Papa Johns 2005 Annual Report Download - page 12

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Franchise Training and Support. During late 2005, the field support structure for domestic franchisees
was reorganized and merged into the Company-owned restaurant management structure. The new field
support structure consists of Franchise Business Directors (“FBDs”), each of whom is responsible for
serving an average of approximately 100 franchise units. Every franchisee is required to have a principal
operator approved by us who satisfactorily completes our required training program and who devotes his
or her full business time and efforts to the operation of the franchisee’s restaurants. Each franchise
restaurant manager is also required to complete our Company-certified management training program.
Domestically, we provide an on-site training crew three days before and three days after the opening of a
franchisee’s first two restaurants. Internationally, we provide an on-site training crew five days before
and five days after the opening of a franchisee’s first two stores. Ongoing supervision of training is
monitored by the franchise training team. Multi-unit franchisees are encouraged to appoint training store
general managers or hire a full-time training coordinator certified to deliver Company-approved
programs in order to train new team members and management candidates for their restaurants. Our
FBD’s maintain open communication with the franchise community, relaying operating and marketing
information and new ideas between franchisees and us. Internationally, training is monitored by our
international director of training as well as regional directors and international business managers
assigned to specific franchisee territories. We also maintain communications with our franchisees
through periodic system-wide meetings and newsletters.
Franchise Operations. All franchisees are required to operate their Papa John’s restaurants in compliance
with our policies, standards and specifications, including matters such as menu items, ingredients,
materials, supplies, services, fixtures, furnishings, decor and signs. Each franchisee has full discretion to
determine the prices to be charged to its customers.
Franchise Advisory Council. We have a Franchise Advisory Council that consists of Company and
franchisee representatives of domestically owned restaurants. The Advisory Council and subcommittees
hold regular meetings to discuss new marketing ideas, operations, growth and other relevant issues. In
addition, the Company is aware that certain franchisees have formed an operators' exchange group for the
purpose of communicating and addressing issues, needs and opportunities among its members and the
Company.
We currently communicate with, and receive input from, our franchisees in several forms, including
through the Company’s Franchise Advisory Council, annual operations conferences and various regional
meetings conducted with franchisees throughout the year and participation in an operators’ exchange best
practices forum in which numerous franchisees also participate. We are committed to communicating
with, and receiving input from, our franchisees.
Reporting and Business Processes. We collect sales and other operating information from domestic Papa
John’s franchisees daily. We have agreements with substantially all Papa John’s domestic franchisees
permitting us to debit electronically the franchisees’ bank accounts for substantially all payments to us
including the payment of royalties, Marketing Fund contributions, risk management services, and
purchases from our Print and Promotions operations and QC Centers. This system significantly reduces
the resources needed to process receivables, improves cash flow and mitigates the amount of past-due
accounts related to these items. Domestic franchisees generally are required to purchase and install the
Papa John’s PROFIT System in their restaurants (see Company Operations — Point of Sale Technology).