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

Papa John's sales drop amid founder controversy

  Papa John's sales drop amid founder controversy Papa John's sales drop amid founder controversyLoad Error

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.

Tensions flare between Tims and franchisees

  Tensions flare between Tims and franchisees OAKVILLE, Ont. - A group of rebellious Tim Hortons franchisees says they have been trying to mend rocky relations with parent company Restaurant Brands International Inc., but the fast-food giant's executives are stonewalling them. In a letter obtained by The Canadian Press, the Great White North Franchisee Association told its members it has sent emails to Tim Hortons President Alex Macedo requesting a meeting, but has found Macedo has "no interest" In a letter obtained by The Canadian Press, the Great White North Franchisee Association told its members it has sent emails to Tim Hortons President Alex Macedo requesting a meeting, but has found Macedo has "no interest" in sitting down with them.

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)

Vancouver Housing ‘In The Dumps’ As Sales Hit 18-Year Low .
The last time Vancouver's housing market was this weak, Bill Clinton was in the White House and the Baha Men were singing "Who Let The Dogs Out." Those hoping for a quick recovery in the region's sputtering housing market had their hopes dashed by the latest data from the real estate industry. Home sales in the area fell to their lowest level since 2000, the Real Estate Board of Greater Vancouver (REBGV) reported Thursday, with all housing types registering declines.That means sales are even lower today than they were during the 2008-09 financial crisis, when Canada's housing markets were hit by a brief but sharp slowdown.

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