Papa Murphy’s operates differently from a conventional pizza restaurant. Customers buy freshly prepared pizzas and bake them at home, allowing stores to operate without pizza ovens or dine-in facilities. That model reduces some restaurant infrastructure requirements, but opening a new location still represents a substantial investment.

Papa Murphy’s currently puts the total estimated initial investment at $450,330 to $693,450. The company’s current startup-cost page provides a detailed breakdown of most of the expenses included in that range, while its 2026 Franchise Disclosure Document, or FDD, confirms the same overall investment range.

The figure is an estimate rather than a fixed price. The eventual cost depends on factors including the property, geographic market, construction requirements and condition of the premises. Papa Murphy’s specifically identifies geographic area, premises condition and construction costs as factors that can affect the investment.

Papa Murphy’s estimates that opening a new location requires the following startup costs, according to the investment schedule in its 2026 Franchise Disclosure Document.

Papa Murphy’s own online cost table displays all of these categories except the potential lease guaranty fee. Its 2026 FDD includes a lease guaranty fee of up to $10,000 when applicable, which reconciles the individual high-end estimates with the stated maximum total investment of $693,450.

These figures represent different types of expenditures. Some are one-time development costs, others are deposits or equipment purchases, and several cover only a defined period immediately before or after opening. They should not be interpreted as a guaranteed construction quote or as the total amount a franchisee will spend over the life of the business.

The largest individual cost category is leasehold improvements, estimated at $210,500 to $325,000. Papa Murphy’s says costs can vary considerably according to the location and condition of the premises.

Leasehold improvements cover the work required to prepare a commercial property for operation as a Papa Murphy’s store. The 2026 FDD notes that its estimate does not account for tenant improvement allowance provided by a landlord, nor does it include freestanding buildings or exterior renovations. The FDD also reports that the average cost of leasehold improvements was $166 per square foot in 2025.

That historical average is different from the $210,500 to $325,000 Item 7 estimate. The per-square-foot figure describes actual leasehold improvement experience during 2025, while the Item 7 range estimates what a prospective franchisee may need to budget when establishing a new store.

Papa Murphy’s says a typical location occupies approximately 1,200 to 1,400 square feet. Its take-and-bake model does not require ovens or dine-in space, but the property must still be converted to the franchise system's specifications.

The condition of a prospective site can therefore have a major effect on the final investment.

The opening package is the second major component of the startup budget.

Papa Murphy’s estimates $160,000 to $173,000 for an opening package that includes equipment and supplies, décor, cabinets, the point-of-sale system and smallwares.

This expense is separate from leasehold improvements, signage, architectural drawings, inventory and working capital.

Taken together, leasehold improvements and the opening package account for $370,500 to $498,000 of the estimated startup costs. That makes the physical development and outfitting of the store considerably more expensive than the franchise fee itself.

Papa Murphy’s lists a franchise fee of $15,000 to $25,000 in its current startup-cost estimate.

Under the 2026 FDD, the standard initial franchise fee for a first store is $25,000. A franchisee purchasing additional stores pays a reduced subsequent franchise fee of $15,000 per additional store.

The distinction matters because the lower $15,000 figure should not be interpreted as the standard fee for a first-time franchisee opening one location.

Even at $25,000, the initial franchise fee accounts for only a small portion of the full investment. Real estate preparation, construction and equipment are much larger components of the startup budget.

The Item 7 estimate includes $15,000 for initial marketing fees and expenses covering six months. Papa Murphy’s states that this spending applies to marketing associated with establishing and launching the new location.

That initial marketing expense is different from the continuing fees and spending requirements that apply after the restaurant is operating.

Papa Murphy’s charges a 5% royalty fee on weekly Net Sales and a 2% Brand Marketing Fee on weekly Net Sales. The company's own franchise FAQ confirms both percentages, and its 2026 FDD summary reports the same rates.

The 2026 FDD also requires franchisees to spend at least 5% of Net Sales or $2,000 per month on local marketing and regional cooperative advertising, whichever is higher, depending on the applicable cooperative arrangements.

The 2% Brand Marketing Fee therefore should not be viewed as the franchisee's entire marketing commitment. Brand-level marketing and required local or cooperative marketing are separate obligations.

Franchisees also face technology, ordering and administrative fees in addition to the royalty and advertising requirements.

For example, the 2026 FDD lists an online ordering fee of $0.35 per online transaction, a $53 monthly loyalty-program fee, a $49 monthly Store Solutions Team Support fee, and $95 to $600 per month for POS software support, subscriptions, maintenance and hosting.

These charges do not represent the full cost of operating the restaurant. Franchisees must also account for ordinary business expenses such as food and other inventory, payroll, rent, utilities, insurance, maintenance and financing costs.

Some franchise-related fees apply only under particular circumstances. The 2026 FDD, for example, lists a relocation fee of $5,000 if a franchisee relocates a store.

