Papa Murphy’s Franchise FDD, Profits & Costs (2025)
Papa Murphy’s, founded in 1981, is the largest take-and-bake pizza chain in the United States. It was born from the merger of two local take-and-bake pizza companies, Papa Aldo’s Pizza and Murphy’s Pizza, in 1995.
The company is headquartered in Vancouver, Washington, and operates hundreds of locations across the United States, Canada, and the UAE.
As a leader in the take-and-bake segment, Papa Murphy’s has carved out a unique niche in the $46 billion pizza industry by allowing customers to assemble their fresh pizzas in-store to take home and bake themselves.
Papa Murphy’s differentiates itself by focusing on high-quality, fresh ingredients. All pizzas are made with hand-sliced veggies, freshly grated mozzarella, and butcher-quality meats.
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Initial Investment
How much does it cost to start a Papa Murphy’s franchise? It costs on average between $367,000 – $733,000 to start a Papa Murphy’s franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial or Subsequent Franchise Fee | $15,000 – $25,000 |
| Lease and Utilities Deposits and Payments | $3,000 – $7,500 |
| Leasehold Improvements | $139,000 – $325,000 |
| Signs | $9,000 – $25,000 |
| Stamped Architectural Drawings | $7,850 – $9,350 |
| As Built Survey | $2,800 – $4,100 |
| Opening Package (Equipment, Décor, POS, etc.) | $150,114 – $230,000 |
| Miscellaneous Development Service Fees | $0 – $1,270 |
| Inventory | $5,000 – $7,000 |
| Initial Marketing Fees and Expenses – 6 Months | $15,000 |
| Franchise Premises Rent – 3 Months | $7,284 – $17,374 |
| Materials and Supplies | $500 – $2,000 |
| Operations In-Store, Enterprise, and Foundations Training | $0 – $750 |
| Travel and Living Expenses for Training | $1,000 – $7,875 |
| Employee Training | $500 – $1,500 |
| Insurance – 3 Months | $375 – $1,175 |
| Bookkeeping/Payroll Service – 3 Months | $825 – $1,800 |
| Additional Funds, Working Capital, and Miscellaneous – 3 Months | $10,000 – $50,000 |
| Total Estimated Initial Investment | $367,428 – $733,124 |
Average Revenue (AUV)
How much revenue can you make with a Papa Murphy’s franchise? A Papa Murphy’s franchised restaurant makes on average $616,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $958,000 yearly revenue for similar pizza franchises. Below are a few Papa Murphy’s competitors as a comparison:
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We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Papa Murphy’s Franchise Disclosure Document
Frequently Asked Questions
How many Papa Murphy’s locations are there?
As of the latest available data, Papa Murphy’s operates 1,044 locations in the United States and Canada. Among these, 1,001 are franchise-owned and 43 are company-owned stores.
What is the total investment required to open a Papa Murphy’s franchise?
The total investment required to open a Papa Murphy’s franchise ranges from $367,000 to $733,000.
What are the ongoing fees for a Papa Murphy’s franchise?
Papa Murphy’s franchisees pay a 5% royalty fee on gross sales for ongoing support. Additionally, they contribute 3% of gross sales toward marketing fees, funding national and regional advertising efforts.
What are the financial requirements to become a Papa Murphy’s franchisee?
To become a Papa Murphy’s franchisee, the financial requirements include having a minimum net worth of $350,000. Additionally, potential franchisees must have at least $125,000 in liquid capital available. These financial thresholds ensure that franchisees have the necessary resources to cover initial startup costs and support the ongoing operation of the business.
How much can a Papa Murphy’s franchise owner expect to earn?
The average gross sales for a Papa Murphy’s franchise are approximately $0.62 million per location. Assuming a 15% operating profit margin, $0.62 million yearly revenue can result in $93,000 EBITDA annually.
Who owns Papa Murphy’s?
Papa Murphy’s is owned by MTY Food Group, a Canadian-based company. MTY Food Group acquired Papa Murphy’s in 2019 as part of its strategy to expand its portfolio of restaurant brands. MTY Food Group operates a wide range of quick-service and casual dining restaurant chains across North America.
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