In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Papa Murphy’s franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Papa Murphy’s franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Papa Murphy’s outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Papa Murphy’s franchise opportunity

Section V – Presentation and analysis of Papa Murphy’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023, 2022, and 2021 average, median, highest, and lowest net sales for the domestic franchise-owned Papa Murphy’s Take ‘N’ Bake Pizza stores that were open and operating for all of the trailing 52 weeks ending on the last day of the applicable fiscal year, as well as the average net sales of the highest 10% and lowest 10%

• 2023, 2022, and 2021 average, median, highest, and lowest net sales for the domestic franchise-owned Papa Murphy’s Take ‘N’ Bake Pizza stores (West) that were open and operating for all of the trailing 52 weeks ending on the last day of the applicable fiscal year, as well as the average net sales of the highest 10% and lowest 10%

• 2023, 2022, and 2021 average, median, highest, and lowest net sales for the domestic franchise-owned Papa Murphy’s Take ‘N’ Bake Pizza stores (Central) that were open and operating for all of the trailing 52 weeks ending on the last day of the applicable fiscal year, as well as the average net sales of the highest 10% and lowest 10%

• 2023, 2022, and 2021 average, median, highest, and lowest net sales for the domestic franchise-owned Papa Murphy’s Take ‘N’ Bake Pizza stores (East) that were open and operating for all of the trailing 52 weeks ending on the last day of the applicable fiscal year, as well as the average net sales of the highest 10% and lowest 10%

Section VI – Key ratios, comparables, computations, and analyses for the Papa Murphy’s franchise opportunity (exclusive content for Platinum subscribers)

Section I – Papa Murphy’s Franchise Costs

• Initial or Subsequent Franchise Fee:  $15,000 to $25,000
• Lease and Utilities Deposits and Payments:  $3,000 to $7,500
• Leasehold Improvements:  $139,000 to $278,000
• Signs:  $9,000 to $25,000
• Stamped Architectural Drawings:  $6,250 to $9,350
• As Built Survey:  $2,500 to $3,700
• Opening Package (including Equipment and Supplies), Decor, Cabinets, Point-of-Sale System, and Smallwares:  $150,114 to $220,448
• Miscellaneous Development Service Fees:  $0 to $1,270
• Inventory:  $5,000 to $7,000
• Initial Marketing Fees and Expenses – 6 Months:  $15,000
• Franchise Premises Rent – 3 Months:  $9,000 to $11,700
• Materials and Supplies:  $500 to $2,000
• Operations In-Store Training, Enterprise Solution Training, and Foundations Class:  $0 to $750
• Travel and Living Expenses for In-Store Compatibility Check, Operations In-Store Training, Enterprise Solutions Training, and Foundations Class:  $1,180 to $9,305
• Employee Training:  $500 to $1,500
• Insurance – 3 Months:  $375 to $1,175
• Bookkeeping/Payroll Service – 3 Months:  $825 to $1,800
• Additional Funds, Working Capital, and Miscellaneous Expenses – 3 Months:  $10,000 to $50,000
• Total Estimated Papa Murphy’s Franchise Costs:  $367,244 to $670,498

Section II – Papa Murphy’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial or Subsequent Franchise Fee:  $15,000 to $25,000
• 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

Section III – Number of Franchised and Company-Owned Papa Murphy’s Outlets

Franchised

2021

• Outlets at the Start of the Year:  1,231
• Outlets at the End of the Year:  1,212
• Net Change:  -19

2022

• Outlets at the Start of the Year:  1,212
• Outlets at the End of the Year:  1,145
• Net Change:  -67

2023

• Outlets at the Start of the Year:  1,145
• Outlets at the End of the Year:  1,119
• Net Change:  -26

Company-Owned

2021

• Outlets at the Start of the Year:  58
• Outlets at the End of the Year:  27
• Net Change:  -31

2022

• Outlets at the Start of the Year:  27
• Outlets at the End of the Year:  23
• Net Change:  -4

2023

• Outlets at the Start of the Year:  23
• Outlets at the End of the Year:  8
• Net Change:  -15

Section IV – News Updates on the Papa Murphy’s Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Papa Murphy’s Franchise (Item 19, 2024 FDD)

Franchise Store Performance

• As of September 25, 2023, there were 1,085 domestic franchise-owned Papa Murphy’s Take ‘N’ Bake Pizza stores open. As of September 26, 2022, there were 1,102 domestic franchise-owned Papa Murphy’s Take ‘N’ Bake Pizza stores open. As of September 27, 2021, there were 1,121 domestic franchise-owned Papa Murphy’s Take ‘N’ Bake Pizza stores open.

