Under the agreement, Papa Johns will invest an additional $80 million in the long-term strength of its brand and domestic franchisees, beginning in the third quarter of fiscal 2019.
Papa John’s International, Inc. (NASDAQ: PZZA) today announced increased investment in marketing and brand initiatives as well as an agreement to provide scheduled financial assistance for domestic franchisees ending in 2020. This program has the support of the Company’s elected Franchise Advisory Council (FAC). This announcement enhances the partnership between the Company and franchisees by delivering needed investment in the brand and providing franchisees with certainty on the schedule of remaining royalty relief, as outlined in the agreement.
“The strength of our brand and of our franchisees are both critical to Papa John’s long-term success. We’re pleased to announce that Papa John’s will make a significant investment in the exciting future of our brand,” said Steve Ritchie, President and CEO of Papa John’s. “This is an important shared moment for Papa John’s and our committed franchisee base.”
Under the agreement, Papa John’s will invest an additional $80 million in the long-term strength of its brand and domestic franchisees, beginning in the third quarter of fiscal 2019. The Company will make significant, additional contributions to the National Marketing Fund to amplify the brand’s differentiated position and activate its new ambassador, Shaquille O’Neal. Papa John’s will also extend financial assistance to its traditional domestic franchisees in the form of lower royalties, royalty-based service incentives, and targeted relief. The Company’s announcement of a multi-quarter support package helps franchisees plan and manage their businesses into the future.
Bill Green, Chairman of Papa John’s FAC, said, “We appreciate the Company’s continued investment in the Papa John’s brand, marketing initiatives, and overall franchisee support. We look forward to enjoying the continued benefits of our long-term, successful partnership and to winning together.”