Cost to Start a Papa Murphy's Franchise in 2026

Per the current FDD, total estimated initial investment for a Papa Murphy's franchise runs $298,000–$543,000. The take-and-bake model reduces equipment costs versus conventional pizza franchises, but leasehold improvements and the franchise fee remain significant contributors:

• Franchise fee: $25,000
• Leasehold improvements and construction: $120,000–$250,000
• Equipment and fixtures (no oven): $50,000–$100,000 (prep tables, refrigeration, slicers, POS)
• Signage: $15,000–$35,000
• Technology (POS, online ordering integration): $8,000–$18,000
• Initial inventory (dough, toppings, packaging): $5,000–$12,000
• Training and travel: $5,000–$10,000
• Insurance: $5,000–$12,000
• Marketing and grand opening: $10,000–$25,000
• Working capital: $20,000–$40,000
• Miscellaneous and professional fees: $10,000–$20,000

Papa Murphy's requires prospective franchisees to demonstrate a minimum net worth of $300,000 and liquid capital of at least $80,000. These thresholds reflect the brand's sub-$550K investment ceiling and the reality that franchisees need financial cushion beyond the initial investment to survive the ramp-up period. Papa Murphy's evaluates candidates on food service or retail management experience, customer service orientation, and community presence. Multi-unit development agreements are available for qualified operators.

Papa Murphy's is on the SBA Franchise Directory. The take-and-bake model creates a carry-out-only revenue profile — no dine-in revenue and no in-store oven. Lenders adjust their DSCR analysis accordingly. Key underwriting factors:

• Carry-out-only DSCR: No dine-in revenue means Papa Murphy's per-location AUV runs below full-service pizza concepts. Lenders benchmark projections against FDD Item 19 territory AUV data. The absence of a commercial pizza oven lowers total investment — but also means equipment collateral is thinner than a full-service QSR build.
• Combined fee load analysis: Papa Murphy's 5% royalty + 4% ad fee = 9% of net sales in ongoing fees. On a location generating $500K in annual net sales, that's $45K/year off the top before rent, labor, and debt service. Lenders stress-test whether the remaining margin supports a 1.15× DSCR on the full SBA loan.
• Equity injection: SBA requires 10% minimum; lenders want 20–25% — approximately $60K–$136K in documented borrower funds for a $298K–$543K Papa Murphy's build. Papa Murphy's $80K+ liquid capital requirement approaches the SBA floor; lenders may require more for higher-investment builds.
• Refrigeration and prep equipment as collateral: Without a commercial pizza oven, the major equipment assets are refrigeration cases and prep tables. Lenders include these in collateral analysis, though equipment values depreciate quickly in food service use.
• Location visibility and lease terms: Take-and-bake success depends on suburban residential proximity and strong carry-out traffic patterns. Lenders evaluate the lease terms — ideally a 10-year initial term aligned to SBA loan maturity — and assess location demographics against comparable territory performance.