Any Papa Johns Franchise owners here, or know anybody????

[fbodlovr]

This is going to be quick and to the point. But Im wanting to know if any of you own a papa johns franchise, or know somebody that does, and exactly what the average income is for a franchise owner. I have been contemplating doing this for a while, and since im unemployed now, its not a terrible time to do it if im going to. Let me know.

Thanks guys

 

[gman7.0]

No clue on "facts" but I would think placement is key.
Iv know a couple places that should have on, PaPa Johns is my favorite.

 

[rtviper]

This is going to be quick and to the point. But Im wanting to know if any of you own a papa johns franchise, or know somebody that does, and exactly what the average income is for a franchise owner. I have been contemplating doing this for a while, and since im unemployed now, its not a terrible time to do it if im going to. Let me know.

Thanks guys

You should get out to all the stores you can, to talk with others in the business.

Just remember when times get tough those type of franchises will run low ball specials that give you great volume and the Parent Co. will make good money off of your set % they collect off of sales. What's left is usually very little cause of the low price you sold at. Out here in the Nth West those tactics killed Little Ceaser Pizza.

Your sales can jump 50% and your profits will be so low you cant afford expenses.

 

[Turbo Indian]

not to interrupt your thread but I have thought about a DQ in our area. there is not a whole hell of a lot of equipment in one of there stores, 1 freezer 2 soft serve machines & 1 blizzard machine.

 

[Pronto]

not to interrupt your thread but I have thought about a DQ in our area. there is not a whole hell of a lot of equipment in one of there stores, 1 freezer 2 soft serve machines & 1 blizzard machine.

There's a DQ down the street from me. No matter what the weather there is always at least one car there. I've seen people getting ice creams in 20* weather in the snow. People want their softserve. It's a moneymaker for sure.

 

[rtviper]

not to interrupt your thread but I have thought about a DQ in our area. there is not a whole hell of a lot of equipment in one of there stores, 1 freezer 2 soft serve machines & 1 blizzard machine.

DQ's are even worst then a Pizza joint. I had a DQ for about two years and what a nightmare. You have the same issues as a franchisee that the Pizza places do plus the equipment, the problems with the equipment, depending on where you operate the store the climate, the employees for the most part are teens and they will ruin your life.

You can never get the store clean with all the dairy products and grease from the fried foods. You don't have the sales like McDonalds to employee enough employees to staff the store correctly.

After 2 years I got them all together and said, if your the next generation then we are in deep trouble.

 

[fbodlovr]

I see what all of you are saying. I really wish I got some type of generalized answer on this. I dont want to go through the application process and get everything together along with investors, and loans secured, and the get the FDD and not like what I see. I really wish someone could chime in here. I have a feeling that the other stores are going to be reluctant to answer that question for me.

As to the low ball deals, and not making much because of that. Do the franchisors do that a lot without compensating you....like a couple bucks to make up for what you should have realistically made?

 

[fbodlovr]

I looked around on the net trying to find this answer, and I only came across one thing on it. A person asked what a papa johns franchise owner makes, and there was an answer of probably about 25% of net sales each week. So if the store makes 20000 that week, the owner would get about 5k+/-. Do you guys agree?

 

[Underboost]

Ralph Vasquez in the South West section owns a Round Table Pizza franchise in Dana Point, CA.

Maybe he can help you??

 

[rtviper]

I see what all of you are saying. I really wish I got some type of generalized answer on this. I dont want to go through the application process and get everything together along with investors, and loans secured, and the get the FDD and not like what I see. I really wish someone could chime in here. I have a feeling that the other stores are going to be reluctant to answer that question for me.

As to the low ball deals, and not making much because of that. Do the franchisors do that a lot without compensating you....like a couple bucks to make up for what you should have realistically made?

Hell no they just take their cut and what's left is yours. Why would they care you paid your Fee and if you go belly up they will sell another franchise to someone else for your location.

The other stores will share with you why wouldn't they? Just sit down and do the math.
A building lease, 5k a month?
Employees 5 or 6 at $80.00 a day, 500 a day?
Manager unless you'll be there 7 days a week and at first you will but that gets old fast. 3k a month?
Utilities $2000.00 month
Equipment lease $1200.00 month?
State Industrial Taxes
B&O taxes
Transit taxes , etc etc
Several other costs will be incurred so figure $1200.00 month

You'll have close to $30k a month in expenses and you might have a GP % of 50% with all the specials.
You will have to do $60k in sales just to make expenses then you get paid.
That's a lot of pizzas at under $10.00 each. Like about 6k pizzas sold, a month?

 

[rtviper]

I looked around on the net trying to find this answer, and I only came across one thing on it. A person asked what a papa johns franchise owner makes, and there was an answer of probably about 25% of net sales each week. So if the store makes 20000 that week, the owner would get about 5k+/-. Do you guys agree?

