Papa Murphy's 10-Q 4 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Document - shares	9 Months Ended
	Sep. 28, 2015	Oct. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Papa Murphy's Holdings, Inc.
Entity Central Index Key	1,592,379
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 28, 2015
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-28
Document Fiscal Year Focus	2,015
Amendment Flag	false
Entity Common Stock, Shares Outstanding		16,949,720

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2015	Sep. 29, 2014	Sep. 28, 2015	Sep. 29, 2014
Revenues
Franchise royalties	$ 9,124	$ 8,965	$ 29,557	$ 28,349
Franchise and development fees	1,123	1,088	3,092	3,119
Company-owned store sales	17,604	11,626	52,927	35,121
Lease and other	281	490	845	2,543
Total revenues	28,132	22,169	86,421	69,132
Store operating costs:
Cost of food and packaging	6,409	4,667	18,942	13,756
Compensation and benefits	4,918	3,000	13,994	8,935
Advertising	1,806	1,286	5,227	3,531
Occupancy	1,210	715	3,386	2,049
Other store operating costs	2,061	1,069	5,362	3,145
Selling, general and administrative	6,038	5,915	21,083	22,938
Depreciation and amortization	2,641	2,007	7,380	5,815
Loss (gain) on disposal of property and equipment	4	(15)	66	27
Total costs and expenses	25,087	18,644	75,440	60,196
Operating Income	3,045	3,525	10,981	8,936
Interest expense	1,137	1,539	3,429	6,966
Interest income	(4)	(14)	(23)	(67)
Loss on early retirement of debt	0	(3,428)	0	(4,619)
Loss on disposal or impairment of investments	0	0	4,500	0
Other expense, net	44	63	90	118
Income (Loss) Before Income Taxes	1,868	(1,491)	2,985	(2,700)
Provision for (benefit from) income taxes	746	(703)	1,206	(1,124)
Net Income (Loss)	1,122	(788)	1,779	(1,576)
Net loss attributable to noncontrolling interests	0	0	500	0
Net Income (Loss) Attributable to Papa Murphy's	$ 1,122	$ (788)	$ 2,279	$ (1,576)
Earnings (loss) per share of common stock
Basic (loss) earnings per share (usd per share)	$ 0.07	$ (0.05)	$ 0.14	$ (0.35)
Diluted (loss) earnings per share (usd per share)	$ 0.07	$ (0.05)	$ 0.13	$ (0.35)
Weighted average common stock outstanding
Basic (in shares)	16,672,327	16,584,724	16,635,400	10,603,339
Diluted (in shares)	16,919,504	16,584,724	16,893,575	10,603,339

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 28, 2015	Dec. 29, 2014
Current Assets
Cash and cash equivalents	$ 5,483	$ 5,056
Accounts receivable, net	2,692	5,661
Notes receivable, net	71	62
Inventories	840	640
Prepaid expenses and other current assets	3,484	3,423
Advertising cooperative assets, restricted	284	149
Current deferred tax asset	1,969	1,338
Total current assets	14,823	16,329
Property and equipment, net	19,208	12,120
Notes receivable, net of current portion	168	225
Goodwill	106,740	101,082
Trade name and trademarks	87,002	87,002
Definite-life intangibles, net	42,683	44,515
Other assets	289	4,191
Total assets	270,913	265,464
Current Liabilities
Accounts payable	8,396	3,057
Accrued expenses and other current liabilities	9,217	9,600
Advertising cooperative liabilities	375	253
Current portion of unearned franchise and development fees	1,985	2,848
Current portion of long-term debt	3,500	2,800
Total current liabilities	23,473	18,558
Long-term debt, net of current portion	108,156	110,715
Unearned franchise and development fees, net of current portion	656	640
Deferred tax liability	41,668	42,069
Other long-term liabilities	2,263	1,740
Total liabilities	$ 176,216	$ 173,722
Commitments and contingencies (Note 15)
Equity
Preferred stock, value issued	$ 0	$ 0
Common stock, value issued	169	169
Additional paid-in capital	118,473	117,354
Receivable from Shareholders or Affiliates for Issuance of Capital Stock	100	100
Accumulated deficit	(23,845)	(26,125)
Total Papa Murphy’s Holdings, Inc. shareholders’ equity	94,697	91,298
Noncontrolling interests	0	444
Total equity	94,697	91,742
Total liabilities and equity	$ 270,913	$ 265,464

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 28, 2015	Dec. 29, 2014	May. 07, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts, current	$ 30	$ 60
Preferred stock, par value per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	15,000,000	15,000,000
Preferred stock, shares issued	0	0
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000	200,000,000
Common stock, shares issued	16,940,228	16,944,308

