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Description
Investment Icon

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.

Fees Icon

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.

Revenue Icon

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.

Breakeven Icon

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.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$300,000 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

12 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$25,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

5%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

14 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$367,244 - $670,498
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$10,000 - $50,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$680,607
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$612,750
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$2,494,897
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$132,039
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Food Franchises
Category icon A more specific division within the broader industry.

i Category:

Pizza
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Eric Lefebvre
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

8000 NE Parkway Drive, Suite 350Vancouver, Washington 986
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2010
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Papa Murphy's International LLC

Papa Murphy's Take 'N' Bake Pizza Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

1093
The number of locations owned by independent franchisees.

Franchised Units i

1085
The number of locations owned and run by the franchisor.

Corporate Units i

8
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
Investment About

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.

Potential About

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.

Metrics About

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.

Fees About

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 About

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.

Units About

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.