Papa Murphy’s is refranchising its company-owned stores in Colorado to Fresh Take, LLC, an entity owned by existing franchise owners Ryan McCallister, Tyler Ross, and Brad Seymore.
Following the transaction, Fresh Take will operate a total of 28 Papa Murphy’s stores across the state of Colorado. Papa Murphy’s remains focused on refranchising the majority of company-owned stores and expects to operate around 60 company-owned stores by the end of 2018. The cash flow generated from refranchising is expected to be used for debt pay-down.
“Combined, Ryan, Tyler, and Brad have been successful Papa Murphy’s franchise owners for 22 years. Their passion for the brand makes them the ideal franchise owners to grow with,” says Mark Hutchens, executive vice president and chief operating officer of Papa Murphy’s. “We look forward to completing similar refranchising transactions in the coming months as we move towards our goal of returning to a 95 percent franchise mix by 2020.”
“We’re looking forward to growing our Papa Murphy’s portfolio,” McCallister says of Fresh Take. “We’re excited to serve even more Papa Murphy’s customers, empowering them to make delicious, home-baked meals.”
“We believe in the strength of the Papa Murphy’s brand and are proud of our unique and high quality product,” Ross says. “As we expand our reach, we remain committed to providing our customers with an exceptional Papa Murphy’s experience.”
Hutchens adds, “We are confident that as we execute on our refranchising strategy and focus on our asset-light franchise business model, we will improve the capital efficiency of our company and, in turn, grow shareholder value. The financial commitment our existing franchise owners are making as they grow through refranchising demonstrates the strong economic opportunity of Papa Murphy’s.”