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Papa Murphy’s Franchise: Costs, Fees and Store Counts in the 2026 FDD

Stainless prep tables with raw pizza dough rounds and sliced vegetables in a small kitchen with no ovens

A Papa Murphy’s franchise costs $450,330 to $693,450 to open under the March 27, 2026 FDD, including a $25,000 first-store fee. The store bakes nothing: guests take raw pizzas home, so the budget carries no ovens or hoods.

Key takeaways

  • Item 7 of the Papa Murphy’s Franchise Disclosure Document, issued March 27, 2026 totals $450,330 to $693,450 across 19 lines; leasehold improvements ($210,500 to $325,000) and the Opening Package ($160,000 to $173,000) make up most of it.
  • The cover page says $213,950 to $265,300 of that is paid to Papa Murphy’s or its affiliates, which equals the $25,000 fee plus the $188,950 to $240,300 a Development Billing Agreement can route through the franchisor (Item 5).
  • After opening, Item 6 charges a 5% royalty and a 2% Brand Marketing Fee on weekly Net Sales, plus local marketing of at least the greater of 5% of Net Sales or $2,000 a month.
  • Item 20 shows franchised outlets falling from 1,145 at the start of 2023 to 965 at the end of fiscal 2025 (November 30, 2025), after 172 terminations against 31 openings over the three fiscal years.
  • Papa Murphy’s International LLC sits under MTY Food Group: Papa Murphy’s Holdings merged with an MTY subsidiary on May 23, 2019, and MTY Franchising USA, Inc. guarantees the franchisor’s obligations (Items 1 and 21).
Key numberFigureWhere in the FDD
Total initial investment$450,330 to $693,450Cover page, Item 7
First-store / additional-store fee$25,000 / $15,000Item 5
Royalty / Brand Marketing Fee5% / 2% of weekly Net SalesItem 6
Typical time to openAbout 210 daysItem 11
Average store opened in 20251,418 sq ft (973 to 1,800)Item 7, note 6
Total outlets, November 30, 20251,014 (965 franchised, 49 company-owned)Item 20, Table No. 1
Term / renewal10 years / 5 yearsItem 17

What are the 19 lines in Papa Murphy’s Item 7?

Item 7 of the 2026 Papa Murphy’s FDD lists 19 expenditure lines that add up to $450,330 to $693,450. Two lines carry the weight: leasehold improvements at $210,500 to $325,000 and the Opening Package at $160,000 to $173,000. The franchisor says the build figures reflect about six “Kitchen Delite” stores built in 2024 and 2025 across several regions (Item 7, note 4).

Item 7 line (as printed)LowHighPaid to
Initial or Subsequent Franchise Fee$15,000$25,000Papa Murphy’s
Lease and Utilities Deposits and Payments$3,000$7,500Landlord, utilities, contractors
Leasehold Improvements$210,500$325,000Landlord, contractors
Signs$10,000$25,000Suppliers
Stamped Architectural Drawings$11,150$13,050Architect
As Built Survey$2,800$5,000Suppliers
Opening Package (equipment, supplies, decor, cabinets, POS System, smallwares, warehousing, last-mile delivery)$160,000$173,000Papa Murphy’s or suppliers
Miscellaneous Development Service Fees$0$1,270Papa Murphy’s
Inventory$5,000$9,600Suppliers
Initial Marketing Fees and Expenses, 6 months$15,000$15,000Papa Murphy’s or suppliers
Franchise Premises Rent, 3 months$4,500$17,500Landlord
Materials and Supplies$500$2,000Suppliers
Operations In-Store Training, Enterprise Solution Training and Foundations Class$0$750Papa Murphy’s
Travel and Living Expenses for training$1,180$9,305Airlines, hotels, restaurants
Employee Training$500$1,500Employees
Insurance, 3 months$375$1,175Insurers
Bookkeeping/Payroll Service, 3 months$825$1,800Approved vendor
Lease Guaranty Fee$0$10,000Papa Murphy’s or affiliate
Additional Funds, Working Capital, and Miscellaneous Expenses, 3 months$10,000$50,000Employees, suppliers, utilities
Total estimated initial investment$450,330$693,450Source: FDD Item 7

The low total uses the $15,000 Subsequent Franchise Fee, which only applies to a second or later store. A first-time buyer pays the $25,000 Initial Franchise Fee, so the same low column becomes $460,330 for a first store (our arithmetic: $450,330 plus the $10,000 fee difference). Item 5 adds that the fees actually charged in fiscal 2025 ranged from $0 to $25,000.

