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Top 250 Franchise by Entrepreneur – Rank no. 30 – Papa Murphy’s – US
Products & Services: Take-&-bake pizza
Number of Locations: 1,369
Total Investment: $215.91K – 378.42K
Founded: 1981
Began Franchising: 1982
About Papa Murphy’s
Hillsboro, Oregon-based pizza chain Papa Aldo’s and Petaluma, California-based chain Murphy’s Pizza were both acquired by Terry Collins, who merged them into one brand in 1995: Papa Murphy’s. Papa Murphy’s stores make pizzas for customers to take home and bake themselves. Side items such as cookie dough, cheesy bread and salads are also offered.
Franchise Units
YEAR | U.S. | CANADIAN | INTERNATIONAL | COMPANY OWNED |
2013 | 1,283 | 18 | 0 | 68 |
2012 | 1,234 | 15 | 0 | 54 |
2011 | 1,213 | 17 | 0 | 33 |
2010 | 1,169 | 14 | 0 | 34 |
2009 | 1,090 | 16 | 0 | 35 |
California, Colorado, Iowa, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Midwest, New Mexico, Nevada, Ohio, South, Southeast, Southwest, Wyoming.
Franchisor is seeking new units in Canada.
Startup Costs, Ongoing Fees and Financing
Franchise Fee: $25,000
Ongoing Royalty Fee: 5%
Term of Franchise Agreement: 10 years, renewable
FINANCIAL REQUIREMENTS
Net Worth: $275,000
Liquid Cash Available: $80,000
OPERATIONS
52.4% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 11 – 12. Absentee ownership of franchise is NOT allowed..
FINANCING TYPE | IN-HOUSE | THIRD PARTY |
Franchise Fee | ||
Startup Costs | ||
Equipment | ||
Inventory | ||
Accounts Receivable | ||
Payroll |
How This Franchise Supports Franchisees
Franchise Ranking History
About Papa Murphy’s
Hillsboro, Oregon-based pizza chain Papa Aldo’s and Petaluma, California-based chain Murphy’s Pizza were both acquired by Terry Collins, who merged them into one brand in 1995: Papa Murphy’s. Papa Murphy’s stores make pizzas for customers to take home and bake themselves. Side items such as cookie dough, cheesy bread and salads are also offered.
Franchise Units
YEAR | U.S. | CANADIAN | INTERNATIONAL | COMPANY OWNED |
2013 | 1,283 | 18 | 0 | 68 |
2012 | 1,234 | 15 | 0 | 54 |
2011 | 1,213 | 17 | 0 | 33 |
2010 | 1,169 | 14 | 0 | 34 |
2009 | 1,090 | 16 | 0 | 35 |
California, Colorado, Iowa, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Midwest, New Mexico, Nevada, Ohio, South, Southeast, Southwest, Wyoming.
Franchisor is seeking new units in Canada.
Startup Costs, Ongoing Fees and Financing
Franchise Fee: $25,000
Ongoing Royalty Fee: 5%
Term of Franchise Agreement: 10 years, renewable
FINANCIAL REQUIREMENTS
Net Worth: $275,000
Liquid Cash Available: $80,000
OPERATIONS
52.4% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 11 – 12. Absentee ownership of franchise is NOT allowed..
FINANCING TYPE | IN-HOUSE | THIRD PARTY |
Franchise Fee | ||
Startup Costs | ||
Equipment | ||
Inventory | ||
Accounts Receivable | ||
Payroll |
How This Franchise Supports Franchisees
Franchise Ranking History
Love at 425°
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Industry | Fast food restaurants |
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Founded | 1981 |
Headquarters | Vancouver, Washington |
Number of locations | ~1,350 |
Products | Pizza |
Revenue | $800 million |
Parent | Lee Equity Partners |
Website | papamurphys.com |
Papa Murphy’s, a business based in Vancouver, Washington, United States, is a take-and-bake pizza company.[1] Started in 1981 asPapa Aldo’s Pizza and 1984 as Murphy’s Pizza, the two chains merged in 1995. The company and its franchisees operate more than 1,300 outlets in the United States and Canada. Papa Murphy’s is the fifth-largest pizza chain in the country.
History[edit]
The chain of take and bake pizzerias traces its history back to 1981, when the Papa Aldo’s Pizza chain was begun in Hillsboro, Oregon. Three years later Murphy’s Pizza chain began in Petaluma, California. Eventually both chains were acquired by Terry Collins, who in 1995 merged the two chains into the Papa Murphy’s chain. The chain was incorporated as Papa Murphy’s International, Inc. In 2003, Papa Murphy’s was voted “Best Pizza Chain in America” by Restaurants and Institutions Magazine and have been every year since.[3] The company was merged with PMI Holdings, Inc. in 2004.
Papa Murphy’s won the platinum award for Consumers’ First Choice in pizza chains in 2006.[4] Winner of Pizza Today‘s 2009 Chain of the Year, as well as in 2001, 2006, and 2008. Papa Murphy’s Pizza was voted #1 Rated Pizza Chain for the third consecutive year, according to more than 10,500 respondents in Zagat’s 2012 Fast-Food Survey.[5] in 2013 QSR (Quick Service Restaurant) Magazine,[6] recognized Papa Murphy’s with a 2013 Franchisee Satisfaction Award.[7]
In 2010, the chain was sold to Lee Equity Partners of New York.[8][9] Sales for the chain totaled $702 million in 2011,[10] which grew to $800 million in 2012 from 1,350 outlets.[11]Reuters recently reported that Papa Murphy’s New York parent, Lee Equity Partners, is preparing a public offering for the take-and-bake pizza chain.[12]
Operations[edit]
Orders are available by walk-in or call-in and also online orders. Some stores have a drive-thru window where customers can pick up call-in orders. Unlike regular pizza establishments, the pizza is made at the store but is not baked there. Instead, consumers bake the pizzas at their own homes. According to Nation’s Restaurant News, take-and-bake pizzerias typically have lower costs because they require less restaurant space and equipment. As a result, they are often able to undercut the national pizza giants.[13] Papa Murphy’s also offers salads, chocolate chip cookie dough, cheesy bread, cinnamon wheels, smores dessert pizzas, soft drinks in various sizes, and in some locations, lasagnas and chicken wings.
Papa Murphy’s Pizza in Mooresville, Indiana
There are currently over 1,250 stores in 37 states, plus fourteen more in Canada. Nearly all of the stores are franchised. Because Papa Murphy’s pizzas are unbaked, many states allow them to be purchased with EBT or food stamps — similar to purchasing unbaked or frozen pizzas in the supermarket.
Franchise[edit]
Papa Murphy’s ranked No. 5 on Forbes magazine’s list of the top 20 restaurant franchises to buy in 2011.[14] [15]