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 28, 2015	Sep. 29, 2014
Operating Activities
Net income (loss)	$ 1,779	$ (1,576)
Net loss attributable to noncontrolling interests	500	0
Net income (loss) attributable to Papa Murphy’s	2,279	(1,576)
Adjustments to reconcile to cash from operating activities
Depreciation and amortization	7,380	5,815
Loss on disposal of property and equipment	(66)	(27)
Loss on early retirement of debt	0	(4,619)
Bad debt expense	325	12
Non-cash employee equity compensation	858	1,739
Amortization of deferred finance charges	241	470
Loss on impairment of cost-method investment	4,000	0
Change in operating assets and liabilities
Accounts receivable	2,652	(2,778)
Prepaid expenses and other current assets	(101)	867
Unearned franchise and development fees	(847)	(76)
Accounts payable	2,360	(21)
Accrued expenses and other current liabilities	(356)	(2,385)
Deferred taxes	(1,032)	(1,217)
Other assets and liabilities	112	61
Cash from operating activities	17,937	5,557
Investing Activities
Acquisition of property and equipment	(5,502)	(3,036)
Acquisition of stores, less cash acquired	(9,524)	(647)
Proceeds from sale of stores	0	153
Issuance of notes receivable	250	0
Payments received on notes receivable	49	960
Investment in cost-method investee	(500)	(1,500)
Cash from investing activities	(15,727)	(4,070)
Financing Activities
Proceeds from issuance of long-term debt	0	112,000
Payments on long-term debt	2,100	169,900
Issuance of common stock, net of underwriting fees	0	59,675
Repurchases of common stock	(10)	(1,518)
Debt issuance and modification costs, including prepayment penalties	0	(2,626)
Payments received on subscription receivables	0	1,097
Costs associated with initial public offering	0	3,490
Proceeds from exercise of stock options	271	0
Investment by noncontrolling interest holders	56	167
Cash from financing activities	(1,783)	(4,595)
Net change in cash and cash equivalents	427	(3,108)
Cash and Cash Equivalents, beginning of year	5,056	3,705
Cash and Cash Equivalents, end of period	5,483	597
Supplemental Disclosures of Cash Flow Information
Cash paid during the period for interest	2,516	6,667
Cash paid during the period for income taxes	2,178	110
Deferred offering costs paid in 2013 reclassified to equity	0	1,537
Noncash Supplemental Disclosures of Investing and Financing Activities
Issuance of note payable for acquisition of stores	0	2,900
Acquisition of property and equipment in accounts payable	$ 3,206	$ 310

Description of Business and Bas

Description of Business and Basis of Presentation	9 Months Ended
	Sep. 28, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Significant Accounting Policies	Description of business Papa Murphy’s Holdings, Inc. (“Papa Murphy’s” or the “Company”), together with its subsidiaries, is a franchisor and operator of a Take ‘N’ Bake pizza chain. The Company franchises the right to operate Take ‘N’ Bake pizza franchises and operates Take ‘N’ Bake pizza stores owned by the Company. As of September 28, 2015 , the Company had 1,500 stores consisting of 1,466 domestic stores ( 1,340 franchised stores and 126 Company-owned stores) across 38 states, plus 34 franchised stores in Canada and the United Arab Emirates. Substantially all of the Company’s revenues are derived from retail sales of pizza and other food and beverage products to the general public by Company-owned stores and the collection of franchise royalties and fees associated with franchise and development rights. Public offering and stock split On May 7, 2014 , the Company completed an initial public offering (the “ IPO ”) of 5,833,333 shares of common stock at a price to the public of $11.00 per share. The Company received net proceeds from the offering of approximately $54.6 million after offering fees and expenses. The net proceeds, along with additional cash on hand, were used to repay $55.5 million of the Company’s loans outstanding under the Company’s then existing senior secured credit facility, after which the Company had $112.1 million outstanding under the facility with the revolver undrawn. Immediately prior to the IPO , the Company amended and restated its certificate of incorporation to reflect the conversion of all outstanding Series A Preferred Stock and Series B Preferred Stock (together, the “ Preferred Shares ”) to 3,054,318 shares of common stock. In connection with the IPO , on May 1, 2014, the Company amended its certificate of incorporation to effect a 2.2630 for 1 stock split of its common stock. As a result of the stock split, all previously reported share and option amounts in these interim unaudited condensed consolidated financial statements and accompanying notes have been retrospectively restated to reflect the stock split. After the conversion of the Preferred Shares and the stock split, but before the shares were sold in the IPO , the Company had 11,134,070 common shares outstanding. Basis of presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “ SEC ”). Accordingly, they do not include all information and footnotes required by generally accepted accounting principles in the United States (“ GAAP ”) for complete financial statements. In the Company’s opinion, all necessary adjustments, consisting of only normal recurring adjustments, have been made for the fair presentation of the results of the interim periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year. The accompanying interim unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 29, 2014 . Principles of consolidation The interim unaudited condensed consolidated financial statements include the accounts of Papa Murphy’s Holdings, Inc., its subsidiaries and certain entities which the Company consolidates as variable interest entities (“ VIE s”). The Company reports noncontrolling interests in consolidated entities as a component of equity separate from shareholders’ equity. All significant intercompany transactions and balances have been eliminated. Throughout the interim unaudited condensed consolidated financial statements and the related notes thereto, “Papa Murphy’s” and “the Company” refer to Papa Murphy’s Holdings, Inc. and its consolidated subsidiaries. Fiscal year The Company uses a 52- or 53-week fiscal year, ending on the Monday nearest to December 31. Fiscal years 2015 and 2014 are 52-week years. All three month periods presented herein contain 13 weeks. All references to years and quarters relate to fiscal periods rather than calendar periods. References to 2015 and 2014 are references to fiscal years ending December 28, 2015 , and ended December 29, 2014 , respectively. Recent Accounting Pronouncements In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (“ ASU 2015-03 ”). This update requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs were not affected by this update. The Company early-adopted ASU 2015-03 during the three months ended June 29, 2015. Applying the adoption retroactively, the Company reclassified unamortized debt issuance costs of $1.2 million as of September 28, 2015 , and $1.5 million as of December 29, 2014 , from Deferred finance charges, net to Long-term debt, net of current portion on the Condensed Consolidated Balance Sheets . Adoption of this standard did not affect the Company’s results of operations or cash flows in either the current or previous interim and annual reporting periods. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ ASU 2014-09 ”), a new standard to achieve a consistent application of revenue recognition within the U.S., resulting in a single revenue model to be applied by reporting companies under GAAP . ASU 2014-09 is effective for the Company in the first quarter of fiscal 2017 with early adoption prohibited. The standard is required to be applied retroactively to each prior reporting period presented or retroactively with the cumulative effect of initially applying the standard recognized at the date of initial application. The Company has not yet selected a transition method. The standard will not affect the Company's recognition of revenue from Company-owned restaurants or its recognition of franchise royalties, which are based on a percentage of franchise sales. The Company is continuing to evaluate the effect the adoption of this standard will have on the recognition of other less significant revenue transactions such as franchise and development fees as well as refranchising of Company-owned restaurants.

