Papa Johns franchisee files for Chapter 11

Papa ZHS LLC, a Pennsylvania-based Papa John's franchisee owned by Yasir Hussain, has filed for Chapter 11 bankruptcy protection along with four affiliated businesses, seeking to reorganize amid mounting financial obligations and challenging conditions in the pizza industry, according to an article in The Street.

The company filed its bankruptcy petition Nov. 9, listing between $100,000 and $500,000 in assets and between $1 million and $10 million in liabilities, including more than $2.9 million in unsecured creditor claims.

Hussain's filing marks a difficult turn for a franchisee whose growth had been recognized by Papa John's. He opened his first franchise in 2019 after beginning his career with the pizza chain as a dishwasher roughly 20 years ago.

Over the following years, he expanded his portfolio to 12 restaurants and was preparing to open a 13th in Cleveland, Ohio. In February 2025, Hussain also was credited with opening Papa John's 6,000th restaurant.

The bankruptcy comes as Papa John's franchisees face mounting pressure from declining sales, increased competition and a challenging consumer environment. For the third quarter ended Sept. 27, North American comparable sales declined 8.3%, including an 8.5% drop at franchised restaurants and a 7.5% decline at company-owned locations. Global systemwide restaurant sales fell 5.6% to $1.15 billion, while revenue decreased 10.5% to $454.8 million.

The company's challenges have prompted a broader turnaround effort. On Nov. 5, Papa John's lowered its full-year 2026 financial outlook and introduced Unbox Better, a transformation strategy designed to rebuild customer loyalty, improve restaurant execution and strengthen franchisee economics.