Papa Johns refranchised 13 of its Wisconsin restaurants in the third quarter of 2024 and is re-evaluating its mix of company-owned versus franchised operations, according to a QSR report.
The article noted that Papa Johns’ refranchising effort “would create an entry point for new and existing partners and help develop underpenetrated strategic DMAs.”
Papa Johns CEO Todd Penegor discussed the approach at the brand’s recent presentation at the ICR Conference in Orlando. “Refranchising really has to come with, how do you put restaurants in the right hands of operators that are growth-minded, thinking about investing into the future, want to reimage storefronts, want to sign new development commitments, and are really partners of the brand to continue to drive all of us forward into the future?” Penegor said.
As of the end of Q3 2024, Papa Johns had 3,454 stores in North America, including 2,917 franchised locations and 537 company-owned stores. With 63 new openings in the fourth quarter that year, it saw net growth of 60 locations in North America.
As QSR reported, Penegor said the brand is “looking actively at what’s the right level of company ownership, what’s the role of franchising, and how does that help stimulate even more growth for our system as we scale up franchisees that are growth-minded and bring some new folks into the system” for future growth.