Papa John's to Reduce Franchisee Stimulus Package

In a sign that the economy is improving for at least some fast-food chains, Papa John's International Inc announced that it will phase down its own franchise stimulus package for its franchisees where it deferred or waived royalty payments and reduced online ordering fees in an attempt to keep franchisees afloat.

Papa John's has been helping keep some franchisees afloat over the last year by deferring or waiving royalty payments and cutting fees for online ordering, while also putting more money toward national advertising campaigns. Such moves have helped prevent some stores from closing, as Papa John's tries to keep from closing fewer stores than top competitors Domino's Pizza Inc. and Yum Brands Inc.'s Pizza Hut. Various initiatives cost the company $2.2 million in the second quarter, up from just $75,000 last year. But with cheese costs plunging, Papa John's profits are gaining, both at its corporate stores and for its franchisees, reducing the need for further support down the road. - WSJ $$