Note 2 says leasehold improvements averaged $166 per square foot in 2025 and excludes any landlord tenant improvement allowance. At the 1,418 square-foot average store opened in 2025, that rate works out to $235,388; at the 973 and 1,800 square-foot extremes it gives $161,518 and $298,800 (our arithmetic from notes 2 and 6). A space at the large end of the range plus an older shell is how a buyer moves toward the $325,000 ceiling.

Figure 1Papa Murphy's Item 7: the largest linesLow and high estimates, FDD issued March 27, 2026
Leasehold Improvements$210,500Opening Package$160,000Additional Funds (3 months)$10,000Initial or Subsequent Franchise Fee$15,000Signs$10,000Rent (3 months)$4,500Initial Marketing (6 months)$15,000Architectural Drawings$11,150Lease Guaranty Fee$0Other 10 lines$14,180
Source: Papa Murphy's Franchise Disclosure Document issued March 27, 2026, Item 7 (Minnesota CARDS 35626-202603-09).

Leasehold improvements and the Opening Package account for $370,500 of the $450,330 low total. Source: Papa Murphy’s FDD issued March 27, 2026, Item 7.

The franchise costs guide explains how Item 7 ranges are built across brands. Papa Murphy’s does not finance any of these lines: Item 10 says neither the franchisor nor an affiliate offers direct financing, although the franchise site says financing is available through a third party.

Without ovens, what does the $160,000 to $173,000 Opening Package buy?

Item 1 states that Papa Murphy’s Franchised Store models “do not have pizza ovens, venting hoods or dining areas,” average 1,400 square feet, and need no delivery drivers or wait staff. The Opening Package line in Item 7 still runs $160,000 to $173,000 because it bundles equipment and supplies, decor, cabinets, the POS System, smallwares, warehousing and last-mile delivery into one purchase.

The FDD does not print a model-by-model equipment list. What it does show is the work the equipment has to support. Item 1 says each store makes dough daily from flour, water and yeast, grates cheese daily from blocks of 100% whole-milk mozzarella and slices vegetables by hand. The Operations Manual table of contents in Exhibit E names these stations:

  • Dough: dough mixing, doughballing, sheeting and proofing, with an “Emergency Sheeting” procedure.
  • Prep: cheese grated daily from mozzarella blocks and vegetables sliced by hand (Item 1).
  • Makeline: stocking inserts, saucing, cheesing, portioning toppings, then wrapping the raw pizza.
  • Storage: dry storage, cold storage and freezers.
  • Guest side: CREATE in store, TAKE it home, BAKE in their own oven (Item 1).
  • Not in the store model: pizza ovens, venting hoods, dining areas, delivery drivers and wait staff (Item 1).
Diagram of a Papa Murphy's store: dough, prep and makeline stations, Opening Package, and no ovens, hoods or dining area Inside a Papa Murphy’s Franchised Store: no ovens, no hoods, no dining room Average store opened in 2025: 1,418 sq ft (range 973 to 1,800). Source: 2026 FDD, Item 1 and Item 7 Note 6 In the store (Item 1, Exhibit E manual contents) Dough Made daily from flour, water, yeast; sheeting, proofing Prep Cheese grated daily from mozzarella blocks; vegetables sliced by hand Makeline Sauce, cheese, toppings; pizza built raw, then wrapped Opening Package (Item 7): $160,000 to $173,000 Equipment and supplies, decor, cabinets, POS System, smallwares, warehousing and last-mile delivery. POS alone: $21,000 to $24,000 (Item 11) Manual also covers dry storage, cold storage and freezers (Exhibit E) At the guest’s home CREATE in store TAKE it home BAKE in their own oven Not in the store model (Item 1) Pizza ovens | Venting hoods | Dining areas | Delivery drivers | Wait staff Item 8: franchisees may not sell baked products except as the Operations Manual allows.
What a take-and-bake store holds and leaves out, per Item 1, Item 7, Item 11 and the Exhibit E manual contents of the FDD issued March 27, 2026.

