Papa Murphy’s Approved for $7.5 Million Credit Facility
Papa Murphy’s take-and-bake pizza and its streamlined operation has delivered it unto the upper echelon of national pizza brands. Now, thanks to a franchise lending program created by Franchise America Finance and The Bancorp Bank, the burgeoning brand is poised to grab a bigger slice of the pizza market.
The $7.5 million facility provides start-up funding for franchisees entering the Papa Murphy’s system, as well as expansion funding for existing franchisees that are ready to expand their businesses. This capital will allow Papa Murphy’s to help stimulate the economy by creating new permanent and sustainable jobs.
“We are very pleased to begin our new business relationship with Franchise America Finance and The Bancorp Bank,” says Kevin King, chief development officer for Papa Murphy’s. “We consider the completion of this financing program to be a critical asset as we continue to grow our business nationally.”
By the end of next year, King plans to further expand Papa Murphy’s national footprint to the tune of more than 100 new stores, continuing to carve out a unique and growing niche in an industry long dominated by four major players – Pizza Hut, Domino’s, Little Caesars, and Papa John’s.
Today, Papa Murphy's operates more than 1,300 franchised and corporate-owned locations in 37 states and Canada.
The average cost to open a Papa Murphy’s is approximately $209,330 to $396,710, a lower initial investment than most chains in the quick service industry.
“We are pleased to have Papa Murphy’s join the growing brand portfolio at Franchise America Finance,” said Ronald Feldman, CEO of Franchise America Finance. “Papa Murphy’s has had a long history of stellar operations and consistent performance.”
Created in 2010, the lending program is the first of its kind, providing a collaborative effort between lender and franchisor to set up a predictable model for franchise financing. Specifically created for start-up and expanding franchise businesses, the program is limited to approximately 30 franchise systems with measured performance and experience within their operations. Funding is available for new and existing franchisees who meet predetermined standards set by The Bancorp Bank in collaboration with the franchisor.
According to Feldman, Franchise America Finance is actively looking for brands with similar metrics and practices to expand its portfolio.