How to Finance a Papa Murphy’s Franchise

Financing can make owning a take and bake pizza franchise more affordable; learn more about your options here

It costs money to start a business. And how you’ll fund yours is one of the first and most important choices you will need to make as a business owner. While there are many realistic financing options, some may better fit your needs than others. Taking the necessary time to research and understand how each one works—and how each one will benefit you—will help you discover the best choice and set you on your way towards achieving your dream of business ownership.

Papa Murphy’s—the nation’s largest take and bake pizza franchise with more than 1,200 locations—is here to help with more than three decades of experience supporting
entrepreneurs’ success in business. While the cost-of-entry is low, we are committed to offering a wealth of support to our franchise owners, with a simple-to-understand, easy-to-scale business model, engaging and ongoing training, operational support out in the field with you, timely marketing, and regular communication. We do all this so you can focus on serving up fast, fresh, affordable meals for your local community.

The initial investment to begin operations of a new Papa Murphy’s franchise ranges from $286,919 to $524,205. While we don’t offer direct access to financing, we do have relationships with third-party lenders who can help you make the right financing decision.Papa Murphy’s franchise Pizza Graphic

Here are some of the most common ways entrepreneurs can secure the funds necessary to open a Papa Murphy’s franchise:

SBA loans

U.S. Small Business Association (SBA) lending has made a strong comeback as the economy has improved, and it is much easier to obtain an SBA loan than it was a few years ago. These are government-backed loans at low-market rates, which eliminates most of the risk for banks.

Advantages: You can finance a percentage of the cost of your business, which allows you to conserve cash. The interest rates tend to be fairly low, there is no prepayment penalty, and you can obtain better loan terms once you have a proven track record.

Things you should know: It can take three months or more to obtain an SBA loan, and the loan also requires 100 percent collateral. If most of your collateral comes from home equity, you may want to consider a home equity loan instead.

Bank Loans

With a bank loan, the bank will provide you with financing to run your business. This loan will have to be repaid over a period of years.

Advantages: A bank loan is a good way to finance a business as lines of credit are helpful to handle cash flow shortages.

Things you should know: Getting a bank loan can be difficult because the bank’s main interest is getting its money back, preferably through the cash flow that your business
generates. Ultimately, the bank will only provide you with funds if your company has a proven track record of success.

Leverage retirement funds tax-free and penalty-free

If you have a 401(k) or an individual retirement account (IRA), it can be converted into a self- directed IRA to fund your business. This financing option became extremely popular during the economic downturn in 2008, when depressed real estate prices eliminated home equity loans as an option for many franchise buyers.

Advantages: Once you set up a self-directed IRA, you can tap into your retirement funds without paying penalties. Since it’s your money, not the bank’s, you don’t have to worry about a long loan approval process. As your business succeeds, you make payments into your retirement account without having to pay interest to a bank. This option also allows you to keep cash in your bank accounts to be available for starting and growing your business.

Things you should know: Your business becomes your retirement plan, which brings risks and rewards. You should be confident that you can beat the stock market by building the value of your business, as well as by avoiding interest payments on a loan.

Credit Unions

Advantages: Because credit unions are nonprofit organizations, they do not have to pay state and federal taxes. As a result, they are able to offer low interest rates for qualified borrowers. Additionally, account holders at credit unions are seen as members and not customers, which means that the credit union may be flexible when it comes to its lending policies.

Things you should know: Since credit unions are often small, business owners not only have to qualify for membership, but should also do their due diligence to ensure the credit union offers the lending service they need. Not all credit unions are the same, and they have their own lending programs and policies in place.

Friends and family

You may have friends or relatives who are willing to invest in your success.

Advantages: They know you, they are typically flexible on repayment terms and they may have expertise that they can offer your business. They may not require collateral.

Things you should know: If the business doesn’t meet expectations, it may strain your relationships. Family and friends may also seek equity in exchange for your investment, which would create a partnership arrangement.

Whichever route you choose, know that Papa Murphy’s is here to support you as a franchise owner every step of the way as you build your business. Want to learn more? Please feel welcome to reach out!


A Papa Murphy’s franchise is a low-cost investment opportunity offering high growth potential. Join this dynamic brand as we expand our footprint across the United States. Initial investment costs range from $286,919 to $524,205, depending on numerous factors, including geographic areas, condition of the premises and construction costs. We have grown to more than 1,300 locations thanks to a business model built for entrepreneurs who are passionate about quality, service, integrity, teamwork, and most of all—pizza.

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