Papa Johns Lends to Struggling Franchisees

Papa John's estimates that the rising unemployed will result in a lowering of pizza sales in the next year and a half. To help franchisees get through the soft demand and the current credit crunch, where lending insitutions have really clamped down on franchisee loans:

Papa John's Chief Executive Nigel CEO [sic] Travis said the company would "lend financial assistance where it makes sense to help facilitate transfers of underperforming franchise units, either to stronger existing operators or new franchisees." - Reuters

The good news is that escalating commodity costs are coming down to give some relief. Pizza Marketplace reports that Papa John's has cut the price of cheeze, which is expected to reduce a franchise's food costs by 1.4 percent.