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Papa Murphy's Take 'N' Bake Pizza Franchise ProfileFood Franchises > Pizza |
What Are the Initial Investment Requirements for a Papa Murphy's Franchise?
To open a Papa Murphy's Take 'N' Bake Pizza franchise, you can expect an initial investment ranging from $367,244 to $670,498. This includes a franchise fee of $25,000. Additionally, you’ll need to budget for ongoing costs such as a 5% royalty fee and a 2% marketing fee. It's also important to have liquid cash available, with requirements between $10,000 and $50,000, and a net worth of $300,000 to $500,000 to ensure you can support your business in its early stages.
What Is the Financial Performance of Papa Murphy's Units?
Papa Murphy's franchises have demonstrated strong financial performance, with an average annual revenue of $680,607 per unit. The median revenue stands at $612,750, while some units have reported revenues as high as $2,494,897. The breakeven period is approximately 14 months, and franchisees can expect to recoup their initial investment in about 12 months, making it a potentially lucrative option for aspiring business owners.
What Are the Ongoing Expenses for Running a Papa Murphy's Franchise?
Operating a Papa Murphy's franchise comes with various ongoing expenses. On average, total operating expenses are around $194,664 annually, which includes wages and benefits of $60,607, rent costs of $10,060, and advertising expenses of $2,572. Understanding these costs is crucial for managing your cash flow and ensuring profitability over time.
How Many Papa Murphy's Locations Are There?
As of 2023, there are 1,085 Papa Murphy's Take 'N' Bake Pizza franchises across the U.S. The brand has seen a gradual decline in the number of franchised units from 1,121 in 2021 to 1,085 in 2023. Meanwhile, corporate-owned units have decreased from 27 to just 8 in the same period. This shift may indicate a focus on franchise growth and the potential for new franchisees to enter the market.
Papa Murphy's Take 'N' Bake Pizza Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Papa Murphy's Take 'N' Bake Pizza Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 1148 | 1125 | 1093 |
| Net Change YoY | -23 | -32 | |
| Franchised Units | 1121 | 1102 | 1085 |
| Net Change YoY | -19 | -17 | |
| Corporate Units | 27 | 23 | 8 |
| Net Change YoY | -4 | -15 |
Initial Investment
The initial investment for a Papa Murphy's Take 'N' Bake Pizza franchise ranges from $367,244 to $670,498. This includes a franchise fee of $25,000, which is a one-time payment made at the start of the franchise agreement. The total investment covers various costs, including equipment, leasehold improvements, and initial inventory.
Financial Performance
Papa Murphy's franchises typically generate an average annual revenue of $680,607, with a median annual revenue of $612,750. The revenue can vary significantly, with the lowest reported annual revenue at $132,039 and the highest at $2,494,897. This range highlights the potential for profitability within the franchise model.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 5% of gross sales along with a marketing fee of 2%. These fees contribute to the ongoing support from the franchisor, including brand marketing and operational assistance, ensuring franchisees can effectively promote their business in the local market.
Required Financial Qualifications
To qualify for a Papa Murphy's franchise, applicants must have a net worth between $300,000 and $500,000. Additionally, they should have access to liquid cash ranging from $10,000 to $50,000 to cover initial operational costs and ensure sufficient capital for running the business.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within approximately 14 months of operation. The investment payback period is relatively quick, estimated at around 12 months, allowing franchisees to recoup their initial investment and start realizing profits in a short time frame.
Franchise Growth
As of 2023, there are 1,085 franchised units of Papa Murphy's Take 'N' Bake Pizza. The number of franchised units has seen a gradual decline from 1,121 in 2021, indicating a need for strategic growth initiatives to stabilize and expand the franchise network in the competitive pizza market.
Frequently Asked Questions
The initial investment for a Papa Murphy's franchise ranges from $367,244 to $670,498, which includes the franchise fee, equipment, and other startup costs.