Financing Program


The loan estimate below can include, but is not limited to, all of the costs as detailed in the FDD dated April, 2017, from Papa Murphy’s International LLC. Per the FDD, the initial investment per single unit can range from $274,620 to $499,246, plus closing costs, interest expense and the SBA guaranty fee and/or loan fees.

Total startup project profile example:

$400,000 – Total Project Costs (leasehold location) –
$(60,000) – Franchisee Cash Injection minimum (15%)
$ 340,000 – Term Loan – SBA 7(a)

Note: For Radius Bank accelerated process, the loan amount cannot exceed $350,000 and leasehold improvements should be no more than $100,000, using above profile example.

This example of financing is for illustrative purposes only. The loan terms above reflect the Radius Bank’s analysis of providing loans that include financing costs not listed in the franchisor’s FDD. Notes:

  • Above costs are inclusive of estimated SBA project costs and $900 packaging fee
  • Includes four months funded interest reserve (with four months interest only payments) and up to $30,000 in working capital
  • The above is based on establishing a single, leased-location



Minimum qualifications:

 Start-UpExpansion &
FICO Score660660660660
Required cash injection (% of project costs)15%Expansion - 10% Remodel: 0-10%25%*Refi:0% Other - TBD
PTLTo be determined based on the project, the strength of the business, outside cash flow, etc.
Business/ownership experienceManagement experience or aptitudeMinimum6 months (ownership)Management experience or aptitudeVaries
Required DSC1.30x projected for Year21.30x projected for Year 2**1.20x last two years1.15x last yearand interim

* Total injection on resales must total 25%. Of this, at least 10% in cash and the remaining 15% can be in the form of a seller’s note on standby for at least the first two years. For purchases where intangible assets are below $500,000, the Bank will consider a lower injection amount. If intangible assets are $500,000 or more, 25% is required.
** In addition to PTL, the existing location covers its debt payments and owners’ personal needs.

Additional Conditions:

  1. Start-up must have a signed LOI
  2. Lease term must be for no less than term of loan
  3. Signed Franchise Agreement
  4. Resale must be approved by Franchisor

For more information, please contact us.