Franchising

Papa John’s International refranchises stake in joint venture

Photo by istock.com

April 4, 2022

Papa John's International Inc. has refranchised its majority stake in a joint venture with Blue and Silver Ventures, Ltd.

Sun Holdings, a multi-brand franchisee operator, has assumed control of 90 brand locations in Texas, according to a press release. Blue and Silver Ventures remains a limited partner in the venture and its share of ownership remains unchanged. Financial terms of the transaction were not disclosed.

The refranchising deal builds upon the development agreement signed in September 2021, under which Sun Holdings will open 100 restaurants across high-growth markets, including in Texas, by 2029, in addition to the restaurants it has acquired.

"Sun Holdings is a proven, well-capitalized operator who understands our ambitious goals to expand the footprint of our brand," Amanda Clark, Papa Johns chief development officer, said in the release. "We will continue to build new corporate restaurants as well as refranchise when we can provide our franchisees strategic scale to support the brand's long-term growth, with this deal as a great example."

"We are excited to partner on an even larger scale with Papa Johns, an innovative brand that is well-positioned in the QSR industry and has already begun to deliver a high return on our investment," Guillermo Perales, president and CEO of Sun Holdings, said in the release. "We look forward to growing together and are thankful to the team at Papa Johns for the trust they are placing in Sun Holdings."

In January, Papa John's International announced its biggest franchisee development agreement in the company's history — a partnership with FountainVest Partners to open more than 1,350 stores across South China by 2040.

Papa Johns is co-headquartered in Atlanta, Ga. and Louisville, Kentucky and operated more than 5,600 restaurants in 50 countries and territories as of Dec. 26, 2021.