Papa Murphy's franchise startup costs run $298K–$543K for a take-and-bake pizza concept. The no-in-store-oven model means lower equipment costs and a simpler build-out than full-service pizza. Papa Murphy's operates 1,300+ locations across 35+ states.
Papa Murphy's is the largest take-and-bake pizza franchise in the United States, founded in 1995 through the merger of Papa Aldo's and Murphy's Pizza. As of 2026, Papa Murphy's operates more than 1,300 locations in 35+ states. The brand's core differentiator is its take-and-bake model: customers purchase fresh, unbaked pizzas assembled in-store and bake them at home. Because there is no in-store oven required, Papa Murphy's locations have significantly lower equipment costs, smaller footprints, and reduced ventilation requirements compared to full-service pizza concepts. The model also eliminates delivery infrastructure and the associated labor costs of driver management. Papa Murphy's is owned by MTY Food Group, a Canadian multi-brand franchisor. The franchise appeals to prospective owners who want a lower-capital entry into the QSR pizza segment without the full complexity of a dine-in or delivery-heavy operation.
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:
Papa Murphy's charges a 5% royalty on net sales plus a 4% advertising fund contribution, for a combined 9% of net sales. The advertising fund supports national brand campaigns, digital ordering platform development, and local marketing programs. Papa Murphy's has invested in online ordering and loyalty program infrastructure, which is supported in part by advertising fund contributions. The 5% royalty is competitive within the pizza franchise segment.
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 listed on the SBA Franchise Directory, qualifying franchisees for expedited SBA loan processing. Common financing paths:
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:
The absence of a commercial pizza oven at Papa Murphy's reduces both total investment and equipment collateral relative to a full-service QSR. An SBA 7(a) loan at $298K–$543K at this investment level is achievable, but lenders will focus underwriting attention on the carry-out-only revenue model. Present FDD Item 19 comparable territory AUV data prominently in your application. Source: SBA SOP 50 10 7.
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Per the current FDD, total estimated initial investment runs $298,000–$543,000. The take-and-bake model reduces equipment costs by eliminating the in-store oven, but leasehold improvements and the franchise fee remain the largest cost components.
Papa Murphy's take-and-bake model means customers purchase fresh, unbaked pizza assembled in-store and bake it at home. This eliminates the commercial pizza oven, reducing equipment costs, ventilation requirements, and the complexity of managing hot-food production in-store.
Papa Murphy's charges a 5% royalty on net sales plus a 4% advertising fund contribution, for a combined 9% of net sales.
Papa Murphy's lower investment floor ($298K) vs. full-service pizza concepts is driven primarily by the absence of a commercial pizza oven and the smaller footprint of take-and-bake locations. However, Papa Murphy's also has no dine-in revenue and depends entirely on carry-out, which caps per-transaction revenue relative to full-service concepts.
Yes. Papa Murphy's is on the SBA Franchise Directory. SBA 7(a) covers franchise fee, leasehold improvements, equipment, and working capital. Equipment financing can supplement for refrigeration and prep equipment.
SBA guidelines require a minimum DSCR of 1.15×. On a 10-year SBA 7(a) loan at Papa Murphy's $298K–$543K investment range, monthly debt service runs approximately $3,100–$5,600. A location generating $450K–$700K+ in annual net sales at typical take-and-bake pizza margins must produce enough net operating income after the combined 9% fee load, rent, and labor to clear 1.15×. Conservative FDD Item 19 territory AUV benchmarks are the credible anchor. Source: SBA SOP 50 10 7 (sba.gov).
SBA requires a minimum 10% equity injection. Lenders typically want 20–25% of total project cost — approximately $60K–$136K in documented borrower funds for a $298K–$543K Papa Murphy's build. Papa Murphy's $80K+ liquid capital requirement covers the SBA floor for lower-investment builds but may fall short for higher-end locations. Source: SBA SOP 50 10 7, Subpart B, Chapter 4.