Papa Murphy's Take 'N' Bake Pizza Franchise Costs, Fees & FDD

Year Business Began: 1981

Franchising Since: 1982

Headquarters: Vancouver, Washington

Estimated Number of Units: 1,080

Franchise Description: Papa Murphy’s International LLC is the franchisor. The franchisor is a subsidiary of MTY Food Group Inc. Franchisees operate a Papa Murphy's retail food outlet currently featuring take and bake pizza, salads, desserts and other related products. Papa Murphy’s customers create their fresh, personally customized pizza; take their fresh pizza home; and bake their pizza fresh in their ovens, at their convenience. Along with fresh pizzas, Papa Murphy’s offers hand-crafted salads, sides, and desserts to complete the meal.
Training Overview: The franchisor will provide a training and familiarization program. The training program must be completed by at least one individual that has signed the Franchise Agreement. The Operations In-Store Training, Enterprise Solution Training, and Foundations Class are included in the Franchise Fee for up to two individuals that have signed the Franchise Agreement. The Operations In-Store Training, and Enterprise Solution Training are held at designated Papa Murphy’s training stores. In most instances, travel to the training store will be required. Foundations Class is held virtually. The franchisor will periodically provide refresher training programs, seminars or regional meetings. The franchisor may require that franchisees or their managers attend and complete them to its satisfaction. The franchisor will also hold a convention or regional meetings periodically for the franchisees that make up its franchise system.

Territory Granted: Franchisees will be given a specific location within which they will operate the franchised store. Franchisees will not receive an exclusive territory. In determining whether to approve the site franchisees select, the franchisor may consider its market analysis, market penetration plans, franchise placement strategies, and prior franchise commitments.

Obligations and Restrictions: Franchisees, or their approved operations personnel, must personally oversee and manage the actual day-to-day operation of the franchised store, except as the franchisor may agree in writing for good cause. Managers employed to help to operate the franchised store must successfully complete the mandatory training program. Franchisees may sell, serve or distribute only those Papa Murphy's products, services and other items at the franchised store, which have been approved. Franchisees must offer all Papa Murphy’s products, services and other items that have been designated as required by the franchisor for its franchisees. Franchisees must make all menu items in strict compliance with the franchisor’s specifications, recipes and requirements.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees wish to do so, and they satisfy the required pre-conditions to renewal, the franchisor will offer franchisees the right to obtain an additional five-year term.

Financial Assistance: The franchisor does not assist in providing financing for franchisees. The franchisor does not currently guarantee any notes or financial obligations franchisees may incur in setting up and operating their franchise. The franchisor may use its creditworthiness with vendors to leverage better payment terms with these vendors for franchisees. The franchisor currently is offering incentive programs to active military personnel and veterans, law enforcement officers, medical doctors, nurses, emergency medical technicians and fire fighters who meet the other qualifications.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$15,000	$25,000
Lease and Utilities Deposits and Payments	$3,000	$7,500
Leasehold Improvements	$139,000	$278,000
Signs	$9,000	$25,000
Stamped Architectural Drawings	$7,850	$9,350
As Built Surveys	$2,800	$4,100
Opening Package (including equipment and supplies), Decor, Cabinets, Point-of Sale System and Smallwares	$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	$15,000
Franchise Premises Rent – 3 months	$7,284	$17,374
Materials and Supplies	$500	$2,000
Operations In-Store Training, Enterprise Solution Training and Foundations Class	$0	$750
Travel and Living Expenses for In-Store Compatibility Check, Operations In-Store Training, Enterprise Solutions Training and Foundations Class	$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 Expenses – 3 months	$10,000	$50,000
ESTIMATED TOTAL	$367,428	$733,124

Other Fees

Type of Fee	Amount
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.
Online Ordering Fee	$0.35 per online transaction.
Marketing Kits	$45 to $500
Customer Relations Management	$10 per month.
Loyalty Program	$53 per month.
Gift Card Redemption Fee	6.06% to 13.63% of the total amount of the gift card redemption.
Food Service Incident Management	$3 per month.
Audit	The costs of conducting an audit, plus related expenses.
Insurance	The franchisee’s insurance must include at a minimum comprehensive general liability coverage, including products liability coverage, in amount of at least $2,000,000 per occurrence and business automobile liability insurance in an amount of at least $1,000,000 per occurrence. The franchisee must name the franchisor as an additional insured.
Transfer Fee	Depends on type of transfer.
Indemnification	Varies.
Additional Assistance or Training	$100 to $300 per day.
Franchise Conventions	$1,000 to $3,500
Convention Materials	Up to $500.
Successive Franchise Fee	One-half of the then-current franchise fee.
Relocation Fee	$5,000
Non-Participation Fee	$100 per day if franchisees fail or refuse to participate in any required national, local, regional, seasonal, promotional or other program, initiative and campaign or in any new or modified product or service test or offering.
Document Administration Fee	$500
Interest	Interest of 1.5% per month unless otherwise limited by law (18% per annum).
Bookkeeping/ Payroll Service	$0 to $630
Non-sufficient Funds Fees	$35, plus reimbursement of fees incurred by the franchisor.
POS Change of Ownership Fee	$500
Software License Transfer Fee	$300
Online Ordering Transfer Fee	$100
Store Solutions Team Support	$51.25 monthly.
Core Software Support and Maintenance	$114 per month.
Late Payment Fee	$75
Managed Firewall Service	$30 to $90 per month.
Business Class High Speed lnternet Access	$50 to $200 per month.
Secure Payment Gateway	$11 per month.
Upgrade, Refurbish and Replace	$4,000 to $50,000
Expenses in Evaluating a Supplier Proposed by Franchisees	Franchisor’s reasonable expenses.
Step-In Costs	Personnel and administrative costs, plus 15%.
Early Termination Damages	The average monthly royalty fee and brand marketing fee paid for any consecutive 12-month period within the preceding 48-month period, multiplied by the number of months remaining in the term of the Franchise Agreement, and the product is divided by 2.
Extension Fee	$2,500

The above information has been compiled from the FDD of Papa Murphy's. Year of FDD: 2025.
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