Inside the Opening Package, Item 11 puts the POS System at $21,000 for a minimally configured system to $24,000 for a five-terminal system, including hardware, software, installation and training. Item 7 note 4 separately estimates initial POS deployment costs at about $1,450 to $7,500 or more. Item 8 also says franchisees may not sell any baked products except as the Operations Manual allows, and may be required to apply to accept electronic benefit transfer (EBT) cards.

How much of the startup money flows through Papa Murphy’s itself?

The cover page says $213,950 to $265,300 of the Item 7 total must be paid to Papa Murphy’s or its affiliates. That range is the $25,000 Initial Franchise Fee plus the $188,950 to $240,300 that Item 5 says a franchisee may reimburse under a Development Billing Agreement, where Papa Murphy’s pays build-out and grand-opening vendors from a bank account the franchisee funds.

PaymentAmountPaid toSource
Initial Franchise Fee (first store)$25,000, nonrefundablePapa Murphy’sItem 5
Development Billing Agreement reimbursements$188,950 to $240,300Papa Murphy’s, passed through to vendorsItem 5, Exhibit L
Lease Guaranty Fee, if the franchisor guarantees your lease10% of guaranteed rent, up to $10,000Papa Murphy’s or affiliateItems 5 and 7, Exhibit M
Extension Fee for up to 6 more months to open$2,500Papa Murphy’sItem 5
Multiple Store Commitment$25,000 first store plus $15,000 each additional, due at signingPapa Murphy’sItem 5, Exhibit G
Share of startup spend bought from Papa Murphy’s, affiliates or approved suppliers45% to 60% of Item 7VariousItem 8
Share of ongoing purchases from the same sources80% to 98%VariousItem 8

Item 8 also shows what the franchisor collects around those purchases. In fiscal 2025 Papa Murphy’s reported total revenues of $56,426,458; $438,058 (0.78%) came from equipment or services bought from it or affiliates, and $2,149,941 (3.81%) came from supplier payments tied to the Franchise Convention and meetings. Vendor allowances on franchisee purchases usually run 1% to 5%. Our supplier rebate research compares how other franchisors disclose the same income.

What comes out of the store account each week and each month?

Item 6 lists three percentage charges on weekly Net Sales: a 5% Royalty Fee, a 2% Brand Marketing Fee and a local marketing requirement of at least the greater of 5% of Net Sales or $2,000 a month. Papa Murphy’s pulls fees by ACH. On top sit nine fixed monthly technology and program charges that total $301 to $1,660 a month.

Percentage chargeRateDetailSource
Royalty Fee5% of weekly Net SalesUp to 15% during a breach, charged for at least 14 days (note 20)Item 6
Brand Marketing Fee2% of weekly Net SalesPaid into the Brand Marketing FundItem 6, note 4
Local Marketing and Promotion and Regional Cooperative AdvertisingGreater of 5% of Net Sales or $2,000 per monthCooperatives currently contribute up to 7.5% of Net SalesItem 6, note 5
Online Ordering Fee$0.35 per online transactionMay rise up to 5% in any 12-month periodItem 6
Gift Card Redemption Fee6.06% to 13.63% of redemptionVaries by redemption typeItem 6, note 9
Credit card processing (estimate)1% to 4% of Net SalesPaid to the approved vendorItem 11

The fixed charges below need no sales assumption, so they can be added straight into a monthly budget. The table is our arithmetic from the amounts Item 6 prints; the payment gateway fee is billed quarterly and shown here at its monthly rate.

Fixed Item 6 chargeLow per monthHigh per month
Customer Relations Management$10$10
Loyalty Program$53$53
Food Service Incident Management$3$3
Store Solutions Team Support$49$49
POS Software Support, Subscription, Maintenance and Hosting$95$600
Managed Firewall Service/Network Security$30$90
Business Class High Speed Internet Access$50$200
Secure Payment Gateway and Related Technology$11$25
Bookkeeping/Payroll Service (required in year one)$0$630
Total fixed charges$301$1,660
Plus the $2,000 local marketing floor$2,301$3,660

The Brand Marketing Fund that receives the 2% fee ran a deficit in fiscal 2025. Item 11 reports $19,043,004 in advertising fees, $23,563,547 in total revenues and other sources, a $(7,539,487) carryover from the prior year, $23,309,399 in expenses and a closing fund deficit of $(7,285,339). Our advertising fund research shows how other systems report their funds. Other one-off charges in Item 6 include $4,000 to $50,000 for required upgrades, a $5,000 relocation fee and $100 a day for refusing a required promotion.

