Papa Murphy's

The modern family’s constant quest for convenient, high-quality meal solutions that don't compromise on freshness or taste often presents a significant challenge, leading many to seek alternatives that balance speed with nutritional value. Papa Murphy's International, LLC, a distinguished take-and-bake pizza franchise, masterfully addresses this consumer problem by offering a unique business model centered on fresh, made-to-order pizzas that customers conveniently bake at home, thus providing a customizable and engaging dining experience without the extensive preparation time. The origins of this innovative concept trace back to two distinct take-and-bake pizza chains: Papa Aldo's Pizza, which was founded in 1981 in Hillsboro, Oregon, and Murphy's Pizza, established in 1984 by Robert Graham in Petaluma, California. These two successful ventures were later consolidated in 1995 by entrepreneur Terry Collins to form Papa Murphy's International, Inc., with Mark Venditto and Stephanie Humphrey also recognized as founders who shaped the brand's early trajectory. Headquartered in Vancouver, Washington, the company has grown into a significant player within the Limited-Service Restaurants category, demonstrating its enduring appeal in a competitive market. In 2019, Papa Murphy's was acquired by the Canadian private food conglomerate MTY Food Group Inc. for a reported $190 million, becoming a subsidiary of Papa Murphy's Holdings, Inc., a strategic move that provided substantial corporate backing. Under the leadership of current Chief Executive Officer Eric Lefebvre, alongside key executives like Renée St-Onge as Chief Financial Officer and Nik Rupp as Chief Operating Officer, Papa Murphy's has maintained a substantial presence with over a thousand locations for many years, reporting 1,079 locations globally as of the end of 2024. More specifically, in 2025, the brand comprised 1,044 total units, with 1,001 franchised-owned stores and 43 company-owned locations, operating across the United States, Canada, and the United Arab Emirates. This robust scale and international footprint solidify Papa Murphy's position as a prominent and accessible mid-tier investment opportunity for franchise investors seeking a high-growth potential within the expansive pizza market.

The pizza restaurant industry itself represents a colossal global market, valued at over $300 billion, with consistent projections for continued growth fueled by an increasing consumer demand for convenient, customizable, and value-driven meal options. This substantial market size and its positive growth trajectory make the Limited-Service Restaurants category, and specifically pizza franchises, particularly attractive to investors. Key consumer trends driving this demand include a rising preference for at-home dining experiences, a heightened focus on fresh ingredients and customization, and the perpetual need for quick yet satisfying meal solutions for busy individuals and families. Papa Murphy's unique take-and-bake model is exceptionally well-positioned to capitalize on these secular tailwinds, as it directly caters to the desire for fresh, unbaked pizzas that allow customers to bake them at home at their convenience, providing a level of control and perceived freshness often absent in traditional ready-to-eat fast food. This model aligns with the growing trend of value-conscious consumers seeking to stretch their food budgets by preparing meals at home, while still enjoying the quality and variety of restaurant offerings. The industry's competitive dynamics, while fragmented with numerous local and national players, also present opportunities for established brands like Papa Murphy's that have carved out a distinct niche. Macroeconomic forces, such as shifts towards more home-centric lifestyles and the increasing adoption of digital ordering platforms, further create significant opportunities for concepts that can adapt and deliver on these evolving consumer expectations. The resilience of the pizza market, even during economic fluctuations, underscores its stability as an investment category, with Papa Murphy's offering a proven concept within this dynamic landscape.

Investing in a Papa Murphy's franchise involves a structured financial commitment, with an initial franchise fee of $25,000 for the first unit, and a reduced fee of $15,000 for each additional unit, payable upon signing the franchise agreement. For prospective multi-unit franchisees, full payment of these fees is required upfront, reflecting a commitment to scaling operations. This initial franchise fee, which can also be cited as ranging from $15,000 to $25,000, is competitive within the Limited-Service Restaurants sector, offering an accessible entry point for a well-established brand. The total estimated initial investment required to open a Papa Murphy's franchise, according to the 2025 FDD, ranges from $367,428 to $733,124. This comprehensive range covers various essential expenditures including leasehold improvements, equipment, initial inventory, and working capital, with slight variations seen in other disclosures such as $367,000 to $733,000, or $308,469 to $557,879 based on the 2022 FDD, and $367,244 to $670,498. These figures position Papa Murphy's as a mid-tier investment opportunity, often characterized as offering high growth potential without the prohibitive capital requirements of some premium franchise concepts. To qualify for a Papa Murphy's franchise, prospective owners typically need a minimum net worth of $350,000 and at least $125,000 in liquid capital, in addition to demonstrating a good credit history with a minimum score of 670, ensuring financial stability and readiness. Ongoing fees include a royalty rate of 5% of weekly net sales, which is a standard operational cost for leveraging the brand's system and support. Franchisees also contribute to a brand marketing fund, which is 2% of weekly net sales, with some information also suggesting a 3% contribution of gross sales towards marketing fees, ensuring consistent national and regional brand promotion. Furthermore, a local marketing, promotion, or regional cooperative advertising requirement mandates a minimum contribution of the greater of 5% of net sales or $2,000 per month, emphasizing localized outreach. Additional recurring costs include $0.35 per online transaction, $10 per month for certain services, $53 per month, and a percentage ranging from 6.06% to 13.63% of the total amount of gift card redemptions, covering various operational and digital infrastructure needs. The corporate backing provided by MTY Food Group Inc., which acquired Papa Murphy's in 2019, further strengthens the brand's financial foundation and support systems for franchisees, making it a sound consideration for those exploring financing options like SBA eligibility.