• The statements in this Franchise Store Performance section are based on information reported by:

• (i) the 1,085 domestic franchised-owned Papa Murphy’s Take ‘N’ Bake Pizza stores that were open and operating for all of the trailing 52 weeks ending on September 25, 2023 (collectively referred to herein as “2023 Franchise Stores”). All 1,085 2023 Franchise Stores offer substantially the same menu and product mix that your Franchised Store will offer; and

• (ii) the 1,102 domestic franchise-owned Papa Murphy’s Take ‘N’ Bake Pizza stores that were open and operating for all of the trailing 52 weeks ending on September 26, 2022 (collectively referred to herein as “2022 Franchise Stores”). All 1,102 2022 Franchise Stores offer substantially the same menu and product mix that your Franchised Store will offer; and

• (iii) the 1,121 domestic franchise-owned Papa Murphy’s Take ‘N’ Bake Pizza stores that were open and operating for all of the trailing 52 weeks ending on September 27, 2021 (collectively referred to herein as “2021 Franchise Stores”). All 1,121 2021 Franchise Stores offer substantially the same menu and product mix that your Franchised Store will offer.

Part 1 – All Franchise Stores

2023

• Number of Franchised Stores:  1,085
• Highest Net Sales:  $2,494,897
• Lowest Net Sales:  $186,428
• Average Net Sales:  $680,607
• Number of Stores Exceeding Average Net Sales:  438
• Percentage of Stores Exceeding Average Net Sales:  40.4%
• Median Net Sales:  $612,750
• Average Net Sales of Highest 10% (108 Stores):  $1,389,069
• Average Net Sales of Lowest 10% (108 Stores):  $288,383

2022

• Number of Franchised Stores:  1,102
• Highest Net Sales:  $2,462,983
• Lowest Net Sales:  $132,039
• Average Net Sales:  $666,663
• Number of Stores Exceeding Average Net Sales:  447
• Percentage of Stores Exceeding Average Net Sales:  40.6%
• Median Net Sales:  $593,609
• Average Net Sales of Highest 10% (110 Stores):  $1,384,276
• Average Net Sales of Lowest 10% (110 Stores):  $273,615

2021

• Number of Franchised Stores:  1,121
• Highest Net Sales:  $2,502,426
• Lowest Net Sales:  $145,370
• Average Net Sales:  $661,658
• Number of Stores Exceeding Average Net Sales:  454
• Percentage of Stores Exceeding Average Net Sales:  40.5%
• Median Net Sales:  $583,674
• Average Net Sales of Highest 10% (112 Stores):  $1,385,420
• Average Net Sales of Lowest 10% (112 Stores):  $276,614

Part 2 – Franchise Stores – West

• Franchise Stores – West include stores located in Alaska, California, Hawaii, Idaho, Nevada, Oregon, and Washington.

2023

• Number of Franchised Stores:  442
• Highest Net Sales:  $2,494,897
• Lowest Net Sales:  $206,703
• Average Net Sales:  $843,149
• Number of Stores Exceeding Average Net Sales:  188
• Percentage of Stores Exceeding Average Net Sales:  42.5%
• Median Net Sales:  $774,196
• Average Net Sales of Highest 10% (44 Stores):  $1,630,717
• Average Net Sales of Lowest 10% (44 Stores):  $363,213

