Dave Galvin, franchise sales manager for Papa John’s Pizza UK, outlines the franchise opportunity for buyers wanting a pizza franchise:
"Papa John's are looking to find new business partners primarily to help the brand expand. The target for 2012 is to get to 200 UK stores. When we reach this target we can obtain national radio advertising which helps creates better brand awareness."
Galvin on the benefits...
"Papa John's has availability in the UK and room for people to expand, we already receive enquiries from people looking to run more than one store.The Franchisor has 177 stores with 80 franchisees – so the franchise-to-owner ratio is about 2:1.
"We can now look to expand in particular regions and develop five to six stores there. We openly encourage and incentivise people to do that.
New stores that opened in the last six to 12 months are opening at higher sales turnover levels than previously
"The benefits we have over our competitors include that all of our product is fresh.
"We only use 100% fresh dough, and mozzarella, and tomatoes that come from Californian groves and go from the tree to the can in six hours, so it’s a nicer product."
On investment requirements...
"The initial investment is between £175,000 and £220,000 for a full turn-key operation – we give you keys to a fully functioning store. Banks seem to be lending around 75% of the fund so you’ll need to have about £70,000 in liquid capital.
"Our franchise fee is £18,500 plus VAT, but all the food product comes from Papa John’s. The ongoing charges include a 5% charge royalty based on net weekly sales and 4% marketing charge which the stores make back on adverts, national advertising and leaflets."
On growth plans...
"New stores that opened in the last six to 12 months are opening at higher sales turnover levels than previously, forcing a divide between the sales that aren’t doing as well and those doing really well.
"We’re finding that the existing franchisees are changing the way they are doing their business, taking their lead from the new franchisees. Our average weekly sales are growing which keeps my boss happy!"
On what they're looking for in franchisees...
"Most importantly, enthusiasm. It’s a full-time job, 12 hours a day and potentially seven days a week, so you have got to be passionate about pizza. You’re going to be the first person in and the last one to leave, then go home to sleep and get up to do the same thing again."
"You need enthusiasm, if not, you could be the best pizza slapper or best businessman in the world, but if you haven’t got the passion to make the business work go and talk to somebody else!"