The operational model for a Papa Murphy's franchise is designed for efficiency and simplicity, primarily focusing on the preparation of fresh, made-to-order pizzas for customer pickup, eliminating the need for on-site ovens and complex cooking infrastructure. Daily operations for a franchisee revolve around meticulous product preparation, ensuring high-quality ingredients are assembled to customer specifications, coupled with efficient customer service and diligent inventory management. This streamlined approach significantly impacts staffing requirements and the labor model, as the absence of baking operations reduces the need for specialized cooking staff. The 2022 FDD disclosed an average employee labor cost of 18.7% and a median of 18.4%, with average management costs at 4.8% and a median of 5.2%, alongside an average of 3.1% for payroll taxes and benefits, illustrating a lean and efficient labor structure. Papa Murphy's primarily operates through retail storefronts, often situated in suburban areas, catering to family-oriented demographics. The comprehensive training program provided by Papa Murphy's is meticulously designed to equip franchisees and their teams with all necessary skills, encompassing Operations In-Store Training and Enterprise Solution Training, conducted at designated training stores. This robust program covers essential operational aspects such as precise product preparation, effective business operations, sophisticated inventory management, strategic marketing, and diligent financial controls, totaling 250 hours of hands-on, on-the-job instruction and an additional 15 hours of focused classroom training. The ongoing support structure for franchisees is notably robust, with corporate resources described as "extremely supportive," ensuring new franchisees are connected with experienced owners for mentorship and guidance. This comprehensive support extends to operational assistance, targeted marketing aid, expert site selection guidance, access to proprietary software systems, and a dedicated franchisee intranet platform, fostering a collaborative environment. The franchisor also periodically organizes conventions or regional meetings, facilitating knowledge sharing and networking among franchisees. While franchisees are granted a specific location for their store, they do not receive an exclusive territory, with site approvals carefully considering market analysis, market penetration plans, franchise placement strategies, and prior commitments, ensuring strategic growth for Papa Murphy's. The model encourages multi-unit ownership, offering a reduced franchise fee for additional units, making it attractive for owner-operators looking to expand their portfolio.

Papa Murphy's stands out in the franchise landscape for its commitment to transparency, voluntarily providing detailed financial performance representations (Item 19) in its Franchise Disclosure Document. According to the 2025 FDD, the average revenue per unit (AUV) for a franchised restaurant is reported at $616,000 per year, with the average net sales for 2024 reaching $688,133. Further granular data from the 2022 FDD, based on 819 franchised stores operating for the 52 weeks ending September 27, 2021, offers a deeper insight into unit-level performance. During this period, the highest net sales achieved by a single unit were an impressive $2,495,542, while the lowest recorded net sales were $146,368, illustrating the potential range of performance based on various factors. The average gross sales for these units were $806,539, with a median gross sales figure of $727,715. Correspondingly, the average net sales stood at $697,417, and the median net sales at $622,937, indicating a solid baseline for unit profitability. Notably, 333 stores, representing 40.7% of the reporting units, exceeded the average net sales, highlighting the potential for strong performance under effective management. Regarding profit margins and operating costs, the 2022 FDD provided crucial benchmarks: the average cost of goods sold (COGS) was 31.2%, with a median of 31.2%, demonstrating consistent supply chain efficiency. Employee labor averaged 18.7%, with a median of 18.4%, while management costs averaged 4.8% and had a median of 5.2%. Payroll taxes and benefits constituted an average of 3.1% of sales. These detailed figures enable prospective franchisees to project potential profitability and understand the key drivers of unit economics. Historically, Papa Murphy's has shown robust systemwide sales growth, totaling $585 million in 2008, marking a significant 17% increase from the prior year. Sales continued to grow to $702 million in 2011 and further to $800 million from 1,350 outlets in 2012, showcasing a period of strong expansion. While system sales reportedly fell by 4% to $728 million in the year prior to October 2025, the disclosed unit-level economics, combined with the unique operational model, provide a compelling financial foundation for the Papa Murphy's franchise opportunity, offering a clear path to understanding potential owner earnings and return on investment.

Despite a period of contraction, Papa Murphy's is actively pursuing a strategic "smart growth expansion" plan, with a clear goal of opening hundreds of new locations nationwide in the coming years. The brand has maintained a substantial presence with over a thousand locations for many years, reaching over 1,500 locations as of August 2016 and more than 1,300 outlets by 2019, demonstrating its capacity for large-scale operation. However, between 2019 and 2024, Papa Murphy's experienced a challenging period, closing nearly 300 restaurants, which represented over 20% of its system, leading to a system count of 1,079 locations globally by the end of 2024 and 1,044 total units in 2025. In a recent quarter, the company opened 96 new restaurants while closing 81, indicating a lower closure rate compared to the 105 closures reported the previous year, signaling a stabilization and renewed focus on net unit growth. The expansion strategy is precisely focused on deepening its footprint within existing, high-potential markets such as Alabama, Arkansas, Florida, Kentucky, Michigan, Missouri, North Carolina, Tennessee, Texas, and Arizona, rather than broad, unfocused expansion. This targeted approach aims to leverage existing brand recognition and supply chain efficiencies. The acquisition of Papa Murphy's by MTY Food Group Inc. in 2019 for $190 million infused new corporate backing and strategic direction. Under the leadership of Eric Lefebvre as CEO, with support from Renée St-Onge as CFO, Nik Rupp as COO, Kim McBee overseeing Guest Experience and Brand Marketing, and Shauna Walker leading Franchise Performance and Engagement, the brand is poised for a revitalized growth phase. Papa Murphy's competitive moat is built upon its distinctive take-and-bake model