Acquisitions (Notes)

Acquisitions (Notes)	9 Months Ended
	Sep. 28, 2015
Business Combinations [Abstract]
Acquisitions	Investment and Disposal The Company, through a non-wholly owned subsidiary, Project Pie Holdings, LLC (“ PPH ”), made investments in Project Pie, LLC (“ Project Pie ”) in the form of Series A Convertible Preferred Units (the “ Preferred Units ”). Project Pie is a fast casual custom-pizza restaurant chain with stores located throughout the United States, the Philippines and Scotland. In connection with its investment in Project Pie , PPH had committed as of December 29, 2014 , to fund, upon demand, up to an additional $0.5 million prior to December 2016 through the purchase of additional Series A Preferred Units of Project Pie . During the nine months ended September 28, 2015 , PPH invested the additional $0.5 million and satisfied its commitment to Project Pie . The Company disposed of its ownership interests in PPH on June 29, 2015. Prior to the Company’s disposal of its ownership interests in PPH , it recorded a pre-tax impairment of $4.5 million to its investment in Project Pie during the three months ended June 29, 2015. Earlier in 2015, the Company determined that Project Pie was a VIE as a result of Project Pie having insufficient equity at risk, but that the Company did not have a variable interest in Project Pie and did not have control. The Company did not account for its investment in Project Pie as an equity method investment since the Company’s investment was in preferred units with subordination characteristics substantially different from the common units and were determined not to be in-substance common stock. The Company’s investment was classified as a cost method investment in Other assets . Acquisitions in 2015 M2AD Acquisition On March 9, 2015, Papa Murphy’s Company Stores, Inc. (“ PMCSI ”), a wholly-owned subsidiary of the Company, acquired certain assets used in the operation of six Papa Murphy’s stores in the Seattle, Washington, area from M2AD Management, Inc., the previous operator of the six Papa Murphy’s stores (the “ M2AD Acquisition ”). Transaction costs of $30,000 associated with the M2AD Acquisition were recognized as Other store operating costs in the Condensed Consolidated Statements of Operations . The total purchase price was $4.1 million , which included a holdback of $6,000 . As of September 28, 2015 , PMCSI retained $5,000 of the holdback amount. The M2AD Acquisition was funded through existing cash and was accounted for using the acquisition method of accounting, whereby operating results subsequent to the acquisition date are included in the interim unaudited condensed consolidated financial statements . The fair values of the assets acquired are summarized below (in thousands): Cash and cash equivalents $ 5 Inventories 39 Prepaid expenses and other current assets 38 Property and equipment 406 Reacquired franchise rights 1,139 Asset retirement obligation (75 ) Total identifiable net assets acquired 1,552 Goodwill 2,554 Total consideration $ 4,106 Reacquired franchise rights have weighted average useful lives of 6.6 years . Goodwill represents the excess of the purchase price over the net tangible and intangible assets acquired and is expected to be fully deductible for income tax purposes. This goodwill is primarily attributable to the acquired customer bases and, to a lesser extent, economies of scale expected from combining the operations of the acquired entities with the operations of the Company. Unaudited pro forma information —The following unaudited pro forma consolidated revenues and net income (loss) of the Company give effect to the M2AD Acquisition as if it had occurred as of the beginning of 2014 : Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Pro forma revenues $ 28,132 $ 23,333 $ 87,500 $ 72,868 Pro forma net income (loss) $ 1,122 $ (808 ) $ 2,311 $ (1,544 ) The pro forma information presented in this note includes adjustments for amortization of acquired intangible assets, depreciation of acquired property and equipment and income tax expense. The pro forma information is presented for informational purposes and may not be indicative of the results that would have been obtained had the M2AD Acquisition actually occurred at the beginning of 