Who owns Papa Murphy’s, and why does MTY Food Group matter to a buyer?

The franchisor is Papa Murphy’s International LLC of Vancouver, Washington. Item 1 traces its owners up five levels to MTY Food Group Inc., a publicly traded Canadian company whose subsidiaries franchise 55 restaurant concepts. Papa Murphy’s Holdings, Inc. merged with a wholly owned MTY subsidiary on May 23, 2019, and MTY Franchising USA, Inc. now owns Papa Murphy’s Holdings.

Ownership chain from MTY Food Group Inc. down to Papa Murphy's International LLC, the franchisor Who owns Papa Murphy’s: the chain of parents in the 2026 FDD Source: Papa Murphy’s FDD issued March 27, 2026, Item 1 and Item 21 MTY Food Group Inc. Publicly traded, Saint-Laurent, Quebec, Canada MTY Franchising Inc. (“MTY Canada”) MTY Franchising USA, Inc. (“MTY USA”), Scottsdale, AZ Item 21: audited statements; guarantees franchisor’s obligations Papa Murphy’s Holdings, Inc. Merged with an MTY subsidiary on May 23, 2019 Papa Murphy’s Company Stores, Inc. Owns and runs the company-owned stores Papa Murphy’s International LLC (franchisor) Vancouver, WA; signs your Franchise Agreement Affiliate Murphy’s Marketing Services, Inc. Marketing and gift card services MTY pizza affiliates Johnnie’s New York Pizzeria; Sauce Pizza and Wine (Item 12) MTY Food Group or its subsidiaries franchise 55 restaurant concepts (Item 1)
Papa Murphy’s ownership chain as stated in Item 1 and Item 21 of the FDD issued March 27, 2026.
LevelEntityRole stated in the FDDSource
1MTY Food Group Inc.Publicly traded, Saint-Laurent, Quebec; subsidiaries franchise 55 restaurant conceptsItem 1
2MTY Franchising Inc. (“MTY Canada”)Parent of MTY USAItem 1
3MTY Franchising USA, Inc. (“MTY USA”), Scottsdale, AZParent of Papa Murphy’s Holdings; its audited statements are in Exhibit C and it guarantees the franchisor’s obligationsItems 1 and 21
4Papa Murphy’s Holdings, Inc.Merged with an MTY subsidiary on May 23, 2019Item 1
5Papa Murphy’s Company Stores, Inc.Owns and runs the company-owned storesItem 1
6Papa Murphy’s International LLCFranchisor; signs the Franchise AgreementItem 1
AffiliateMurphy’s Marketing Services, Inc.Marketing and gift card servicesItem 1
AffiliatesJohnnie’s New York Pizzeria; Sauce Pizza and WineMTY pizza concepts that may compete; neither grants exclusive territoryItem 12

Three practical effects follow. Item 21 attaches the audited statements of MTY USA as guarantor, not of Papa Murphy’s alone, so the franchisor’s own fiscal 2025 revenue of $56,426,458 is reported in Item 8 from internal records. Item 12 grants no exclusive territory and reserves internet sales to the franchisor. Item 12 also says conflicts with a Johnnie’s New York Pizzeria or Sauce Pizza and Wine franchisee that negotiation cannot settle go to litigation.

How many Papa Murphy’s stores opened, closed or changed hands from 2023 to 2025?

Item 20 Table No. 1 shows total outlets falling from 1,168 at the start of 2023 to 1,014 at the end of fiscal 2025, a net loss of 154. Franchised outlets fell from 1,145 to 965, while company-owned outlets rose from 23 to 49 as Papa Murphy’s took back stores. Over the three years, franchisees opened 31 stores and 172 left through termination.

