Papa Murphy's Take 'N' Bake Pizza
Date of Incorporation: November 1995
Franchising Since: November 1995
Headquarters: Washington
Country: U.S.
Description: A Papa Murphy's retail food outlet is featuring take-and-bake pizza, fresh calzones, lasagnas and other related products.
Franchise Offer: Papa Murphy's Franchised Stores feature prepared take-and-bake pizza, fresh calzones, lasagnas and related products, and approved menu may be expanded to include other food products. Papa Murphy's customers are the general public, and Papa Murphy's products are likely to be sold primarily to persons seeking a fresh meal that can be served at home. The pizzas and pastas are prepared fresh each day entirely within the Franchised Stores and sold uncooked for customer preparation at home.
Financial Assistance: The franchisor does not provide direct or indirect financing and does not assist in providing financing. The franchisor does not guarantee any notes or financial obligations in setting up and operating franchise.
Training and Assistance: The franchisor will provide six phase training and familiarization program before the opening of franchised store. The training program consists of the described training materials, selling aids, and professional consultation. Training will cover pizza and pasta recipes, product preparation and presentation, employee guidelines, customer relations, general business operations, retail sales practices, franchise systems management, bookkeeping and financial management, inventory control and purchasing, security practices, equipment operations, increasing sales at the location and assisting in creating relationships with customers. The training program is included in the Initial Franchise Fee. Accommodations, travel, room, board, and wage expenses during this period are borne by franchisee.
Territory: The franchisee will be given a specific location within which he will operate the franchised store. The franchisee is not granted an exclusive or protected territory.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years. Renewal or extension of the term is for successive additional periods of 5 five years each under the terms of the then current Franchise Agreement; or shorter if under a Non-Traditional Shop Agreement, subject to a sublease or master lease.
Obligations and Restrictions: The franchisee must participate fully in the actual day to day operation of franchised store. Managers employed to help to operate the franchised store must successfully complete the mandatory training program.
Total Number of Units: Over 1,200 units
Investment Tables:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $15,000 | $25,000 |
| Lease and Utilities Deposits and Payments | $2,500 | $6,000 |
| Leasehold Improvements, Cabinets, Decor | $44,000 | $103,000 |
| Signs | $5,000 | $10,000 |
| Architectural Drawings | $2,500 | $4,200 |
| Franchise Premises Rent | $1,400 | $4,000 |
| Opening Package (including Equipment and Supplies) | $61,000 | $115,000 |
| Inventory | $5,000 | $7,000 |
| Initial Advertising Fees and Expenses | $20,000 | $25,000 |
| Materials and Supplies | $500 | $2,000 |
| Travel and living expenses while training | $1,280 | $17,750 |
| Employee Training | $500 | $1,500 |
| Insurance | $375 | $1,175 |
| Bookkeeping and payroll service | $1,500 | $1,600 |
| Additional Funds: Working Capital, and Miscellaneous Expenses | $10,000 | $20,000 |
| TOTAL | $171,655 | $353,225 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Continuing Services and Royalty Fee | 5% of weekly Gross Revenue |
| Advertising Fee | Up to 2% of weekly net sales |
| Local Advertising and Promotion and Regional Cooperative Advertising | The greater of 5% of Gross Revenue or $500 during each four-week period |
| Customer relations manager | $35 per month for up to 50 telephone surveys; $.49 per survey coverage period |
| Audit | Expenses in conducting audit, plus related expenses |
| Insurance | Insurance must include at minimum comprehensive general liability coverage, including products liability coverage, in amount of at least $2,000,000. |
| Transfer | If the transferee is an existing franchisee, the transfer fee will be $15,000 less $1,500 times the number of full years remaining on the Initial Term of the Franchise Agreement; If it is the transferee’s first franchised store, the transfer fee will be $25,000 less $2,500 times the number of full years remaining on the initial term of the franchise agreement; |
| Indemnification | Varies |
| Additional Assistance or Training | $100-$300 per day |
| Sucessive franchise fee | $7,500 |
| Franchise Conventions | $1,000 to $3,500 |
| Convention Materials | Up to $500 |
| Renewal Franchise Fee | $5,000 |
| Interest and late charges | Interest of 1.5% per month unless otherwise limited by law. |
| Bookkeeping/ payroll service | $0 - $500 |
| Loss of Manual - Replacement Fee | $1,000 |
| Equipment and Computer Updates, Remodeling | $0 to $25,000 annually |
| Point-of-sale system software enhancement maintenance | $340 per day |
| Help desk support | $0 - $1,275 |
| Business broadband | $100- $200 per month |
| Refurbish and replace | $4,000 - $25,000 |
| Expenses in evaluating a supplier proposed by the franchisee | Reasonable expenses |
| Step-in costs | Personnel and administrative costs, plus 15% |
Date of FDD: 2009
The above information has been taken from the UFOC/FDD and online sources of Papa Murphy's Take 'N' Bake Pizza.
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