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 Murphy's is the largest take-and-bake pizza chain in the United States, with over 1,000 locations. Customers purchase freshly assembled, unbaked pizzas and bake them at home — eliminating the need for commercial conveyor ovens and reducing utility overhead compared to baked-in-store competitors. Papa Murphy's is owned by MTY Food Group. Its lower equipment intensity is a meaningful differentiator for lenders and prospective franchisees. This guide covers financing mechanics only. For a startup cost breakdown, see the companion cost-to-start guide.
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:
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:
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.
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.
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.
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.
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:
Papa Murphy's lower equipment intensity — no conveyor ovens — makes the SBA 7(a) structure more straightforward than most pizza QSR deals. Better collateral quality per dollar of financed equipment improves the overall deal structure. For builds at the lower end of the range ($367K–$450K), SBA Express eligibility may apply, reducing the conditional commitment timeline to 36 hours. Review SBA 7(a) loan terms for current structure requirements.
ClearValue Lending works with franchise operators at every stage — from first-unit acquisition to multi-unit expansion financing. Apply at Find my match. Your file routes to one matched lender in our network. Related: SBA 7(a) loans explained · SBA 504 loan explained.
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.
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.
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.
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.
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.