Papa Murphy's take-and-bake model runs $367K–$702K — lower equipment requirements than baked-in-store pizza chains. SBA 7(a) is the primary financing vehicle. Here's how lenders approach the deal.
Papa Murphys financing snapshot
SBA Franchise Directory
Listed
Loan programs typically used
SBA 7(a), SBA 504, Equipment financing
Total investment
$367,000–$702,000
Minimum equity injection
10%–20%
Minimum DSCR
1.15x
Typical timeline to funding
60–90 days
Source: Papa Murphys Franchise Disclosure Document (FDD) + published franchisee financing guidance · as of 2026-07-25. Figures vary by lender, market, and individual borrower profile; verify current terms with your funding partner before applying.
Key takeaways
Total investment: $367K–$702K — lower than most comparable pizza QSR brands due to take-and-bake model
Papa Murphy's is on the SBA Franchise Directory — SBA 7(a) covers the financed portion up to $5M
No on-site baking means lower equipment costs (no conveyor ovens) and reduced utility overhead
SBA 504 applies when the franchisee acquires real estate as owner-occupied commercial property
Equipment financing can be layered for refrigeration, prep equipment, and POS systems
Typical lender timeline: 60–90 days from completed application to funding
1 Papa Murphy's total investment + what lenders look at
Per the current FDD, total estimated initial investment runs $367K–$702K depending on unit type, geography, and lease vs. owned real estate. Lenders evaluate the following when underwriting a Papa Murphy's deal:
Equity injection: SBA minimum 10–20% of project cost in non-borrowed liquid cash.
Trade area demographics: Household income, family size, and grocery-store proximity are key demand drivers for a take-and-bake concept.
Operational experience: Food service or retail management experience is preferred — Papa Murphy's training program covers the model.
DSCR (acquisition): Trailing 12-month revenue with a 1.25x DSCR or better for existing unit purchases.
Personal credit: 680+ personal FICO is a common SBA lender threshold for franchise deals.
2 SBA 7(a) for Papa Murphy's franchises
The SBA 7(a) loan program is the primary financing vehicle for Papa Murphy's franchise acquisitions. Papa Murphy's listing on the SBA Franchise Directory allows lenders to bypass independent franchise agreement review — shortening timelines by 2–4 weeks. Key parameters:
Maximum loan amount: $5M — well above any single-unit Papa Murphy's deal
Terms: Up to 10 years for equipment and working capital; up to 25 years when real estate is included
Rate: Prime + 3.0% for loans over $350K (variable); fixed-rate options vary by lender
Use of proceeds: Franchise fee, leasehold improvements, refrigeration and prep equipment, working capital
What it does NOT cover: The equity injection — that must come from borrower's own liquid assets
3 SBA 504 for real estate and build-out
The SBA 504 program applies when a franchisee acquires freestanding real estate as owner-occupied commercial property. Structure: 50% conventional bank loan + 40% SBA 504 debenture (long-term fixed rate) + 10% borrower equity. Papa Murphy's inline or strip-center format means most operators lease rather than own — 504 is most applicable to the subset of franchisees acquiring freestanding or end-cap properties.
4 Equipment financing for Papa Murphy's
Refrigeration units, dough prep tables, display cases, and POS systems are Papa Murphy's primary equipment line items — considerably lower in capital cost than conveyor oven packages required by baked-in-store pizza franchises. These can be financed separately via equipment loans or leases layered on top of the SBA 7(a). Equipment loans typically run 3–7 year terms, collateralized by the equipment itself.
5 Franchisor financing programs
Papa Murphy's (MTY Food Group) does not operate a direct in-house lending program for franchisees. Papa Murphy's preferred vendor and lender relationships mean the company can facilitate introductions to lenders experienced with the take-and-bake model. Operational support programs and territory development structures vary; the FDD is the authoritative source for current franchisor obligations and any incentive programs available at the time of signing.
6 Down payment and liquidity requirements
Specific Papa Murphy's financial qualification thresholds are disclosed in the current FDD — review Item 7 with your lender before applying. As a planning benchmark: on a $500K total project, the SBA equity injection requirement is $50K–$100K from liquid funds. Papa Murphy's $367K–$702K investment range, combined with the lower equipment burden, makes it one of the more accessible national pizza franchise systems from a capital standpoint.
7 Timeline to funding
1
Pre-qualification
Lender reviews financial statements, Papa Murphy's approval letter, and FDD. 1–2 weeks.
2
SBA package
Full SBA application: SBA Form 413, 3 years tax returns, business plan, site lease. 2–3 weeks.
3
SBA approval
SBA review and conditional commitment. 3–6 weeks depending on lender's Preferred Lender (PLP) status.
