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What is the REAL Papa Murphy’s Franchise Cost?
If it’s a dream for you to own a pizza place, you can always go for a franchise instead of starting one from scratch. Sure, you have options from established brands, such as Pizza Hut or Little Caesars. But they might have more locations, and you will have to pay higher investment fees. And if you want to go unconventional, why not put Papa Murphy’s Take ‘N’ Bake Pizza on your list? To know more about the franchise and Papa Murphy’s franchise cost, read more below.
Papa Murphy’s Franchise Overview
In 1995, Papa Murphy’s Take ‘N’ Bake Pizza was born after Papa Aldo’s and Murphy’s Pizza joined forces to create the new pizza chain. Unlike other pizza chains, Papa Murphy’s allows customers to customize their pizzas, and they can take them home to bake them. This means that there are no large overhead and investment costs.
Here is a selection of their pizzas that customers can try:
- Original Crust
- Thin Crust
- XLNY
- Stuffed
- Gluten-Free Crust
- Pan
- Keto-Friendly (Crustless)
- Mini Murph
And they have other food on the menu, such as cheesy bread, chocolate chip cookies, S’mores bars, and cinnamon wheels.
Currently, they have stores in the USA, Canada, and the United Arab Emirates.
But if you still want to open a Papa Murphy’s, here’s where you can open one:
- California
- Arizona
- Colorado
- Texas
- Iowa
- Missouri
- Illinois
- Kentucky
Anyone planning to open a Papa Murphy’s should have strong business acumen and a customer service mindset. Plus, they should know how to manage and lead teams and love pizza!
Training
Papa Murphy’s requires a signatory of the Franchise Agreement (FA) to complete the training program. The following training programs are included:
- In-Store Compatibility Check
- Operations In-Store
- Enterprise Solution
- Foundations Class
And these training programs are conducted in selected stores. That said, trainees should travel to designated stores to complete their training. Even if that’s the case, one training program, particularly the Foundations Class, is held at the franchisor’s Support Center in Washington or virtually.
The franchisor may also hold other training programs within the year, and they could either encourage or mandate franchisees to attend those meetings.
Territory
Unlike most franchises, Papa Murphy’s will give the franchisee the location. And the franchisee will not have an exclusive territory.
Obligation and Terms of Agreement
The franchisee or their appointed manager SHOULD oversee the operations of their franchise. The designated manager should complete the mandatory training program.
For the items they can sell at their store, ONLY approved Papa Murphy’s items are allowed for sale. Plus, franchisees must also ensure that the ingredients, recipes, and other requirements must be followed.
The franchisee’s initial franchise term is ten years. Should the franchisee wish to expand their ownership of a Papa Murphy’s restaurant, the franchisor can grant them an additional 5-year term.
Papa Murphy’s Franchise Cost
Before franchising a Papa Murphy’s, you should know how much you need to invest in one. Check out below the Papa Murphy’s franchise cost.
But if you think that a Papa Murphy’s franchise will be costly, don’t worry. They offer financing options through a third-party lender.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 |
| Lease and Utilities Deposits and Payments | $2,500 | $6,000 |
| Leasehold Improvements | $75,715 | $179,410 |
| Signs | $6,000 | $10,000 |
| Stamped Architectural Drawings | $6,250 | $9,350 |
| As Built Surveys | $2,500 | $3,700 |
| Opening Package (including equipment and supplies), Decor, Cabinets, Point-of Sale System and Smallwares | $123,750 | $183,550 |
| Miscellaneous Development Service Fees | $0 | $1,270 |
| Inventory | $5,000 | $7,000 |
| Initial Marketing Fees and Expenses – 6 months | $30,000 | $30,000 |
| Franchise Premises Rent – 3 months | $3,090 | $10,526 |
| Materials and Supplies | $500 | $2,000 |
| Operations Training and Foundations Class | $0 | $500 |
| Enterprise Solution Training | $400 | $400 |
| Travel and Living Expenses While Training (In-Store Training, Operations Training, Foundations Class and Enterprise Solutions Training) | $3,395 | $12,150 |
| Employee Training | $500 | $1,500 |
| Insurance – 3 months | $375 | $1,175 |
| Bookkeeping/ Payroll Service – 3 months | $1,500 | $1,600 |
| Additional Funds, Working Capital, and Miscellaneous Expenses – 3 months. | $10,000 | $50,000 |
| ESTIMATED TOTAL | $296,075 | $534,731 |
Other Cost
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 5% of weekly net sales. |
| Brand Marketing Fee | 2% of weekly net sales. |
| Local Marketing and Promotion and Regional Cooperative Advertising | Minimum of the greater of 5% of net sales or $2,000 during each month. |
| Online Ordering Fee | $0.35 per online transaction. |
| Marketing Kits | $45 to $500 |
| Customer Relations Management | $15 to $21 per month. |
| Loyalty Program | $53 per month. |
| Audit | The costs of conducting an audit, plus related expenses. |
| Insurance | The franchisee’s insurance must include at a minimum comprehensive general liability coverage, including products liability coverage, in amount of at least $2,000,000 per occurrence and business automobile liability insurance in an amount of at least $1,000,000 per occurrence. The franchisee must name the franchisor as an additional insured. |
| Transfer Fee | $25,000 less $2,500 times the number of full years remaining on the initial term of the Franchise Agreement; or, if the transfer occurs during a successive term, $25,000 less $2,500 times the number of full years remaining on the Successive Franchise Agreement, but in no event less than $12,500. |
| Indemnification | Varies. |
| Additional Assistance or Training | $100 to $300 per day. |
| Franchise Conventions | $1,000 to $3,500 |
| Convention Materials | Up to $500. |
| Successive Franchise Fee | One-half of the then-current franchise fee. |
| Relocation Fee | $5,000 |
| Interest | Interest of 1.5% per month unless otherwise limited by law (18% per annum). |
| Bookkeeping/ Payroll Service | $0 to $500 |
| Non-sufficient Funds Fees | $35, plus reimbursement of fees incurred by the franchisor. |
| POS Change of Ownership Fee | $475 |
| Store Solutions Team Support | $580 per year. |
| Software Maintenance | $388 per year. |
| Hosting Fees, Anti-Virus Service and Additional Services | $585 per year. |
| Late Payment Fee | $75 |
| Managed Firewall Service | $35 to $55 per month. |
| Business Class High Speed lnternet Access | $50 to $200 per month. |
| Secure Payment Gateway | $10 per month. |
| Upgrade, Refurbish and Replace | $4,000 to $50,000 |
| Expenses in Evaluating a Supplier Proposed by Franchisees | Franchisor’s reasonable expenses. |
| Step-In Costs | Personnel and administrative costs, plus 15%. |
| Assignment Fees | Up to $500. |
Did You Know?
- Newsweek named them one of America’s beloved pizza chains in 2022. But that’s not the only recognition they received from Newsweek, since they were also named best customer service in 2022, two years running!
- Papa Murphy’s received a Bronze in the Franchising@WORK Awards. They’re one of the best places to work for!
- Customers that are lactose intolerant and have a gluten allergy can enjoy eating a Papa Murphy’s pizza.
- They rank #14 in the Top Pizza franchises in the Entrepreneur 500 list.
- Since Papa Murphy’s values the community, they also have a fundraising option for customers that want the community to get together for specific events. Some ideas are school fundraisers, sports teams, and clubs.
And if you’re interested in franchising a Papa Murphy’s, start by requesting information here. Once you fill out their franchising request info form, they will contact you and give you info about their franchise.
And for other franchise info, read more here at Franchise HOW!