Papa Murphy’s is a well-known take-and-bake pizza brand in the United States. Unlike traditional pizza restaurants, Papa Murphy’s prepares fresh pizzas in-store for customers to take home and bake in their own ovens. This unique concept has helped the brand stand out in the competitive pizza industry. Because of its established name and different operating model, many entrepreneurs are interested in owning a Papa Murphy’s franchise. One of the most important questions potential franchisees ask is how much it costs to get started. This article explains the typical start-up investment required to open a Papa Murphy’s franchise in the USA in simple and clear terms.
Typical Start-Up Investment Range
The typical start-up costs to open a Papa Murphy’s franchise in the United States generally range from $367,428 to $733,124. This estimated range represents the total investment needed to build, equip, and launch a new store. The final cost within this range depends on factors such as location, size of the store, construction expenses, and local market conditions.
Stores located in busy shopping centers or high-rent areas may require a larger investment due to higher lease costs and build-out expenses. On the other hand, a smaller location in a lower-cost market may fall closer to the lower end of the range. Each franchise location is different, so the total investment can vary based on the specific site and market.
What the Initial Investment Covers
The total start-up cost includes several essential components required to open and operate a Papa Murphy’s location. One of the main expenses is the franchise fee. This fee gives the franchisee the right to use the Papa Murphy’s brand name, trademarks, and business system. It also includes access to training programs and ongoing support from the company.
Construction and leasehold improvements make up a significant portion of the investment. When opening a store, the space must be prepared to meet brand standards. This can include installing prep tables, refrigeration systems, counters, signage, flooring, lighting, and other interior elements. Even though Papa Murphy’s does not require large dine-in areas or expensive ovens for baking, the store must still meet operational and design requirements.
Equipment is another major expense. While Papa Murphy’s does not bake pizzas in-store, it still requires refrigeration units, food preparation equipment, storage systems, and point-of-sale technology. These tools are necessary for preparing fresh pizzas efficiently and maintaining food safety standards.
Initial inventory is also included in the start-up cost. Before opening, the store must be stocked with ingredients such as dough, cheese, sauces, toppings, packaging materials, and cleaning supplies. Having sufficient inventory ensures the business can operate smoothly during the first weeks of operation.
Working capital is another important part of the total investment. Working capital refers to the funds needed to cover early operating expenses such as payroll, rent, utilities, insurance, and marketing. It is common for new businesses to take some time to reach consistent profitability, so having adequate working capital helps maintain stability during the start-up phase.
Ongoing Costs and Financial Responsibilities
In addition to the initial investment, franchisees should plan for ongoing expenses. Papa Murphy’s franchise owners typically pay royalty fees based on a percentage of gross sales. These royalties support the brand’s continued development and corporate services. There may also be required marketing contributions that fund advertising and promotional campaigns.
Other ongoing expenses include food costs, employee wages, rent, utilities, insurance, and local advertising efforts. Managing these costs effectively is essential for maintaining profitability. Strong operational management and careful budgeting play a major role in long-term success.
Factors That Influence Total Costs
Several factors can affect whether your investment falls closer to $367,428 or $733,124. Real estate costs are often one of the biggest variables. Leasing space in a high-traffic retail center may increase rent and renovation expenses. Construction material costs and local labor rates can also impact the final total.
The size and layout of the store also matter. Some locations may require more extensive remodeling depending on the condition of the leased space. Careful site selection and planning can help control expenses and keep the investment within budget.
Summary
Opening a Papa Murphy’s franchise in the United States typically requires a total start-up investment ranging from $367,428 to $733,124. This estimate includes the franchise fee, construction and build-out costs, equipment, initial inventory, and working capital. The final cost depends on location, market conditions, and the specific details of the store.
For entrepreneurs interested in the pizza industry, Papa Murphy’s offers a unique take-and-bake concept that differs from traditional dine-in or delivery restaurants. However, as with any franchise investment, careful financial planning and a clear understanding of both start-up and ongoing costs are essential before moving forward.