How Much Does a Papa Murphy's Franchise Owner Make?
Papa Murphy's is a take-and-bake pizza franchise that opened in 1981 in Vancouver, Washington. Customers pick out the type of pizza they want, watch the person make it in front of them, then take it home in a disposable tray to bake in their own oven.
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Investment
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Startup costs for beginning a franchise range from $171,655 to $353,225 (as of 2010). This includes the initial franchise fee, facility, equipment, inventory, training, insurance, payroll and working capital. In addition, Papa Murphy's requires franchisees to have $80,000 in liquid capital.
Expenses
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Franchisees continually pay Papa Murphy's a percentage of store revenue for royalties, advertising and accounting. There are also set annual fees including franchise renewal, insurance, customer relations, franchise conventions and ongoing training.
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Gross Receipts
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Individual store earnings vary greatly depending on location and owner/manager. On average, Papa Murphy's claims each store has gross annual revenues of about $560,000. However, that figure does not include ongoing costs and initial investment loan repayment.
Profits
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Based on average sales, a franchise owner who works and manages the store may earn up to $200,000 a year. Actual earnings may be less or more depending on the number of employees, how many hours the owner works, initial loan repayment amount and store sales.
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References
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