How Much Money Do Papa Johns Franchise Owners Really Make In A Year?

Franchising is a huge industry, especially when it comes to food. About 74% of chain restaurants across the U.S. are owned by franchisers, per a report from food service consulting company Technomic (via Bar and Restaurant News). Even a chain as large as McDonalds claims 95% of its stores are owned and operated by franchisers. As for how much money popular restaurant franchise owners make per year, that depends on the restaurant, the franchiser, the location, and other factors.

In the case of Papa Johns, the average unit volume (AUV) — which represents a given restaurant's average sales revenue — among its approximately 2,700 franchised U.S. locations is a little less than $1.16 million, per Papa Johns' franchise website. Other estimates from financial consulting platform SharpSheets, however, stated in an April 2025 report that the AUV of a Papa Johns pizza place is closer to $1.07 million.

Regardless, much of that revenue stream is whittled down by expenses like revenue sharing and fees for the Papa Johns chain itself. When all that is factored in, the average earnings before interest, taxes, depreciation and amortization (EBITDA) is about $161,000, per SharpSheets. That might not be as much money as what an average Wendy's franchise owner makes in a year, but it is slightly more than the roughly $69,000 to $126,000 Glassdoor reports many Domino's franchise owners make per year. But before a Papa Johns franchiser can make any kind of money, a substantial investment will be needed.

Founded in 1984 as Papa John's, the company now has over 6,000 locations worldwide and is known for its "Better Ingredients, Better Pizza" philosophy. The publicly traded corporation removed the apostrophe from the name in November 2021 to distance itself from its founder and former CEO, John Schnatter. If you've ever wondered what happened to Schnatter, he had a very controversial history with the company that culminated with him uttering several racially insensitive remarks on conference calls.

A year after its founding, Papa Johns started franchising its brand to entrepreneurs. As of September 2025, 91% of Papa Johns restaurants in the U.S. are owned by franchisers, per Franchise Times. But, according to the chain's restaurant, starting one takes a substantial investment of between $261,165 and $853,365. This investment includes an initial franchise fee of between $5,000 and $25,000, construction and leasehold improvements that can cost between $102,000 and $365,000, and furniture and equipment that can easily run you over $100,000. Sharpsheets reports smaller expenses like opening advertising, inventory and supplies, training, and signage can also account for upwards of $100,000 of that investment.

After that, Papa Johns franchisers continue to pay a 5% royalty fee on their net sales, plus another 8% marketing fee, per SharpSheets. In exchange, franchisers are given robust training, access to marketing and online ordering tech, and other forms of support that enable restaurant owners to keep their food high quality per Papa Johns' franchise webpage.

It takes such a substantial amount of cash to start a Papa Johns that the restaurant chain even requires the owners to have a net worth of at least $250,000 and liquid assets of more than $75,000, per SharpSheets. The significant investment and continued royalty fees are among the reasons why a franchise operation is one of the worst businesses to start. Nevertheless, more than 700,000 people operate a franchise of some sort across the U.S. So, there isn't any shortage of people trying.

Among those franchisers who persevered is Nadeem Bajwa, who started as a Papa Johns delivery man while attending college. By the time he finished school, Bajwa was managing multiple restaurants in the Fort Wayne, Indiana area. In 2002, he opened his first Papa John's franchise restaurant. As of August 2025, he owns 270. As Bajwa told CNBC, "I never dreamt of this growth. [I just focused on] doing my best ... and learning from my mistakes ... and the rest just came." So, opening a Papa Johns franchise may not be easy, but finding continued success in the industry isn't exactly a pipe dream.