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Papa Murphy's Take 'N' Bake Pizza Franchise ProfileFood Franchises > Pizza |
How To Open a Papa Murphy's Take 'N' Bake Pizza Franchise?
To begin your journey with Papa Murphy's, you will typically start by submitting an initial inquiry to verify you meet the financial requirements, which include a minimum net worth of $350,000 and $125,000 in liquid cash. Following an initial screening and interviews with franchise representatives, you will review the Franchise Disclosure Document in detail. The process often involves attending a discovery day to meet the executive team and learn about the unique "Take 'N' Bake" business model. Once approved and the $25,000 initial franchise fee is paid, you will undergo extensive training to learn how to prepare fresh dough and high-quality toppings before opening your doors to the community.
What Might Make a Papa Murphy's Franchise a Good Choice?
Papa Murphy's offers a unique position in the pizza industry by providing fresh, scratch-made pizzas that customers bake at home, eliminating the need for expensive delivery fleets and ovens. The initial investment ranges from a low of $367,428 to a high of $733,124, which is often lower than traditional "hot pizza" concepts. While the brand has seen a contraction in franchised units from 1,128 in 2021 to 1,001 in 2023, it maintains a stable corporate presence with 43 company-owned units. Prospective owners should note the ongoing 5% royalty fee and 2% marketing fee while evaluating the brand's performance, which shows a median annual revenue per unit of $350,000.
Why You May Want to Start a Papa Murphy's Franchise?
If you are looking for a food service business that avoids the complexities of hot food delivery and on-site dining, Papa Murphy's is a standout candidate. Their model focuses on freshness, with dough made from scratch and vegetables hand-sliced daily. This allows franchisees to focus on prep and customer service rather than managing delivery drivers or complex kitchen equipment. The brand provides a structured system for operations, and with over 1,000 total units across the system, you are joining a well-established household name. It is an ideal opportunity for an owner-operator who values quality ingredients and a business model that prioritizes the "fresh" aspect of the pizza experience.
Is Owning a Papa Murphy's Franchise the Right Move for You?
Deciding to join Papa Murphy's requires a careful look at the long-term financial commitment and market trends. The data indicates an investment payback period of approximately 96 months and a breakeven time of 97 months. With a highest annual revenue per unit reaching $554,000, there is potential for strong performance in the right territory. However, you must be prepared to navigate a competitive landscape where the franchised unit count has decreased recently. If you have the required $125,000 in liquid capital and a passion for providing families with a fresh, convenient meal solution, Papa Murphy's may offer the entrepreneurial path you are seeking.
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 | 2024 |
|---|---|---|---|---|
| Total Units | 1171 | 1116 | 1044 | 1044 |
| Net Change YoY | N/A | -55 | -72 | 0 |
| Franchised Units | 1128 | 1073 | 1001 | N/A |
| Net Change YoY | N/A | -55 | -72 | N/A |
| Corporate Units | 43 | 43 | 43 | 43 |
| Net Change YoY | N/A | 0 | 0 | 0 |
Investment Requirements
To open a Papa Murphy's franchise, candidates must meet a minimum net worth requirement of $350,000 and possess at least $125,000 in liquid cash. The total initial investment for a single unit ranges from a low of $367,428 to a high of $733,124, which includes an initial franchise fee of $25,000.
Ongoing Fees and Royalties
Franchisees are responsible for ongoing operational costs including a royalty fee of 5% of gross sales for new units. Additionally, there is a 2% marketing fee to support brand-wide promotional efforts and advertising campaigns.
Financial Performance
The system shows a wide range of unit performance, with the highest annual revenue per unit reaching $554,000 and the lowest at $688,133. The median annual revenue per unit is reported at $350,000, while the average annual revenue stands at $125,000.
Return on Investment
Prospective owners should prepare for a long-term commitment regarding capital recovery. Based on the latest disclosure data, the estimated time to reach a breakeven point is approximately 97 months, with a total investment payback period of 96 months.
Unit Growth and Trends
The franchise system has seen a contraction in franchised locations over recent years, moving from 1,128 units in 2021 to 1,001 units by 2023. Meanwhile, the number of corporate-owned units has remained stable at 43 locations through the 2024 reporting period.
Business Model
Papa Murphy's operates a unique "Take 'N' Bake" model in the pizza industry, focusing on providing fresh, high-quality ingredients for customers to bake at home. This model allows for smaller footprints and reduced overhead compared to traditional dine-in or delivery pizzerias, as it eliminates the need for commercial ovens and delivery fleets.
Frequently Asked Questions
The total initial investment required to open a Papa Murphy's location typically ranges from $367,428 on the low end to $733,124 on the high end. This investment covers various startup costs, including the initial franchise fee, equipment, and leasehold improvements.