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A potential deal is likely to be valued at around Y70bn ($452m).
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The company has notified select partners that the charge will take effect from 25 November.
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Senior leaders are in talks with potential advisers about options for almost a quarter of its 4,300 venues.
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Papa John’s board will review any offer while continuing to pursue its current strategy.
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Sigri, established in 2015, draws inspiration from India’s roadside dhabas.
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The new outlet will offer Malaysian street dishes, including Char Kway Teow and roti canai.
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The funds will be used to speed up product innovation and expand the team.
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