Papa Murphy’s Announces 2017 Development Incentive Programs
January 26 2017 - 9:00AM
Frontier Market Incentive program offers zero
royalties for the first three years of operation and $35,000 for
the opening of each new store in select markets
Today, Papa Murphy’s Holdings, Inc. (NASDAQ:FRSH) announced a new
Growth Market Development Incentive focused on attracting and
partnering with experienced, development-oriented operators that
align with the growing 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. The
company recently announced it is expanding the scope of its
relationship with franchise recruiting advisory firm Franchise
Performance Group. The Company has identified 36 Designated Market
Areas (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. 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.
The incentives are subject to the complete rules and eligibility
requirements of the program at the time of signing. Full program
details are available upon completion and review of the
application. Visit http://www.papamurphysfranchise.com/ to learn
more details and submit an application.
ABOUT PAPA MURPHY'SPapa Murphy's Holdings, Inc.
(Nasdaq:FRSH) is a franchisor and operator of the largest Take ‘n’
Bake pizza brand in the United States, selling fresh, hand-crafted
pizzas ready for customers to bake at home. The company was founded
in 1981 and currently operates more than 1,575 franchised and
corporate-owned fresh pizza stores in 38 states, Canada and United
Arab Emirates. Papa Murphy's core purpose is to bring all families
together through food people love with a goal to create fun,
convenient and fulfilling family dinners. In addition to
scratch-made pizzas, the company offers a growing menu of grab 'n'
go items, including salads, sides and desserts. Order online today
at www.papamurphys.com.
FORWARD-LOOKING STATEMENTS This news release,
as well as other information provided from time to time by Papa
Murphy's Holdings, Inc. or its employees, may contain
forward-looking statements that involve risks and uncertainties
that could cause actual results to differ materially from those
anticipated in the forward-looking statements. You can identify
forward-looking statements by the fact that they do not relate
strictly to historical or current facts. These statements may
include words such as “guidance,” “anticipate,” “estimate,”
“expect,” “forecast,” “project,” “plan,” “intend,” “believe,”
“confident,” “may,” “should,” “can have,” “likely,” “future” and
other words and terms of similar meaning in connection with any
discussion of the timing or nature of future operating or financial
performance or other events.
Forward-looking statements in this press release include
statements relating to franchisee eligibility for incentive
programs, the effects of increased store penetration and brand
awareness, the continued availability of incentive programs, and
expectations regarding frontier market growth. Although the Company
believes any forward-looking statements are based on reasonable
assumptions, you should be aware that many factors could affect our
actual financial results and cause them to differ materially from
those anticipated in any forward-looking statements. Please refer
to the risk factors discussed in the Company’s annual report on
Form 10-K for the fiscal year ended December 28, 2015 and quarterly
reports on Forms 10-Q for the fiscal quarters ended March 28, 2016
and September 26, 2016 (each of which can be found at the SEC’s
website www.sec.gov); each such risk factor is specifically
incorporated into this press release.
Any forward-looking statement made by the Company in this press
release speaks only as of the date on which it is made. The Company
undertakes no obligation to update any forward-looking statement,
whether as a result of new information, future developments or
otherwise.
Investor Contact:
Fitzhugh Taylor, ICR
fitzhugh.taylor@icrinc.com
877-747-7272
Media Contact:
Christine Beggan, ICR
Christine.Beggan@icrinc.com
203-682-8329
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