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Below is an in-depth analysis and side-by-side comparison of Papa John's vs Ronzio Pizza 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 | $134,000 - $183,000 |
Franchise Fee | $25,000 | $15,000 |
Royalty Fee | 5% | 4% |
Advertising Fee | 8% | - |
Year Founded | 1985 | 1986 |
Year Franchised | 1986 | 1992 |
Term Of Agreement | 10 years | 10 years |
Term Of Agreement | 10 years | 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 | No/No |
Start-up Costs | No/No | No/No |
Equipment | No/No | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | 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. | - |
Support | - | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | - | Co-op advertising, Ad slicks, Regional advertising |
Operations | - |
20% of all franchisees own more than one unit Number of employees needed to run franchised unit: 12 - 15
Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | Yes | No |
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.
Pizza has widespread appeal and it is popular in all regions of the USA and in many foreign countries. It is a food without peer in its flexibility and its adaptability. Practically any taste can be satisfied with pizza from the traditional to the exotic can be accommodated with a simple variation. Pizza is an economical meal or snack and because it contains the four basic food groups, pizza is nutritious and good for you. Ron Paul, president of the Chicago based consulting firm Technomics sees the pizza category growing. The growth of local and regional companies is so significant that these newcomers may actually keep the big players from growing in some markets. The rapid growth of the home delivery food business has been accelerated by changes in sociological trends in America: the dramatic increase in the number of two income households and the continued increase in convenience being sought by consumers. According to restaurant industry analysts, the potentially lucrative at home market is where the greatest future potential lies. The growing popularity of home entertainment, coupled with the demand for convenience, spells opportunity for take-out and home delivered foods. Despite the intensification of competition from all quarters, most pizza operators express great optimism, and not without reason. Pizza continues to be enormously popular with a key demographic group: Baby Boomers and their kids. As a result of this trend, industry analysts cannot see this category slowing down much at all in the near future. Pizza offers good value, and delivers well, two key ingredients for success, given today's economics and lifestyle trends. All of the products sold in Ronzio Pizza Shops are prepared fresh in the shop each day. The pizza dough is made fresh in each shop several times each day and the pizzas are formed by hand. The products are prepared on the premises where the customers can see them being made and where possible the ingredients are displayed openly. The combination of the quality control advantages of on-site production in small batches and the use of the finest all natural ingredients produces a very high quality pizza. The sauce is made from a special recipe developed after comprehensive research and the cheese is a custom blend of 100% pure cheeses. The toppings are top quality and generously apportioned.