Papa Murphy's Franchise
Cost, fees, owner earnings, closure rate and litigation for a Papa Murphy's franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Papa Murphy's discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Self-reported net sales data for 947 franchises (2025). Average $687,539; median $617,941. West region avg $808,631. No audits/verification performed. Cherry-picking: only includes stores open full 52 weeks.
What a Papa Murphy's franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $25,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 7% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $450,330 – $693,450 | Item 7 — franchisor's own low/high estimate |
5% royalty, 2% brand marketing, 5%+ local marketing minimum $2,000/month. $0.35 online ordering per transaction. Multiple technology/POS fees $95-600/month.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Papa Murphy's system size and owner turnover
| Total outlets | 1,014 |
| Ceased operations | 2 |
| Terminated by franchisor | 31 |
| Transferred to new owners | 48 |
| Closure rate | 0.2% of outlets |
Franchised stores declined 36 (2025), 118 (2024), 26 (2023). Terminations 31 in 2025.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Papa Murphy's worth it? — how it compares to 38 similar franchises
| Ongoing fees | 7% of sales | lower than most (median 8%) |
| Startup cost | from $450,330 | about average (median $380,000) |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 0.2% of outlets | better than most (median 0.6%) |
| Disclosed lawsuits | 3 | more litigious than 71% of peers |
Benchmarked against every pizza franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Papa Murphy's
The franchisor's framing: Self-reported net sales data for 947 franchises (2025). Average $687,539; median $617,941.… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Papa Murphy's franchise — frequently asked
- How much does a Papa Murphy's franchise cost?
- The FDD lists a total initial investment of about $450,330–$693,450, including a $25,000 initial franchise fee.
- How much do Papa Murphy's franchise owners make?
- Self-reported net sales data for 947 franchises (2025). Average $687,539; median $617,941. West region avg $808,631. No audits/verification performed. Cherry-picking: only includes stores open full 52 weeks. We grade this disclosure C for honesty.
- What are the Papa Murphy's franchise fees?
- Papa Murphy's FDD discloses a $25,000 initial franchise fee, a 5% royalty on gross sales, a 2% advertising-fund contribution, for roughly 7% of gross sales in recurring fees before rent, labor, or debt service. 5% royalty, 2% brand marketing, 5%+ local marketing minimum $2,000/month. $0.35 online ordering per transaction. Multiple technology/POS fees $95-600/month.
- What is the Papa Murphy's franchise profit margin?
- Papa Murphy's does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Self-reported net sales data for 947 franchises (2025). Average $687,539; median $617,941. West region avg $808,631. No audits/verification performed. Cherry-picking: only includes stores open full 52 weeks. Recurring fees alone take about 7% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Papa Murphy's franchise failure rate?
- Franchised stores declined 36 (2025), 118 (2024), 26 (2023). Terminations 31 in 2025.
- How many Papa Murphy's locations are there?
- Papa Murphy's FDD reports 1,014 total outlets, with 2 that ceased operations in the most recent reporting year and 48 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Papa Murphy's have complaints or lawsuits?
- Papa Murphy's discloses 3 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Papa Murphy's franchise worth it?
- It depends on the numbers, not the pitch. Papa Murphy's scores C on disclosure honesty, carries about 7% of sales in ongoing fees, and discloses 3 legal matters. Get the real owner take-home before you sign.
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Compare Papa Murphy's to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Papa Murphy's or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.