Schnatter submitted his resignation Wednesday as a member of the university's board of trustees after Louisville National Association for the Advancement of Colored People (NAACP) called for Schnatter to either step down or be removed from the board, according to the Courier-Journal.
The company told the publication it is still working out the exact timing and details as to how it plans to remove Schnatter, who has always been the face of the chain, from advertisements.
Former UofL athletics director Tom Jurich and John Schnatter posed at Papa John's Cardinal Stadium in 2010. The pizza chain said Friday there are no plans to change its name. The promotion was suspended after CEO John Schnatter resigned in the wake of racial remarks.
John Schnatter, the pizza chain founder, admitted earlier this week that he used the N-word during an internal conference call. The promotion allowed baseball fans to get 40 percent off their order at Papa John's the day after any player hit a grand slam by using an online coupon code.
Schnatter remains on the board, and is still the company's largest shareholder with almost 30 percent of the stock. Take, for example, one from the summer of 2016, when Schnatter's usual red Papa John's shirt was replaced with a "Ghostbusters" jumpsuit in a 30-second TV spot and on a movie-themed pizza box.
Keith Hollingsworth, a professor at Morehouse College's business department, said keeping Schnatter on marketing would be a signal to people that the company does not have a problem with his comments, or that it didn't think they were a big deal.
"Five years from now, they might be able to start bringing him back".
Schnatter had used the slur during a media training exercise, Forbes said.
When discussing how he would distance himself from racist groups, Mr Schnatter said that Colonel Sanders, the founder of KFC, had never faced criticism for using the N-word, Forbes reported. "Regardless of the context, I apologize", the statement says.
Papa John's International Inc. began operations in 1984 and had more than 5,200 locations globally.