total $1,000 to $8,500

Administrative fees

Papa John's administrative fees total up to $210 — which comes in under the overall nationwide average of $6,761.
Admin Cost
Help desk service fee Flat fee of $70 per month or per call fee of $80 per hour with a 1/2 hour minimum. The franchisor may increase this fee.
Software enhancement fee $0 to $420
Estimated total $0 to $420

Other expenses

Miscellaneous expenses for Papa John's total $17,750 — less than the nationwide average of $69,970.
Other Cost
Professional fees $1,000 to $12,000
Miscellaneous opening costs $2,500 to $20,000
Estimated total $3,500 to $32,000
All costs were found using the 200 largest franchises nationwide using Franchise Direct's list of more than 300 franchises, and are accurate as of 2021.

How to finance

Since the estimated total for Papa John's is on the more costly side, we recommend following these steps to get fully financed:
  1. Go to the Papa John's franchising website and review its financial requirements, including cash-on-hand requirements.
  2. Reach out to Papa John's about in-house financing for franchisees.
  3. If in-house financing isn't available, look for online loans, bank loans and SBA loans to help meet the $399,960 estimated opening costs.
  4. Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
  5. Once you settle on a lender, gather all required documents, including account statements and assets.
  6. Apply for financing online or in person as required by the lender.

What types of financing is available?

You have several options when it comes to financing a Papa John's — even if the cost is on the heavier side. What assets you have available will largely determine how much you need to borrow, and which option suits you best.
  • Online loan. A number of online business lenders offer amounts up to $1 million, with some extending up to $5 million.
  • Bank loan. Your personal credit will typically need to at least be good — 670 or higher — when it comes to getting a bank loan large enough to cover a significant portion of Papa John's opening costs.
  • SBA loan. While your personal credit score doesn't need to be as good to qualify for an SBA loan, they usually cost more than standard term loans from banks or online lenders.
Also check if Papa John's franchise financing is available. You may be able to get some of the costs covered for less than you would with other traditional funding options.

Compare small business lenders

You may not need financing to cover the estimated $11,500. But if you need funds for other business ventures, select the loan amount, your time in business and revenue and your personal credit score to compare a selection of lenders.
Name Product Filter Values Min. Amount Max. Amount Requirements
Biz2Credit business loans
$25,000
$6,000,000
6+ months in business; $100,000+ monthly revenue; 500+ credit score
Get only the capital you need through secure, prescreened lenders with this highly rated company offering SBA, expansion, working capital and other loans.
OnDeck short-term loans
$5,000
$250,000
600+ personal credit score, 1 year in business, $100,000+ annual revenue, active business checking account
A leading online business lender offering flexible financing at competitive fixed rates.
Fora Financial business loans
$5,000
$500,000
6+ months in business, $12,000+ monthly revenue, no open bankruptcies
Get qualified for funding in minutes for up to $500,000 without affecting your credit score. Best for companies with at least six figures in annual revenue.
Lendio business loans
$500
$5,000,000
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
ROK Financial business loans
$10,000
$5,000,000
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.
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How Papa John's stacks up

Compare how Papa John's holds up against two similarly sized franchises.
General Nutrition Corporation Papa John's Ace Hardware
Average Franchise fees $27,500 $12,500 $5,000
Average Equipment fees $32,800 $86,500 $92,500
Average Real estate fees $89,401 $258,750 $112,500
Average Training fees $2,250 $8,500 $18,865
Average Inventory fees $85,000 $6,000 $301,250
Average Marketing fees NA $5,000 NA
Average Licenses and permits fees NA NA NA
Average Insurance fees $4,015 $4,750 $15,000
Average Admin fees NA $210 $9,000
Average Personnel fees NA NA NA
Average Other fees $23,500 $17,750 $87,500

Bottom line

Papa John's franchise costs run a total of $399,960. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing read our guide to franchise financing.

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