Papa John’s to Sell PZZA Group Restaurants
The pizza chain said the asset purchase furthers its initiative to refranchise corporate-owned locations with proven partners.
Papa John’s International, Inc. (PZZA) said it has agreed to sell restaurants owned by PZZA Group, LLC and Magic City Pizzerias, LLC, in an asset-purchase deal that furthers its initiative to strategically refranchise corporate-owned restaurants in partnership with proven franchise partners.
The pizza company did not disclose a purchase price, an exchange ratio, or a closing date in the announcement. The two entities are named as the sellers of the restaurants.
John Matter, Global Chief Development Officer and Assistant Corporate Secretary at Papa John’s, said the incoming operators have a track record the company wants to point to across the system. “Wade and his team have long stood as a leading example to other franchise partners of operational excellence, customer service, team culture and community support,” Matter said.
The move fits a pattern of refranchising that Papa John’s has already executed. In November 2025, the company completed a strategic refranchising and new-restaurant development agreement with Pie Investments, led by Chris Patel, which assumed 85 restaurants previously operated by Colonel’s Limited, LLC, a joint venture with Steeplechase Express. Patel, who then announced plans to open an additional 52 restaurants by 2030, brought Pie Investments to more than 150 Papa John’s locations.
That November deal followed a period of growth for Patel and Pie Investments across the Northeast and was paired with plans to expand the footprint across Greater Philadelphia, Washington, D.C., and Baltimore. Ravi Thanawala, then Chief Financial Officer and President, North America, said Patel’s growth mindset and record in acquiring restaurants and improving profitability were qualities the company wanted to emphasize among franchisees.
Papa John’s has also been refranchising on a smaller scale in recent quarters. In the year ended December 29, 2024, the company refranchised 15 domestic company-owned restaurants and 61 international company-owned restaurants, moving those units into franchised columns.
As of June 28, 2026, Papa John’s operated 5,978 restaurants in 51 countries and territories, including 456 domestic company-owned locations and 2,983 domestic franchised locations in North America. The company updated its 2026 outlook in August, lowering global system-wide restaurant sales to down 2% to 4% and North America comparable sales to down 6% to 8%, and cutting adjusted EBITDA guidance to $180 million to $190 million.
The PZZA Group and Magic City sale is another step in that refranchising program, with the incoming partners’ operations serving as the model the company wants other franchisees to follow.