Item 20 Table No. 1 from the Papa Murphy's FDD with the 2025 franchised row and total outlet rows boxed
Item 20 Table No. 1, page 58 of the Papa Murphy’s FDD issued March 27, 2026 (Minnesota CARDS), boxes added; accessed November 10, 2026.
Franchised outlets (Table No. 3)202320242025
Outlets at start of year1,1451,1191,001
Opened1984
Terminations459631
Non-renewals008
Reacquired by franchisor0281
Ceased operations, other reasons020
Outlets at end of year1,1191,001965
Transfers to new owners (Table No. 2)547148
Figure 5Papa Murphy's outlets, 2023 to 2025Franchised and company-owned outlets, Item 20 Table No. 1
FranchisedCompany-owned03006009001,2001,145Start of 20231,119End of 20231,001End of 2024965End of 2025
Source: Papa Murphy's Franchise Disclosure Document issued March 27, 2026, Item 20 Table No. 1.

Total outlets fell from 1,168 to 1,014 between the start of 2023 and November 30, 2025, while company-owned outlets rose to 49. Source: FDD Item 20 Table No. 1.

The 28 reacquisitions in 2024 match Table No. 4, which shows Papa Murphy’s taking back 15 stores in Tennessee, 7 in North Carolina, 3 in Alabama and 3 in Georgia. Table No. 1 lists 43 company-owned outlets at the end of 2024 but 44 at the start of 2025; Table No. 4 uses 44 for both, so a reader comparing the two tables will see a one-store gap.

The state file papa-murphys-item20-franchised-outlets-by-state-2023-2025.csv holds every Table No. 3 column for 36 states and three years. At the end of fiscal 2025 the largest franchised footprints were Washington (142), California (117), Oregon (99), Minnesota (84) and Wisconsin (76). Tennessee went from 22 franchised stores at the start of 2023 to 0 at the end of 2025. Table No. 5 lists 16 signed franchise agreements for stores not yet open and projects 9 franchised and 1 company-owned opening in the next fiscal year. Our franchise closure rate research sets these counts against other systems.

Buying an existing store instead: what do the transfer rules and SBA data show?

Resales are a large part of Papa Murphy’s ownership churn: Item 20 Table No. 2 counts 173 transfers to new owners from 2023 to 2025, against 31 new franchised openings. SBA loan records point the same way. Of 53 SBA 7(a) loans made under Papa Murphy’s franchise code S1274 from fiscal 2020 to June 30, 2026, 23 (43.4%) financed a change of ownership.

Those SBA counts come from the SBA 7(a) and 504 FOIA loan files as compiled in our franchise resale index. A resale buyer pays a transfer fee rather than the $25,000 Initial Franchise Fee, plus technology handover charges set out in Item 6:

Resale chargeAmountSource
Transfer Fee, buyer’s first store$25,000 less $2,500 per full year left on the term, minimum $12,500Item 6
Transfer Fee, buyer already a franchisee$15,000 less $1,500 per full year left, minimum $7,500Item 6
POS Change of Ownership Fee$500Item 6, note 12
Software License Transfer Fee$0 to $300Item 6, note 12
Online Ordering Transfer Fee$100Item 6, note 12
Store Manager to Ownership Transfer ProgramTransfer Fee may be waived for managers with 24 months of Papa Murphy’s store manager experienceItem 5

Item 19 allows the franchisor to share the actual records of a specific store you are considering buying, which is the one route to unit-level numbers for a resale. Listing sites and brokers are covered in our franchise for sale guide.

How long from signing to opening, and what deadlines apply?

Item 11 says the typical time from signing the Franchise Agreement or first payment to opening is about 210 days, and the store must open within one year. Item 5 allows an extension of up to six months for a $2,500 fee, and Item 17 makes failure to open within a year a default with 30 days to cure. The term is ten years.

