Papa Murphy’s Franchise Cost, Profit, Failure Rate 2024

If you’re looking to start a business that can make good money, consider buying a Papa Murphy’s pizza franchise.

As the fifth-largest pizza franchise in the world, Papa Murphy’s has established itself as one of the must-own franchises of 2024.

Offering tasty pizza, dessert, and more, this franchise could be your opportunity to enter a lucrative market.

Papa Murphy is one of the Best franchises of 2024 that you must own.

Keep reading to discover everything you need to know about owning a Papa Murphy’s franchise and why it might be the perfect business opportunity for you.

Papa  Murphy's Franchise

About Papa Murphy’s

Papa Murphy’s serves good and high-quality products. They have dairy-free products that are plant-based and lactose-free. Their dairy-free cheese makes very cheesy pizza. You can even have your pizza made just how you like it.

History Of Papa Murphy’s

Papa Murphy’s began as Papa Aldo’s in Hillsboro in 1981. Two years later, they began offering franchises. In 1995, Murphy Pizza and Papa Aldo combined names to become Papa Murphy’s.

Today, Papa Murphy’s has more than 1300 locations across the USA, Canada, and UAE. They have won awards for the best pizza chain in 2001, 2006, 2008, and 2009.

Papa Murphy’s Franchise Model

Cost or FeeAmount or Percentage
Initial Investment to Open a Franchise$308,469 – $557,879
Franchise Fee$25,000
Royalty Fee (5% of weekly Net Sales)5%
Brand Marketing Fee (2% of weekly Net Sales)2%
Local Marketing & Promotion (Min of 5% or $2,000)Greater of 5% of Net Sales or $2,000/month
Total Outlets1300

Training & Support Of Papa Murphy’s

Training & Support Of Papa Murphy's

Papa Murphy’s gives a training program for those who sign the franchise contract. There are different types of training, like checking the store, learning about business, and classes.

The foundation class is held either virtually or at Papa Murphy’s support Centre in Vancouver, Washington.

Franchisees must pay for the training of two people who have signed the agreement. Other meetings and training sessions are given for the staff too.

Term And Renewal Of The Agreement

The franchise agreement lasts for ten years. The franchisor can renew for another 5-year term if they wish, and if the business is doing well.

How Much Does Papa Murphy’s Franchise Make?

As per the performance of Papa Murphy’s franchised stores in 2020, we can say that they generate average net sales $615,496 in a year.

And if we consider a profit margin of 10%, as per the industry average, then we can say that a Papa Murphy’s franchise owner make $61,549.60 in annual net profits on average.

This is how we calculated this amount:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%615496.00
Franchise Royalty Fees5.63%(34621.65)
Cost of Goods Sold (COGS)28.13%(173108.25)
Labor (Variable)14.63%(90016.29)
Total (Expenses)90.00%(553946.40)
Net Profit10.00%61549.60

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

Papa Murphy’s Payback Period

With a midpoint investment of $415,403 and an estimated 10% profit on the average net sales from 2020, the yearly profit would be $61,549.60.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Midpoint Investment / Yearly Profit = $415,403 / $61,549.60 = 6.75 years

It would take around 6.75 years to pay back the initial investment for a Papa Murphy’s franchise based on these figures. This time could be shorter or longer depending on many things like sales, costs, and how the business is run.

Papa Murphy’s Failure Rate

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Franchised outlets:

  • In 2018, the failure rate was (43)/1,334×100≈3.22%
  • In 2019, the failure rate was (35)/1,291×100≈2.71%
  • In 2020, the failure rate was (25)/1,256×100≈1.99%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Company-Owned outlets:

  • In 2018, the failure rate was (39)/145×100≈26.90%
  • In 2019, the failure rate was (32)/106×100≈30.19%
  • In 2020, the failure rate was (16)/74×100≈21.62%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For Total outlets:

  • In 2018, the failure rate was (82)/1,479×100≈5.54%
  • In 2019, the failure rate was (67)/1,397×100≈4.80%
  • In 2020, the failure rate was (41)/1,330×100≈3.08%

According to the above-mentioned data, we can see that the franchised outlets for Papa Murphy’s grew from 2018 to 2020, showing a growth rate between 3.22% and 1.99%.

On the other hand, for company-owned outlets, the failure rate of Papa Murphy’s was lying in the range between 26.90% and 21.62% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Papa Murphy’s franchise has declined in the years 2018-2020, showing a total failure rate between 5.54% and 3.08%.

Entrepreneurs considering a venture into the pizza franchise sector might explore options such as Cici’s Franchise, Blaze Pizza, Jet’s Pizza, Chicago Pizza, and Little Caesar franchises.

Papa Murphy’s Comparison

CompanyPapa Murphy’sPapa John’s
Founded In19951984
Initial Investment$308,469 – $557,879 $130,120 – $844,420
Total Outlet13004,456
Annual Revenue$800 Million$2.1 Billion 

Frequently Asked Question

How many locations does Papa Murphy's have?

Currently, Papa Murphy’s has more than 1300 franchise locations worldwide.

Is Papa Murphy's a franchise?

Yes, Papa Murphy’s is a Vancouver, Washington-based pizza franchise company.

How much does a Papa Murphy's Franchise Cost?

Opening a Papa Murphy’s franchise requires an investment of $308,469 – $557,879 and an additional $25,000 as an initial franchise fee.

Who currently owns Papa Murphy's in 2024?

MTY Food Group is the owner of Papa Murphy’s. This relationship shows that Papa Murphy’s is part of the larger portfolio managed by MTY Food Group, a company known for owning various food-related businesses.

Who founded Papa Murphy's?

Murphy’s Pizza was founded by Robert Graham. He pioneered the “take ‘n’ bake” concept by developing a pizza dough that would bake up crusty and delicious at 425°, a temperature that home ovens can achieve. In 1995, Murphy’s Pizza merged with another chain, leading to the creation of Papa Murphy’s.

Where is Papa Murphy headquartered?

Papa Murphy is headquartered in Vancouver, Washington.

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