Papa John’s International, Inc. completed a refranchising and new‑restaurant development agreement with franchisee Chris Patel of Pie Investments, transferring ownership of 85 Papa John’s restaurants in the Washington, D.C. and Baltimore markets from the joint venture Colonel’s Limited, LLC to Pie Investments, a leading franchise operator that already runs more than 150 Papa John’s locations.
Under the terms of the deal, Pie Investments will assume control of the 85 restaurants and will partner with Papa John’s to open 52 additional new restaurants by 2030, expanding the brand’s presence in the Greater Philadelphia, Washington, D.C., and Baltimore markets. The transaction is part of Papa John’s broader strategy to strengthen its franchisee model and accelerate growth in key U.S. markets.
By moving these 85 restaurants to a high‑performing franchisee, Papa John’s reduces its direct operating footprint, improves four‑wall economics, and frees capital to invest in brand and marketing initiatives. The company also aims to enhance franchisee profitability through supply‑chain optimization and lower build costs, which should attract and retain strong franchise partners and create a more asset‑light business model.
Papa John’s reported mixed results in Q3 2025, with flat total revenue and a decline in North American comparable sales, and a drop in net income year‑over‑year. The refranchising move is intended to shift the company’s revenue mix toward more stable franchise fees and royalties, potentially improving margins and reducing capital intensity while supporting the company’s long‑term growth objectives.
CFO Ravi Thanawala said the partnership with Chris Patel and Pie Investments reflects Papa John’s confidence in the franchisee’s growth mindset and operational expertise. Patel expressed enthusiasm about leveraging enhanced tools to improve operations and customer experience, underscoring the strategic fit between the parties.
William Freitas, who led Colonel’s Limited, retired following the transaction. Pie Investments plans to grow to 250 Papa John’s locations by 2030, positioning the brand for accelerated expansion in key U.S. markets.
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