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Below is an in-depth analysis and side-by-side comparison of Papa John's vs Mellow Mushroom 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 | $1,624,000 |
Franchise Fee | $25,000 | $50,000 |
Royalty Fee | 5% | - |
Advertising Fee | 8% | 2% |
Year Founded | 1985 | - |
Year Franchised | 1986 | - |
Term Of Agreement | 10 years | 15 years +5 |
Term Of Agreement | 10 years | 15 years +5 |
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/- |
Start-up Costs | No/No | No/- |
Equipment | No/No | No/- |
Inventory | No/No | No/- |
Receivables | No/No | No/- |
Payroll | 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. | Your ownership group and senior management staff will train for three weeks at our Shroom University training facility in Douglasville, Georgia prior to opening. When your store opens our training staff will assist you for a week prior to opening, and for two weeks after the opening. Shroom University offers a comprehensive program designed to teach you about the Front of House, Back of House, and Administrative aspects of running a Mellow Mushroom. You and your managers will learn how to make food, place orders, hire and retain personnel & maintain your POS system and mine the data it collects. A special emphasis is given to teaching you proven methods of supervising your store to decrease food and labor costs and increase cash flow. Quality control systems are also shared with you at Shroom University, and you will be provided with several financial and cost management spreadsheets. |
Support | - | Members of our operations team will visit your store(s) to ensure that our standards and practices are being upheld. These visits are also opportunities for us to continue to train your staff and help train any new employees. Our operations team will also help you implement new initiatives that are developed in conjunction with the marketing department. Our marketing team will advise you on coordinating local promotions and create collection-wide campaigns in which your store can participate. The marketing team will also provide you with designs for business cards, banners, stickers, magnets, and spec ads for use in your local market. |
Marketing | - | - |
Operations | - | - |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | - |
International Expansion | Yes | - |
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.