Eight California Papa John's units close abruptly

Sept. 23, 2013

Eight Sacramento, Calif., area Papa John's units closed abruptly last week, surprising employees and corporate.

According to News 10, a note was found on the door of one of the locations, blaming "circumstances beyond our control" for the closings. Employees have reported that their paychecks were refused by banks.

The locations are operated by franchisee APNA Investments.

Papa John's released a statement Saturday on its Facebook page about the closings. The company vowed to reach out to team members affected to offer guidance and possible assistance through a Franchise Team Member Relief Fund.

"Papa John's was surprised to learn yesterday that APNA Investments, a Sacramento-area franchisee, had made the sudden decision to close their restaurants. We are also disappointed that the franchisee cannot pay its employees their final paychecks; we encourage those affected to contact the franchise owner to determine their options," the post read.

Three Sacramento-area locations remain open. APNA Investments plans to file for bankruptcy.

A Papa John's spokesperson told News 10 that the eight stores had been struggling, but that "corporate officials were blindsided" about the closings.

Read more franchising news.

Topics: Franchising & Growth, Operations Management, Papa John's, Staffing & Training

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