2022

• Number of Franchised Stores:  450
• Highest Net Sales:  $2,462,983
• Lowest Net Sales:  $142,287
• Average Net Sales:  $846,929
• Number of Stores Exceeding Average Net Sales:  195
• Percentage of Stores Exceeding Average Net Sales:  43.3%
• Median Net Sales:  $789,676
• Average Net Sales of Highest 10% (45 Stores):  $1,622,224
• Average Net Sales of Lowest 10% (45 Stores):  $338,044

2021

• Number of Franchised Stores:  445
• Highest Net Sales:  $2,502,426
• Lowest Net Sales:  $165,935
• Average Net Sales:  $847,082
• Number of Stores Exceeding Average Net Sales:  198
• Percentage of Stores Exceeding Average Net Sales:  44.5%
• Median Net Sales:  $777,974
• Average Net Sales of Highest 10% (44 Stores):  $1,629,297
• Average Net Sales of Lowest 10% (44 Stores):  $334,707

Part 3 – Franchise Stores – Central

• Franchise Stores – Central include stores located in Arizona, Colorado, Kansas, Louisiana, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas, Utah, and Wyoming.

2023

• Number of Franchised Stores:  399
• Highest Net Sales:  $1,538,697
• Lowest Net Sales:  $188,911
• Average Net Sales:  $636,605
• Number of Stores Exceeding Average Net Sales:  171
• Percentage of Stores Exceeding Average Net Sales:  42.9%
• Median Net Sales:  $591,005
• Average Net Sales of Highest 10% (39 Stores):  $1,138,194
• Average Net Sales of Lowest 10% (39 Stores):  $314,669

2022

• Number of Franchised Stores:  399
• Highest Net Sales:  $1,454,038
• Lowest Net Sales:  $132,039
• Average Net Sales:  $601,171
• Number of Stores Exceeding Average Net Sales:  169
• Percentage of Stores Exceeding Average Net Sales:  42.4%
• Median Net Sales:  $546,584
• Average Net Sales of Highest 10% (39 Stores):  $1,078,308
• Average Net Sales of Lowest 10% (39 Stores):  $291,591

2021

• Number of Franchised Stores:  413
• Highest Net Sales:  $1,498,757
• Lowest Net Sales:  $145,370
• Average Net Sales:  $592,975
• Number of Stores Exceeding Average Net Sales:  172
• Percentage of Stores Exceeding Average Net Sales:  41.6%
• Median Net Sales:  $534,787
• Average Net Sales of Highest 10% (41 Stores):  $1,078,139
• Average Net Sales of Lowest 10% (41 Stores):  $286,690

Part 4 – Franchise Stores – East

• Franchise Stores – East include stores located in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Michigan, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Virginia, and Wisconsin.

2023

• Number of Franchised Stores:  244
• Highest Net Sales:  $959,846
• Lowest Net Sales:  $186,428
• Average Net Sales:  $458,119
• Number of Stores Exceeding Average Net Sales:  105
• Percentage of Stores Exceeding Average Net Sales:  43.0%
• Median Net Sales:  $432,789
• Average Net Sales of Highest 10% (24 Stores):  $787,034
• Average Net Sales of Lowest 10% (24 Stores):  $229,227

2022

• Number of Franchised Stores:  253
• Highest Net Sales:  $1,099,624
• Lowest Net Sales:  $136,163
• Average Net Sales:  $449,317
• Number of Stores Exceeding Average Net Sales:  111
• Percentage of Stores Exceeding Average Net Sales:  43.9%
• Median Net Sales:  $429,538
• Average Net Sales of Highest 10% (25 Stores):  $770,565
• Average Net Sales of Lowest 10% (25 Stores):  $217,921

2021

• Number of Franchised Stores:  263
• Highest Net Sales:  $1,032,667
• Lowest Net Sales:  $160,624
• Average Net Sales:  $455,773
• Number of Stores Exceeding Average Net Sales:  115
• Percentage of Stores Exceeding Average Net Sales:  43.7%
• Median Net Sales:  $440,725
• Average Net Sales of Highest 10% (26 Stores):  $765,266
• Average Net Sales of Lowest 10% (26 Stores):  $226,895

• Some Papa Murphy’s Take ‘N’ Bake Stores have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.

Section VI – Papa Murphy’s Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️