News

Papa Murphy's entices franchisees with cash incentives

January 27, 2017

Papa Murphy's is launching a growth program to attract franchisees, who will be eligible for more than $75,000 in incentives per store in select, larger markets this year, according to a news release.

Other incentives offered in the program include: 

• No royalties for the first three years of operation, which the chain said equates to a savings of $22,000 annually on average. 
• $35,000 for opening costs, paid for every new store opening in during the initial three years of operation
• And $1,500 monthly rebate for each store opening during the first three years.

"The program is designed to accelerate frontier market growth across the country," CDO Jayson Tipp, said in the news release. "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 under-penetrated markets. The company recently announced it is expanding the scope of its relationship with franchise recruiting advisory firm Franchise Performance Group. Papa Murphy's has identified 36 Designated Market Areas or DMAs as potential markets that may be eligible to receive this incentive.

Papa Murphy's 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. 

The 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 operate stores as well as 34 DMAs adjacent to existing markets.