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Updated RecentlyPapa Murphy's vs Old Chicago Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Papa Murphy's vs Old Chicago including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $286,919 - $524,205 | $1,331,500 - $2,187,000 |
| Franchise Fee | $25,000 | $40,000 |
| Royalty Fee | 5% | 4% |
| Advertising Fee | 2% | 3% |
| Year Founded | 1981 | 1976 |
| Year Franchised | 1982 | 2000 |
| Term Of Agreement | 10 years | - |
| Term Of Agreement | 10 years | - |
| Renewal Fee | $5K | - |
Business Experience Requirements |
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| Experience | - | - |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/No | -/- |
| Start-up Costs | No/Yes | -/- |
| Equipment | No/Yes | -/- |
| Inventory | No/Yes | -/- |
| Receivables | No/No | -/- |
| Payroll | No/No | -/- |
Training & Support |
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| Training | On-The-Job Training: 230 hours Classroom Training: 40 hours | The Old Chicago training department will provide Franchisees, their management team, and staff, comprehensive training programs that combine both restaurant and classroom training. All Franchise management teams will receive seven weeks of in-store training at a designated Old Chicago training restaurant. On-The-Job Training: 350 hours |
| Support | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform | A set of comprehensive manuals are provided to an Old Chicago Franchisee upon the signing of the Operating Agreement. These manuals are designed for easy reference and serve as an authoritative source of information about Old Chicago standard operating policies and procedures. These manuals are frequently updated to reflect Old Chicago's response to the changing needs of today's guests. Purchasing Co-ops Meetings/Conventions Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software |
| Marketing | Co-op Advertising Ad Templates Regional Advertising Social media SEO Email marketing Loyalty program/app | Old Chicago restaurants rely primarily on a Local Restaurant Marketing (LRM) program that allows each store to choose the marketing programs and promotions that match the needs of the individual store's market. Advertising and promotional materials are available at a reasonable cost to Franchisees that support a LRM program. As such we employ our own graphics designer to assist Franchise Partners with their LRM design needs. We also employ a marketing professional to consult with our Franchise Partners. Co-op Advertising Ad Templates National Media Regional Advertising Email marketing Loyalty program/app |
| Operations |
Number of Employees Required to Run: 10
Absentee ownership of franchise is NOT allowed. | - |
Expansion Plans |
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| US Expansion | No | Yes |
| Canada Expansion | No | - |
| International Expansion | No | - |
Company Overviews
About Papa Murphy's
Papa Murphy's Take N' Bake Pizza is the pioneer of the take and bake concept. We are the largest take and bake pizza company in the world. We offer only the freshest and highest quality ingredients with our freshly grated cheeses and our dough that is prepared in house daily. Papa Murphy's offer our products at a low price point, and we also offer our customer the opportunity to cook their pizza when they are ready to eat it.
98% of Papa Murphy's stores are franchised. It is the energy and entrepreneurial spirit of our franchisees that makes Papa Murphy's the innovative and customer centered organization that it is. Without the hard work and dedication of our franchisees we would not have been able to experience the growth and success that we have seen over the years.
Currently franchise units in Arkansas, Arizona, California, Florida, Indiana, Kentucky,
Louisiana, Maryland, Michigan, North Carolina, Oklahoma, South Carolina,
Tennessee, Texas, Virginia, 24 more states, Canada and the Middle East. Please inquire about other states, also.
Veteran Incentives Reduced royalty fee for first three years
About Old Chicago
Opportunity Awaits
After 33 years of company growth, we are now offering a unique opportunity for a select number of entrepreneurs to take our proven brand into new markets.
Old Chicago is a leader in the casual dining pizza segment. We currently have territories available in many highly desirable markets, which presents an exceptional chance to establish our winning concept in choice locations.
WHY CHOOSE OLD CHICAGO?
Adaptable Site Requirements
Old Chicago's brand identity does not rely on a typical "box" to succeed. Our adaptive development strategy and flexible design allow stores to be constructed in many different types of sites, including prototype buildings, conversions/retro-fits, strip center end-cap locations, and non-traditional sites.
Sales Mix Advantage
With approximately 40% of historical system sales from our bar and drink business, Old Chicago's sales mix provides operators with a real opportunity to differentiate themselves from other casual dining concepts. Our high mix of bar sales is one of the main reasons why our stores experience exceptionally low Cost of Goods Sold (COGS). Our 60 company stores finished the year in 2008 with an average COGS of 25.6%.
Brand Strength & Versatility
Our brand has three decades of proven success and a loyal customer base in our existing markets. Old Chicago is a timeless concept that has that rare ability to appeal to a variety of consumers. Many casual dining concepts seem to copy each other in their menus and restaurant "feel". The Old Chicago concept is uniquely different.
Our bars have the rich, dark feel of a "freshly scrubbed joint". Our dining room areas with our new pizza bars really appeal to families and couples.
Broad Customer Appeal
Our bar area, along with our unique guest loyalty program -"The World Beer Tour" appeal to a younger, single customers. They create the high energy levels that have made our bars famous. With thirty beer varieties on tap, and another eighty varieties in bottles, we have created an exciting taste journey for our World Beer Tour members. No matter your age or occupation, there is a tremendous sense of accomplishment when your name goes on a plaque in your home store because you have completed the World Beer Tour.
The total investment necessary to begin operation of an Old Chicago
Restaurant franchised business is between $1,331,500 and $1,957,000.
This includes $98,250 and $135,250 that must be paid to the franchisor
or its affiliates.
The total investment necessary for an Area
Development Franchise includes the investment necessary to begin
operations of one Restaurant, plus a development fee of $50,000, plus an
initial franchise fee deposit of $20,000 multiplied by the number of
Restaurants (excluding the first Restaurant) which you must open.
The estimated total investment necessary to begin operation of an Old Chicago
Area Development Franchise is between $1,401,500 (for two
Restaurants) and $2,187,000 (for ten Restaurants). This includes between
$168,250 and $365,250 that must be paid to the franchisor or its
affiliates.
#299 in Franchise 500 for 2020.