Timeline from signing day 0 to typical opening near day 210, the day 365 deadline and the 10-year term Papa Murphy’s franchise: from signing to renewal Source: 2026 FDD, Items 5, 6, 11 and 17 Day 0 Sign; pay $25,000 fee Lease signed In-store training: up to 25 days or 250 hours About day 210 Typical opening (Item 11) Day 365 Opening deadline; extension up to 6 months for $2,500 First 180 days open Up to $15,000 opening marketing Year 10 Term ends; notice 6 months before; 5-year renewal Successive Franchise Fee: one-half of the then-current Franchise Fee (Item 6). Failure to begin operations within one year is a default with 30 days to cure (Item 17). Foundations Class: up to 6 days or 15 hours, virtual (Item 11).
Signing-to-renewal timeline built from Items 5, 6, 11 and 17 of the Papa Murphy’s FDD issued March 27, 2026.
MilestoneTimingCost or ruleSource
Sign Franchise AgreementDay 0$25,000 Initial Franchise FeeItem 5
Operations In-Store TrainingTypically after the lease is signedUp to 25 days or 250 hours; free for up to two signers, $750 per extra attendeeItem 11
Enterprise Solution TrainingWithin the in-store periodAbout 50 to 75 hoursItem 11
Foundations ClassBefore openingUp to 6 days or 15 hours, virtual; includes ServSafe Manager or state equivalentItems 7 and 11
Typical openingAbout day 210Item 7 budgets 3 months of rent and working capitalItem 11
Opening deadlineDay 365Extension up to 6 months for $2,500Items 5 and 11
Opening marketing windowBefore opening and the first 180 daysUp to $15,000Item 11
Renewal noticeAt least 6 months before year 10 ends5-year term; fee is one-half of the then-current Franchise FeeItems 6 and 17
After exit2 yearsNo pizza business within 25 milesItem 17

Our opening-time research compares the 210-day figure with other brands’ Item 11 disclosures.

What does Item 19 cover, and what drives what an owner keeps?

The 2026 FDD has an Item 19. It reports unaudited Net Sales for domestic franchise-owned stores open a full trailing 52 weeks: 947 stores for the period ending September 24, 2025, 1,015 for 2024 and 1,085 for 2023, with results for all stores and for West, Central and East regions. This site does not republish those figures; read them in Item 19 of the current FDD.

Item 19 reports sales, not owner profit, so the owner’s share depends on costs the FDD lets you size. The percentage charges in Item 6 take at least 12% of Net Sales (5% royalty, 2% brand fee, 5% local marketing) before rent, labor and food. Item 8 puts 80% to 98% of ongoing purchases through Papa Murphy’s, affiliates or approved suppliers, so food cost is largely set by the system. Rent depends on the 973 to 1,800 square-foot space you lease. The Item 19 research explains how to read sales-only disclosures, and the FTC Franchise Rule at 16 CFR 436.5(s) sets what an Item 19 must contain. Nothing here is legal, tax or investment advice.

Where do other Papa Murphy’s guides go wrong?

Several pages ranking for Papa Murphy’s franchise searches print figures that do not match the 2026 FDD or the franchisor’s own site. The most common problems are pre-2026 investment ranges, conflicting capital requirements and a parent company description that predates the 2019 MTY merger. Each correction below names the primary source and its date.

Claim foundWhat the primary source saysSource
A 2021 news feature: total investment $286,919 to $524,205$450,330 to $693,450FDD issued March 27, 2026, Item 7
Same feature: equipment and setup about $120,000 to $180,000Opening Package $160,000 to $173,000FDD Item 7
A 2026 deep dive: $80,000 liquid capital and $300,000 net worth$125k liquid assets and $350k net worthPapa Murphy’s franchise site, accessed November 2026
Same deep dive: training of “more than 80 hours”Up to 25 days or 250 hours in-store, plus up to 6 days or 15 hours virtualFDD Item 11
A listing last updated December 2022: technology fee of 0POS fees $95 to $600 a month, Store Solutions $49 a month, firewall $30 to $90 a monthFDD Item 6
A directory profile: Nasdaq-listed franchisorPapa Murphy’s Holdings merged with an MTY Food Group subsidiary on May 23, 2019FDD Item 1

Which entry route fits your capital and timeline?

The choice is mostly between building a new Kitchen Delite store, buying an existing store, or committing to several stores. Each route has a different cash threshold in the 2026 FDD, starting from the franchisor’s stated $125k liquid assets and $350k net worth. Compare Papa Murphy’s with delivery-based brands in our pizza franchise FDD comparison before choosing.