4
Closing and funding
Title, legal, and closing. 2–3 weeks post-commitment. Total: 60–90 days from complete application.
8 What lenders look for in a Papa Murphy's franchise application
Papa Murphy's is on the SBA Franchise Directory at $367K–$702K. The take-and-bake model (no on-site baking) produces a meaningfully different underwriting profile than baked-in-store pizza concepts — lower equipment cost, lower utility overhead, carryout-only revenue structure. Lenders evaluate:
Debt service coverage ratio (DSCR): SBA minimum 1.15×; lenders underwriting take-and-bake pizza concepts want 1.25×+. Without delivery revenue or dine-in traffic, the revenue model is carryout-only — lenders model AUV from FDD Item 19 and apply conservative ramp multipliers for year one and two.
Equity injection: SBA minimum 10–20% of project cost from documented borrower liquid funds. At $367K–$702K, that is $37K–$140K. The take-and-bake format's lower equipment cost (no conveyor ovens) means the total capital requirement is lower than most pizza QSR peers at comparable unit economics.
MTY Food Group parent structure: Papa Murphy's is owned by MTY Food Group, a Canadian franchising corporation. Lenders familiar with the brand know the ownership structure — the FDD should be reviewed for any structural provisions related to the parent company before submitting the SBA application.
Refrigeration and display collateral: Refrigeration units and display cases are Papa Murphy's primary equipment and hold moderate collateral value at a 50–60% advance rate — meaningfully better than brand-specific pizza oven equipment, which is difficult to repurpose outside the specific concept.
Trade area demographics: Take-and-bake is a grocery-adjacent business. Lenders evaluate proximity to grocery stores (primary competition for prepared food spend) and household income and family-size demographics in the target trade area — the concept skews toward family households.
9 Apply with ClearValue Lending
ClearValue Lending works with franchise operators at every stage — from first-unit acquisition to multi-unit expansion financing. Start at small business financing or apply directly at Find my match. Your file routes to the funding partners in our network best matched to your file. Related: SBA 7(a) loans explained · SBA 504 loan explained.
Sources
Papa Murphy's is listed on the SBA Franchise Directory, making it eligible for expedited SBA 7(a) franchisor review. — SBA Franchise Directory
SBA 7(a) loans provide up to $5M for eligible franchise startup and acquisition costs, with terms up to 25 years when real estate is included. — SBA 7(a) Loan Program
SBA 504 loans finance owner-occupied commercial real estate with a long-term fixed-rate debenture — applicable to franchise real estate acquisitions. — SBA 504 Loan Program
The Fed Small Business Credit Survey finds bank loans and SBA-guaranteed financing remain the primary credit sources QSR/food-service small employer firms use to fund franchise startup and acquisition costs. — Federal Reserve — Small Business Credit Survey
Frequently asked questions
Can I use an SBA loan to finance a Papa Murphy's franchise?
Yes. Papa Murphy's is on the SBA Franchise Directory, allowing lenders to skip independent franchise agreement review. SBA 7(a) can finance the portion above your equity injection, up to $5M.
How much cash do I need to open a Papa Murphy's franchise?
Plan for a 10–20% SBA equity injection on the financed portion plus a working capital reserve. Specific thresholds are in the FDD — review Item 7 with your lender. Papa Murphy's $367K–$702K range is accessible relative to most national pizza QSR brands.
Why does Papa Murphy's have lower equipment costs than other pizza franchises?
The take-and-bake model eliminates the need for commercial conveyor pizza ovens, which are among the highest-cost equipment items for traditional pizza QSR franchises. Refrigeration and prep equipment replace the oven line, reducing both capital cost and energy overhead.
What credit score do I need for a Papa Murphy's franchise loan?
Most SBA lenders require 680+ personal FICO for franchise deals. Papa Murphy's mid-range investment means total loan sizes are manageable — some lenders have flexibility on compensating factors at this investment level.
How long does financing take for a Papa Murphy's franchise?
Expect 60–90 days from a completed SBA application to funding. SBA Preferred Lenders can issue conditional commitments in 3–4 weeks. Coordinate Papa Murphy's franchise approval in parallel to avoid sequencing delays.
Summary:
Papa Murphy's take-and-bake model runs $367K–$702K — lower equipment requirements than baked-in-store pizza chains. SBA 7(a) is the primary financing vehicle. Here's how lenders approach the deal.
This article is for educational purposes and is not financial, legal, or tax advice. Rates,
fees, qualification requirements, and product availability are illustrative ranges that vary
by lender, market conditions, and individual business profile. ClearValue Lending is a
funding platform; all financing is subject to lender partner approval and terms. Always read
your contract end-to-end and verify specific numbers before signing.
