Franchisel.com — FDD Diligence Memo
Papa Murphy's
Generated 2026-04-06 · 2026 FDD · Government-filed source
Papa Murphy's
2026 FDD Diligence Memo
Composite score based on six FDD-derived dimensions.
Sys Health
7
Change
-2
Red Flags & Key Signals
Net unit loss of -30 in reporting period. Declining networks may signal franchisee dissatisfaction or weak economics.
Avg $687,539 from government-filed FDD. Transparent disclosure is a positive signal.
Investment Overview
Items 5, 6, 7Total investment range: Not disclosed. Initial fee: $0. Royalty: —. Marketing fund: —.
Item 19 — Revenue
Item 19 — 2026 FDD (government-filed)Item 19 discloses avg revenue of $687,539 (Annual).
Sample: WeakThe FDD does not specify how many units were included in this figure.
Item 20 — System Health
Item 20 — 2026 FDDSystem contracting — net -30 units in reporting period.
↓ Contracting30 more units closed or left the system than opened.
Total Units
0
Net Growth
-30
Turnover
0%
Year-over-Year Trends
2025 → 2026 FDD2025 FDD
$688,133
2026 FDD (Current)
$687,539
Opened
+0
Closed
-0
Net
-30
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19Net sales (not gross)
This Item 19 reports net sales (after returns/discounts). Gross sales figures from other brands will appear higher — not directly comparable.
Profit not disclosed
Item 19 reports revenue only. No expense breakdown is provided. Profit cannot be determined from this disclosure alone.
Subset of units reported
Item 19 samples may be limited to defined subsets (geographic subset), which affects comparability.
Sample size not specified
The FDD does not state how many units contributed to this figure.
Data is 3 years old
Revenue figures cover 2023 operations — may not reflect current market conditions.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
The FDD does not include audited financial statements. Ask: do you have any visibility into the franchisor's financial health? Have you ever been concerned about the company's stability?
Look for: Even anecdotal signals — changes in leadership, delays in royalty statement processing, reduced marketing fund activity.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Data sources: 2026 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2026 FDD filed with WI DFI (file #640464). Source: 640464-2026-Papa-Murphys.pdf. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.