No that's extremely high. You also need to find out what the average sale is. I will bet its about $10.00. The Pizzas I have bought were under $10.00 for a large and with sales about $6.00.

If I did the numbers correct 3000 stores did 1 billion in sales. That averages out to about $333,000 a year per store? Not a lot?

To have a $20000. a week that's $80k a month or about 8000 pizzas? I seriously doubt many do that kind of volume?

There is a dollar amount in sales where you can make money, expenses and operating costs stay the same, do $80k in sales and 50% GP you could make $10K a month but look at what typical sales are.

It's going to cost you over $250k to open. Papa takes 5% and requires 7% be spent on advertising. Debt servicing is higher then I thought so now you need to add yearly taxes for the building you need to build. That can be a total of $6k a month plus 7% and 5% is $7200. a month. You need to add that to the $30k operating costs I mentioned earlier.

 

[The Blob]

For what it's worth...

This is going to be quick and to the point. But Im wanting to know if any of you own a papa johns franchise, or know somebody that does, and exactly what the average income is for a franchise owner. I have been contemplating doing this for a while, and since im unemployed now, its not a terrible time to do it if im going to. Let me know.

Thanks guys

Not Papa John's, but my best friend lost his ass on three Quizno's franchises. He is a smart guy, works hard, and has an MBA... yet still went down in flames. The biggest thing, which I told him up front would probably be the case, is finding employees who are worth a sh*t. At the wages you can afford to pay, that is very difficult. Then your life becomes hell.

The lesson learned from him... and rtviper is saying it as well... is that the fast food franchise business is brutal. People can and do make money, I guess, but it looks to be really hard work and you have to know what you are doing.

 

[rafael vasquez]

Hi I have a Pizza franchise,,
1.check in your are to see how many pizza places there is?
2. how many residents in your deliver are? need 80k to sell 50k a month
3. it takes 500k to open a new pizza franchise of about 2000 sq feet in this arae
4. at the end of it all take home 20% with working owner 6 days a week
been doing it for 9.5 years

go to southwestern area and type in pizza cruzz-cruise you will see many pictures we have took over the past 3 years

hope this helps you, sorry tooooooo tyerd to type working of course sales today 1047 need to sell 1200 to break even today.........

 

[FASTGREEK]

rather than going into a franchaise, why don't you just open up a pizza shop under your own name(make sure you offer delivery), find a location with rent around $2500-$3000 month, for under 100k you can buy new equipment, booths, ect. You might be able to do it for under $50k.Just my 2 cents.My family owns a restaurant , Chris's Family Restaurant - Home

 

[rtviper]

Hi I have a Pizza franchise,,
1.check in your are to see how many pizza places there is?
2. how many residents in your deliver are? need 80k to sell 50k a month
3. it takes 500k to open a new pizza franchise of about 2000 sq feet in this arae
4. at the end of it all take home 20% with working owner 6 days a week
been doing it for 9.5 years

go to southwestern area and type in pizza cruzz-cruise you will see many pictures we have took over the past 3 years

hope this helps you, sorry tooooooo tyerd to type working of course sales today 1047 need to sell 1200 to break even today.........

The work you have to do is hard to describe. Plus you sell pizza at a price you might make some money off of.

We prefer Roundtable and the one we go to never has pizza at 5.95 for a large. We pay 18.95 and up for a large here in the Nth West.
Can you imagine how much you would make/ lose if you sold your product for 5.95 to 7.95? That's what Papa John sells at out West here.

 

[rtviper]

rather than going into a franchaise, why don't you just open up a pizza shop under your own name(make sure you offer delivery), find a location with rent around $2500-$3000 month, for under 100k you can buy new equipment, booths, ect. You might be able to do it for under $50k.Just my 2 cents.My family owns a restaurant , Chris's Family Restaurant - Home

That's good advice, no one telling you to give away your product so they maximize their monthly fee based on total sales.

I also had 7-11 stores for many years and although they were money makers you could open an independent in the right spot and make twice as much.

 

[Phoff]

I worked for them for a year. It is hard to make money and employee turnover is more than 100%. I wouldnt do it.

Pete

 

[88 CuttyClassic]

many DQ's in the pittsburgh area are ice cream only and close in the winter. the one next to my dads shop is run by the owner, her son and usually a rotation of 3-4 teens.. I think she does pretty well.

 

[Turbo Indian]

many DQ's in the pittsburgh area are ice cream only and close in the winter. the one next to my dads shop is run by the owner, her son and usually a rotation of 3-4 teens.. I think she does pretty well.

we have one about 10 miles from us, & it is ice cream only & it stay busy year round.

 

[rtviper]

we have one about 10 miles from us, & it is ice cream only & it stay busy year round.

There are a few high volume stores that can make some money but most do not. Many have closed the last 20 years.

If your only open several months of the year I can guarantee you don't make much money. The rent on the building doesn't stop when your closed.