Papa Murphy's Uncorks Development Incentive Programs
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Papa Murphy's Uncorks Development Incentive Programs

Papa Murphy's Uncorks Development Incentive Programs

Papa Murphy's is getting aggressive on growth. The brand just announced its new Growth Market Development Incentive focused on attracting and partnering with experienced, development-oriented operators who want to be a part of the brand's values and culture. Qualified franchisees signing area development agreements in select, larger markets through 2017 may be eligible for more than $75,000 per store in financial incentives including:

  • 0% royalties for the first three years of operation on all stores in the market. For the average store, this equates to around $22,000 per year in savings.
  • $35,000 paid by Papa Murphy's to the franchisee/area developer to help fund opening costs. This will be paid upon the opening of every new store during the first three years of operation.
  • $1,500 monthly rebate paid by Papa Murphy's to the franchisee/area developer for each store that opens during the first three years.

"As we continue our expansion, we are pleased to offer compelling financial incentives to franchisees that are interested in pioneering our brand in newer markets," said Jayson Tipp, chief development officer for Papa Murphy's. "The program is designed to accelerate frontier market growth across the country. We know that growing store penetration quickly in markets is the best way to increase awareness - and higher awareness improves performance."

This news comes as Papa Murphy's continues to focus on accelerating unit growth in select underpenetrated markets. They have identified 36 DMAs as potential markets that may be eligible to receive this incentive.

The brand says it will also continue to offer the Growth Market Development Incentive that began in September 2016, which provides a franchise fee reduction of $5,000 per store. Additionally, each store qualifying for this incentive will receive a royalty fee waiver for the first 12 months of operation. Franchisees are required to sign a new multi-store agreement (MSS) or ADA of at least two stores. This incentive is available in 83 DMAs where fewer than 10 stores are required to reach the targeted penetration goal of one store per population of 80,000. These DMAs include 49 markets where Papa Murphy's franchisees currently operate stores as well as 34 DMAs adjacent to existing markets.

Published: January 31st, 2017

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