For prospective owners, the key distinction is between expenses included in the Item 7 initial investment and costs that continue or arise later during ownership.

One unusual component of the startup range is the potential $0 to $10,000 lease guaranty fee.

The 2026 FDD states that this applies if a landlord requires a third-party lease guaranty and Papa Murphy’s or an affiliate agrees to act as guarantor. In that situation, the fee is equal to 10% of the rental obligations being guaranteed, subject to a maximum payment of $10,000.

Because the fee depends on the lease arrangement and on whether Papa Murphy’s agrees to provide the guaranty, it does not necessarily apply to every new franchise.

This also explains an apparent discrepancy in Papa Murphy’s online cost table. The company lists a maximum total investment of $693,450 but does not display the lease guaranty fee as a separate row on that webpage. The 2026 FDD includes the conditional fee, bringing the individual high-end estimates into line with the published maximum investment.

Papa Murphy’s says prospective owners seeking to open a new store need at least $125,000 in liquid capital and a net worth of at least $350,000 to be considered. Qualifying liquid assets can include accessible cash and investments such as stock funds, bank accounts, and eligible retirement assets.

These figures are financial qualification requirements. They are not estimates of what it costs to open a restaurant.

A candidate who meets the $125,000 liquid-capital requirement still faces an estimated initial investment beginning at $450,330. The qualification threshold therefore should not be interpreted as meaning a new Papa Murphy’s location can be opened with $125,000.

Papa Murphy’s says it does not provide direct in-house financing but works with third-party lenders familiar with its franchise model.

Any financing available to an individual franchisee will depend on factors outside the Item 7 investment estimate, including lender requirements, loan structure, interest rates and the borrower's financial position.

The initial investment estimate includes $10,000 to $50,000 in additional funds, working capital and miscellaneous expenses for three months.

According to the 2026 FDD, this category may include expenses such as legal fees, licenses, deposits, employee wages, recruiting costs and supplies. Papa Murphy’s also recommends direct access to at least $10,000 in working capital during the initial 3 months of operation.

Importantly, the estimate covers only a defined three-month startup period.

It does not mean that a franchisee is guaranteed to become self-sustaining within three months or that additional capital will never be required. A location that needs more time to generate sufficient cash flow could require additional owner capital or financing.

That distinction applies broadly to Item 7 estimates. The figure represents the franchisor's estimate of the initial investment required to establish the business and operate through the period specified in the disclosure. It is not a forecast of the franchisee's eventual total capital requirement.

Papa Murphy’s also provides a financial performance representation in Item 19 of its FDD.

For the 52 weeks ending September 24, 2025, the company reported average Net Sales of $687,539 across 947 franchised stores included in its systemwide calculation. Of those stores, 384, or 40.5%, met or exceeded the reported average.

The 2026 FDD also reports systemwide median Net Sales of $617,941 for the same 2025 reporting period.

Average and median sales measure different things. The average is calculated by dividing the combined Net Sales of the stores in the population by the number of stores, while the median represents the midpoint of the distribution. A difference between the two indicates that the sales results are not distributed evenly across locations.

More importantly, Net Sales are not franchisee earnings or profit.

A store must still pay food costs, wages, occupancy costs, royalties, required marketing expenses, technology charges, utilities, insurance, maintenance, debt payments and other operating expenses. The Item 19 sales figures therefore cannot be directly compared with the initial investment range to calculate an expected return.

Nor do systemwide historical sales establish what a newly opened location will generate. Papa Murphy’s itself states that there is no assurance an individual franchisee will achieve the results in its Item 19 presentation.

The current $450,330 to $693,450 estimate differs materially from the figures found on some franchise directories and older Papa Murphy’s webpages.

The reason is that those sources may still display the previous FDD year's estimates. Papa Murphy’s 2025 FDD, for example, estimated a total investment of $367,428 to $733,124. The 2026 FDD raised the low end substantially while reducing the maximum estimate.

The changes are particularly visible in construction. The current leasehold improvement estimate is $210,500 to $325,000, compared with a lower minimum in the previous disclosure.

For anyone evaluating the franchise today, the relevant figures are therefore those from the 2026 FDD filed on March 27, 2026, rather than the older 2025 investment schedule.

The most useful number for understanding the cost of a new Papa Murphy’s franchise is the $450,330 to $693,450 total estimated initial investment, not the franchise fee viewed on its own.

The breakdown shows why. Leasehold improvements can reach $325,000, while the opening equipment package can add another $173,000. Rent, architectural work, signs, inventory, marketing and working capital increase the amount further.

Papa Murphy’s take-and-bake model eliminates some of the equipment and space associated with traditional pizza restaurants, but opening a location remains a sizable commercial development project.

For a prospective franchisee, the property selected and the amount of work required to prepare it can have a much larger effect on the final investment than the franchise fee itself. The current FDD provides the starting range, but location-specific lease terms, construction estimates, financing costs and the amount of capital available after opening ultimately determine the financial commitment required to establish the business.