Papa Johns International has transferred ownership of 85 US restaurants in the Washington DC and Baltimore markets to Pie Investments under a refranchising arrangement.
Pie Investments, headed by franchisee operator Chris Patel, has taken over the outlets previously held by Colonel’s Limited.
William Freitas, who headed Colonel’s Limited and was among Papa Johns' franchise partners, is retiring.
A joint venture between Papa Johns and Steeplechase Express, Colonel’s Limited opened its first Papa John’s site in 1993.
Papa Johns North America chief financial officer and president Ravi Thanawala stated: “Chris Patel’s growth mindset and entrepreneurial spirit are exactly the qualities Papa Johns is looking to emphasise among our franchisees as we work to be the best pizza makers in the business.
“Chris has built a team of leaders passionate about pizza, and his impressive record in acquiring restaurants and improving their profitability is well known across the Papa Johns system.”
Alongside the refranchising move, Papa Johns and Pie Investments plan to add 52 new outlets by 2030.
The expansion is targeted for the Greater Philadelphia region as well as the Washington DC and Baltimore markets.
Pie Investments already runs Papa Johns restaurants across the US Northeast.
Following the latest transaction, it now operates over 150 of the chain’s locations and aims to manage 250 restaurants by 2030.
Pie Investments chief operating officer and equal partner Chris Patel stated: “Papa Johns' well-known commitment to quality continues to make the brand an attractive investment for entrepreneurs.
“Papa Johns' leadership is empowering franchisees to drive success, with tools to elevate our operations and enhance our customer experience. We’re looking forward to continued growth with Papa Johns and bringing the brand promise of Better Ingredients. Better Pizza to new groups of pizza lovers.”
The refranchising comes against the backdrop of weaker quarterly profit for the brand.
It reported net income of $9.67m for the second quarter (Q2) of 2025, down from $12.53m in the same quarter a year earlier.
The company attributed the decline to increased general and administrative expenses, which resulted from investments in marketing and its loyalty programme, even though overall revenues were higher.
The decline was also due to a $3.7m rise in incentive compensation under the management incentive plan, and increased food and labour costs at company-owned restaurants.
