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Updated RecentlyPapa John's vs Old Chicago Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Papa John's vs Old Chicago including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $26,500 - $844,420 | $1,331,500 - $2,187,000 |
| Franchise Fee | $25,000 | $40,000 |
| Royalty Fee | 5% | 4% |
| Advertising Fee | 8% | 3% |
| Year Founded | 1985 | 1976 |
| Year Franchised | 1986 | 2000 |
| Term Of Agreement | 10 years | - |
| Term Of Agreement | 10 years | - |
| Renewal Fee | - | - |
Business Experience Requirements |
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| Experience | The prospective franchisee should have at least one partner with a successful business management background and one partner who qualifies as the Principal Operator. For single-unit development, an individual can apply to be both owner and Principal Operator. The Principal Operator must have prior general management experience relative to the number of units to be developed and must own or have the right to acquire at least 5% equity in the business within 12 months of hire date. A fully completed Request for Consideration Form and current resume must be submitted for each member of the proposed franchise group or the owner operator, including the proposed Principal Operator. Also, Papa John's will request supporting documentation from each proposed owner | - |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/No | -/- |
| Start-up Costs | No/No | -/- |
| Equipment | No/No | -/- |
| Inventory | No/No | -/- |
| Receivables | No/No | -/- |
| Payroll | No/No | -/- |
Training & Support |
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| Training | We provide initial training for the operator of 6-8 weeks. In addition, we continue to provide ongoing training for your operator and team. | The Old Chicago training department will provide Franchisees, their management team, and staff, comprehensive training programs that combine both restaurant and classroom training. All Franchise management teams will receive seven weeks of in-store training at a designated Old Chicago training restaurant. On-The-Job Training: 350 hours |
| Support | - | A set of comprehensive manuals are provided to an Old Chicago Franchisee upon the signing of the Operating Agreement. These manuals are designed for easy reference and serve as an authoritative source of information about Old Chicago standard operating policies and procedures. These manuals are frequently updated to reflect Old Chicago's response to the changing needs of today's guests. Purchasing Co-ops Meetings/Conventions Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software |
| Marketing | - | Old Chicago restaurants rely primarily on a Local Restaurant Marketing (LRM) program that allows each store to choose the marketing programs and promotions that match the needs of the individual store's market. Advertising and promotional materials are available at a reasonable cost to Franchisees that support a LRM program. As such we employ our own graphics designer to assist Franchise Partners with their LRM design needs. We also employ a marketing professional to consult with our Franchise Partners. Co-op Advertising Ad Templates National Media Regional Advertising Email marketing Loyalty program/app |
| Operations | - | - |
Expansion Plans |
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| US Expansion | Yes | Yes |
| Canada Expansion | No | - |
| International Expansion | Yes | - |
Company Overviews
About Papa John's
We didn’t start our business in a boardroom. We started it in a broom
closet. Back in 1984, our Founder, John Schnatter (that’s Papa John to
you) sold his beloved muscle car to buy pizza‐making equipment. Armed
with only an oven and a love for making quality pizza, John opened the
very first Papa John’s in the crowded broom closet of his father’s
tavern.
Over the years, this passion for making better pizza
informed every decision and pizza we made...because the last thing we
wanted to be was a pizza company. So instead of chopping vegetables with
machines, we chop them by hand every day. Instead of investing in
gimmicks, we invest in fresh ingredients. And we pile them high on our
fresh, never-frozen original dough.
Today, we’ve surrounded ourselves with like-minded people
with a passion for making better pizza, including franchisees,
suppliers, athletes, pizza makers, and farmers we’ve known for over 30
years. Like our friend Dino in California - "he grows the best tomatoes.
In the end, John’s desire to create a better pizza built more than a pizza company...he built a pizza family.
At Papa John's we have a simple formula for success: Focus on one thing and try to do it better than anyone else. By keeping the Papa John's menu simple, we are able to focus on the quality of our product by using only superior-quality ingredients. Our commitment to quality can be seen in all of our ingredients, from our fresh (never frozen) water-purified traditional dough, to our vine-ripened fresh-packed tomato sauce (which goes from the vine to the can in an average of six hours), to our cheese made with 100% mozzarella and many other premium ingredients.
The total investment necessary to begin operation of a standard Papa
John’s franchise is $130,120 to $844,420. This includes up to $73,920
that must be paid to the franchisor or its affiliate.
The total investment necessary to begin operation of a non-traditional Papa John’s
franchise is $26,500 to $388,920. This includes up to $56,420 that must
be paid to the franchisor or its affiliate.
Seeking new franchise units Worldwide.
Better Ingredients, Better Pizza.
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#64 in Canada's Top franchises.
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#55 on Franchise Rankings.com
#146 in Franchise 500 for 2020.
#127 in Franchise 500 for 2021.
About Old Chicago
Opportunity Awaits
After 33 years of company growth, we are now offering a unique opportunity for a select number of entrepreneurs to take our proven brand into new markets.
Old Chicago is a leader in the casual dining pizza segment. We currently have territories available in many highly desirable markets, which presents an exceptional chance to establish our winning concept in choice locations.
WHY CHOOSE OLD CHICAGO?
Adaptable Site Requirements
Old Chicago's brand identity does not rely on a typical "box" to succeed. Our adaptive development strategy and flexible design allow stores to be constructed in many different types of sites, including prototype buildings, conversions/retro-fits, strip center end-cap locations, and non-traditional sites.
Sales Mix Advantage
With approximately 40% of historical system sales from our bar and drink business, Old Chicago's sales mix provides operators with a real opportunity to differentiate themselves from other casual dining concepts. Our high mix of bar sales is one of the main reasons why our stores experience exceptionally low Cost of Goods Sold (COGS). Our 60 company stores finished the year in 2008 with an average COGS of 25.6%.
Brand Strength & Versatility
Our brand has three decades of proven success and a loyal customer base in our existing markets. Old Chicago is a timeless concept that has that rare ability to appeal to a variety of consumers. Many casual dining concepts seem to copy each other in their menus and restaurant "feel". The Old Chicago concept is uniquely different.
Our bars have the rich, dark feel of a "freshly scrubbed joint". Our dining room areas with our new pizza bars really appeal to families and couples.
Broad Customer Appeal
Our bar area, along with our unique guest loyalty program -"The World Beer Tour" appeal to a younger, single customers. They create the high energy levels that have made our bars famous. With thirty beer varieties on tap, and another eighty varieties in bottles, we have created an exciting taste journey for our World Beer Tour members. No matter your age or occupation, there is a tremendous sense of accomplishment when your name goes on a plaque in your home store because you have completed the World Beer Tour.
The total investment necessary to begin operation of an Old Chicago
Restaurant franchised business is between $1,331,500 and $1,957,000.
This includes $98,250 and $135,250 that must be paid to the franchisor
or its affiliates.
The total investment necessary for an Area
Development Franchise includes the investment necessary to begin
operations of one Restaurant, plus a development fee of $50,000, plus an
initial franchise fee deposit of $20,000 multiplied by the number of
Restaurants (excluding the first Restaurant) which you must open.
The estimated total investment necessary to begin operation of an Old Chicago
Area Development Franchise is between $1,401,500 (for two
Restaurants) and $2,187,000 (for ten Restaurants). This includes between
$168,250 and $365,250 that must be paid to the franchisor or its
affiliates.
#299 in Franchise 500 for 2020.