Papa's Pizza To-Go vs McDonald's Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Papa's Pizza To-Go vs McDonald's including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees

 
Papa's Pizza To-Go Franchise
McDonald's Franchise
Investment $138,950 - $386,800$1,314,500 - $2,306,500
Franchise Fee $9,500$45,000
Royalty Fee 5%4%
Advertising Fee -4%+
Year Founded 19871955
Year Franchised 19901955
Term Of Agreement 10 years20 years
Term Of Agreement 10 years20 years
Renewal Fee 20% of franchise fee$45K


Business Experience Requirements

 
Papa's Pizza To-Go Franchise
McDonald's Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills

  • Industry experience
  • General business experience
  • Marketing skills

  • Financing Options

     
    Papa's Pizza To-Go Franchise
    McDonald's Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/No
    Start-up Costs No/YesNo/No
    Equipment No/YesNo/Yes
    Inventory No/YesNo/No
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support

     
    Papa's Pizza To-Go Franchise
    McDonald's Franchise
    Training - On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant
    Support Newsletter, Meetings, Grand opening, Security/safety procedures, Field operations/evaluationsPurchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software
    Marketing Co-op advertising, Ad slicks, Regional advertisingCo-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app
    Operations 15% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 15

    Absentee ownership of franchise is allowed. (77% of current franchisees are owner/operators)

    82% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)


    Expansion Plans

     
    Papa's Pizza To-Go Franchise
    McDonald's Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion NoYes

    Company Overviews

    About Papa's Pizza To-Go

    Papa's Pizza To-Go opened for business in 1986 with the unveiling of four pizzerias in Georgia. Since its founding, Papa's Pizza To-Go has brought its pizzas, salads, submarine sandwiches, pastas and wings to small towns across the United States.

    Papas Pizza To Go is currently accepting inquiries from the following states:Tennessee, South Carolina, North Carolina, Mississippi, Georgia, Alabama

    About McDonald's

    Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955.
    McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local business people. Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.


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