If your situation isRoute to look atThreshold from the FDD or franchisor
Under $125k liquid or under $350k net worthNot a fit for a new store at the franchisor’s stated minimumFranchise site: $125k liquid, $350k net worth
Can fund $460,330 to $693,450 and wait about 210 daysBuild a new storeItems 7 and 11; first-store fee $25,000
Landlord asks for a third-party lease guaranteeAsk whether Papa Murphy’s will guarantee it10% of guaranteed rent, capped at $10,000 (Item 5)
Want an operating store and cash flow records nowBuy a resale; request the store’s actual recordsTransfer Fee $12,500 to $25,000 for a first store (Item 6); 173 transfers 2023 to 2025 (Item 20)
Already manage a Papa Murphy’s for 24 months or moreStore Manager to Ownership Transfer ProgramTransfer Fee may be waived (Item 5)
Veteran, law enforcement officer, fire fighter, EMT, nurse or medical doctorMilitary or Heroes ProgramReduced Franchise Fee; amount not printed (Item 5)
Plan two or more storesMultiple Store Commitment$25,000 plus $15,000 per added store, all due at signing and nonrefundable (Item 5)
Need exclusive territoryReconsiderNo exclusive territory (Item 12)

For lender options on the $460,330 to $693,450 range, our franchise financing guide lists SBA and conventional routes.

How we compiled this

We read the Papa Murphy’s FDD issued March 27, 2026, as filed with the Minnesota Department of Commerce (CARDS document 35626-202603-09), Items 1 through 21 and Exhibit E, and rendered the Item 20 table from the filed PDF. We added the franchisor’s franchise website, the FTC Franchise Rule text and SBA loan counts from our own research datasets, all accessed in November 2026. Item 19 sales figures and franchisee names were excluded by site policy. The state table is in papa-murphys-item20-franchised-outlets-by-state-2023-2025.csv.

Frequently asked questions

How much does it cost to open a Papa Murphy's franchise?

Item 7 of the Papa Murphy’s FDD issued March 27, 2026 puts the total at $450,330 to $693,450. The low end assumes the $15,000 fee for an additional store; with the $25,000 first-store fee the low end is $460,330. Leasehold improvements ($210,500 to $325,000) and the Opening Package ($160,000 to $173,000) are the largest lines.

How much does a Papa Murphy's franchise owner make?

This site does not publish earnings figures. Item 19 of the 2026 FDD reports unaudited Net Sales for 947 franchise stores, split into West, Central and East regions, but no owner profit. What an owner keeps depends on rent, labor and food costs after Item 6 charges of at least 12% of Net Sales. Ask current owners listed in Exhibit B about their cost structure.

Who owns Papa Murphy's?

Papa Murphy’s International LLC, the franchisor, is owned through Papa Murphy’s Company Stores, Inc. and Papa Murphy’s Holdings, Inc. by MTY Franchising USA, Inc., a subsidiary of MTY Food Group Inc. of Quebec. Papa Murphy’s Holdings merged with an MTY subsidiary on May 23, 2019, according to Item 1 of the 2026 FDD.

Do Papa Murphy's stores have ovens?

No. Item 1 of the 2026 FDD says Papa Murphy’s Franchised Store models do not have pizza ovens, venting hoods or dining areas and average 1,400 square feet. Guests build or order a raw pizza, take it home and bake it in their own oven. The stores still make dough daily and grate cheese from whole-milk mozzarella blocks.

Is Papa Murphy's closing stores?

Item 20 shows a net decline. Total outlets fell from 1,168 at the start of 2023 to 1,014 at the end of fiscal 2025. Franchised outlets fell from 1,145 to 965, with 172 terminations, 8 non-renewals and 29 stores taken back by the franchisor over three years, while company-owned outlets rose from 23 to 49.

What do you need to qualify for a Papa Murphy's franchise?

The Papa Murphy’s franchise site lists $125k in liquid assets and $350k net worth. The FDD adds practical requirements: a franchisor-approved site and lease, completion of up to 250 hours of in-store training and a Foundations Class that includes ServSafe Manager or a state equivalent, and opening within one year of signing (Items 11 and 17).

Does Papa Murphy's offer a franchise discount for veterans?

Yes. Item 5 of the 2026 FDD describes a Military program for active personnel and honorably discharged veterans and a Heroes Program for law enforcement officers, medical doctors, nurses, emergency medical technicians and fire fighters. Both reduce the Franchise Fee, but the FDD does not print the discount amount, and Papa Murphy’s can change or end either program. The full fee is $25,000.

Sources

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