Papa Murphys
Papa Murphy's offers take-and-bake pizza, salads, and desserts through franchised stores. Known for its convenient, made-to-order meals, it operates in the quick-service restaurant sector.
About Papa Murphys
Papa Murphy's Holdings, Inc. is a take-and-bake pizza company based in Vancouver, Washington. It began in 1995 as the merger of two local take-and-bake pizza companies: Papa Aldo's Pizza and Murphy's Pizza. The company and its franchisees operate more than 1,300 outlets in the United States, Canada, and the United Arab Emirates. In April 2019, it was announced that the company would be acquired by MTY Food Group for $190 million.
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Papa Murphys franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Papa Murphy's Franchised Store is from $367,428 to $733,124. This includes an Initial Franchise Fee of $25,000 for your first Franchised Store and $15,000 for each subsequent one [p.1].
What is the initial franchise fee?
The Initial Franchise Fee is $25,000 when you sign the Franchise Agreement for the purchase of your first Franchised Store. This fee is nonrefundable [p.27].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of Net Sales [p.219]. Additionally, there is a brand marketing fee of 2% of Net Sales that goes into a marketing fund used for various promotional activities [p.223]. These fees are based on Net Sales and must be paid in the manner and time designated by the company [p.33].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement grants you the right to operate using their methods for ten years from the Commencement Date [p.234]. To renew the agreement beyond this initial term, you must enter into a Successive Franchise Agreement, which will be for five years and is contingent on satisfactory performance and approval by the franchisor [p.234].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot sell or transfer your franchise without the franchisor's written approval [p.259]. This requirement applies regardless of the form of transfer and is subject to the same terms and conditions outlined in the Franchise Agreement.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if either NCR terminates its relationship with PMI [p.303], all franchise agreements between Franchise Owner and PMI have terminated or expired and Franchise Owner is no longer operating any Papa Murphy's Take 'N' Bake stores [p.303]. Additionally, PMI may terminate the agreement if Franchise Owner is in default of this Agreement or any other agreement between Franchise Owner and PMI [p.303]. The franchisor can also immediately terminate the agreement without giving an opportunity to cure if specified conditions are met [p.236].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. According to the FDD excerpts, you will operate within a specific location but may face competition from other franchisees, company-owned operations, and other channels of distribution controlled by the franchisor [p.53-54].
What training and ongoing support does the franchisor provide?
The franchisor provides ongoing assistance in training, marketing, sales, and through the use of the Operations Manual [p.48]. Michelle Whipple, an Operations Specialist and Field Trainer at Papa Murphy's Support Center, supports new franchisees' training programs and works to improve them based on field evaluations [p.48].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations other than those specified in ITEM 19 [p.60]. If you are purchasing an existing outlet, they may provide actual records of that outlet's performance [p.65]. However, any other financial performance information or projections should be reported to the franchisor and relevant regulatory bodies as instructed [p.65].
What am I restricted to selling, and where must I buy supplies?
You are required to sell all products designated by the franchisor, consistent with their Methods of Operation. Additionally, you must immediately incorporate into your Franchised Business any new products and services designated by them [p.219]. Regarding supplies, you may have to purchase or lease items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.4].