(Reuters) – Papa John’s Worldwide Inc on Friday mentioned it might decrease royalties and costs charged to its U.S. and Canadian franchisees as gross sales on the U.S. pizza chain decline following the acrimonious exit of it founder.
The corporate will reduce royalties, food-service pricing and on-line charges by means of 2018, whereas additionally funding the rebranding of the chain.
This comes days after the corporate mentioned its North American comparable gross sales for July had fallen 10.5 % and would proceed falling within the coming months.
Founder John Schnatter resigned as chairman of the board in July following experiences that he had used a racial slur on a media coaching convention name.
“We admire the help being prolonged to our franchisees and consider the help program will assist mitigate the affect that the founder’s inexcusable phrases and actions have had on franchisees,” Vaughn Frey, president of Papa John’s Franchise Affiliation mentioned in an announcement.
(Reporting by Karan Nagarkatti in Bengaluru; Enhancing by Cynthia Osterman)
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