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Technology Papa John's cuts costs for North America franchisees as sales fall

08:40  11 august  2018
08:40  11 august  2018 Source:   reuters.com

MLB 'indefinitely' suspends Papa John’s promotion

  MLB 'indefinitely' suspends Papa John’s promotion Major League Baseball has announced its Papa John’s promotion has been “indefinitely suspended,” Yahoo Sports reportedly has confirmed. The substance of the promotion involves MLB bestowing the moniker “Papa Slams” upon grand slams. Since 2016, fans have been receiving a 40 percent discount on their Papa John’s order the next day by using an online coupon code. According to Yahoo’s report, that promotion will now cease, at least temporarily. TheThe substance of the promotion involves MLB bestowing the moniker “Papa Slams” upon grand slams. Since 2016, fans have been receiving a 40 percent discount on their Papa John’s order the next day by using an online coupon code.

Papa John ’ s has agreed to provide financial assistance to its U.S. and Canadian franchisees , according to an internal memo obtained by Forbes. Amid falling sales and a declining stock price, the company will cut royalty payments and food costs , in addition to offering other measures of relief.

How much does it cost to build a Papa John ' s Franchise ? Papa John ' s requires that a minimum of 8% of net monthly sales be spent by each franchisee for marketing purposes*, which includes the national fund and co-op and/or local marketing initiatives.

a sign in front of a brick building: The Papa John's store in Westminster© REUTERS/Rick Wilking/File Photo The Papa John's store in Westminster

Papa John's International Inc (PZZA.O) on Friday said it would lower royalties and fees charged to its U.S. and Canadian franchisees as sales at the U.S. pizza chain decline following the acrimonious exit of it founder.

The company will cut royalties, food-service pricing and online fees through 2018, while also funding the rebranding of the chain.

This comes days after the company said its North American comparable sales for July had fallen 10.5 percent and would continue falling in the coming months.

Founder John Schnatter resigned as chairman of the board in July following reports that he had used a racial slur on a media training conference call.

Papa John's attempts to ward off founder with poison pill

  Papa John's attempts to ward off founder with poison pill Papa John's attempts to ward off founder with poison pillLoad Error

System-wide North America comparable sales decrease of 6.1%. costs associated with a third-party audit of the culture at Papa John ’ s commissioned by the Special Committee as well as costs associated with implementing new policies and procedures to address any findings as a result of the

Wondering how to become a Papa John ' s franchisee ? Learn about this franchise here, including costs and fees. High sales to investment ratio with 2016 average franchise unit sales of 9,794. You may be able to open a Papa John ' s for less than 0,000.*

"We appreciate the assistance being extended to our franchisees and believe the assistance program will help mitigate the impact that the founder's inexcusable words and actions have had on franchisees," Vaughn Frey, president of Papa John's Franchise Association said in a statement.

(Reporting by Karan Nagarkatti in Bengaluru; Editing by Cynthia Osterman)

Papa John's founder eyes partners in bid to buy back company .
The ousted founder of the pizza chain is reached out to a number of private equity firms in recent weeks to discuss partnering for a bid to buy the company, sources familiar with the situation tell CNBC. Schnatter, who already owns roughly 30 percent of Papa John's, is looking for capital to help support an offer, sources say. Several private equity firms have turned him down though, concerned about of the reputational risks inherent in partnering with him. Meantime, those interested in buying Papa John's do not believe that working with Schnatter is the best path towards a winning offer, some of the sources say.

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