2014 , nor is it intended to be indicative of future operating performance. Revenues and net income from the acquired stores from the closing date of the M2AD Acquisition included in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 28, 2015 , are as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 28, 2015 Revenues $ 1,259 $ 2,824 Net income 74 188 Other Acquisitions PMCSI also acquired all of the assets of 16 stores through seven individually immaterial acquisitions during the nine months ended September 28, 2015 : eight stores in Tennessee, three in Washington, two in Texas, one in Idaho, one in Oregon, and one in Colorado. The Tennessee stores were acquired on January 26, 2015, the Idaho store on January 12, 2015, the Oregon store on March 2, 2015, the Texas stores on March 9, 2015 and July 27, 2015, respectively, the Colorado store on May 4, 2015, and the Washington stores on May 11, 2015 (collectively, the “ Other Acquisitions ”). The Company incurred transaction costs of $31,000 associated with the Other Acquisitions that were recognized as Other store operating costs in the Condensed Consolidated Statements of Operations . The aggregate purchase price for the Other Acquisitions was approximately $5.4 million , which included holdbacks totaling $84,000 in the aggregate. As of September 28, 2015 , PMCSI retained $13,000 of the aggregate holdback amount. The Other Acquisitions were funded through existing cash and were accounted for using the acquisition method of accounting, whereby operating results subsequent to the acquisition date are included in the interim unaudited condensed consolidated financial statements . The fair values of the assets acquired are summarized below (in thousands): Cash and cash equivalents $ 9 Inventories 81 Prepaid expenses and other current assets 67 Property and equipment 1,280 Reacquired franchise rights 1,041 Asset retirement obligation (176 ) Total identifiable net assets acquired 2,302 Goodwill 3,104 Total consideration $ 5,406 Reacquired franchise rights have weighted average useful lives of 3.4 years . Goodwill represents the excess of the purchase price over the net tangible and intangible assets acquired and is expected to be fully deductible for income tax purposes. This goodwill is primarily attributable to the acquired customer bases and, to a lesser extent, economies of scale expected from combining the operations of the acquired entities with the operations of the Company. Unaudited pro forma information —The following unaudited pro forma consolidated revenues and net income (loss) of the Company give effect to the Other Acquisitions as if they had occurred as of the beginning of 2014 : Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Pro forma revenues $ 28,158 $ 23,906 $ 88,092 $ 74,492 Pro forma net income (loss) $ 1,125 $ (840 ) $ 2,296 $ (1,639 ) The pro forma information presented in this note includes adjustments for amortization of acquired intangible assets, depreciation of acquired property and equipment and income tax expense. The pro forma information is presented for informational purposes and may not be indicative of the results that would have been obtained had the Other Acquisitions actually occurred at the beginning of 2014 , nor is it intended to be indicative of future operating performance. Revenues and net loss from the acquired stores from the closing date of the Other Acquisitions included in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 28, 2015 , are as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 28, 2015 Revenues $ 1,929 $ 4,306 Net loss (76 ) (197 )

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	9 Months Ended
	Sep. 28, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following: (in thousands) September 28, 2015 December 29, 2014 Prepaid media development costs (1) $ 238 $ 593 Prepaid rents and insurance 1,277 620 POS software licenses for resale 1,175 1,800 Other 794 410 Total prepaid expenses and other current assets $ 3,484 $ 3,423 (1) Prepaid media development costs represent costs incurred for advertisements that have not aired. The Company recognizes software license revenue upon the resale of Point of Sale (“ POS ”) software licenses to franchise owners at cost. The income from the sale is included in Lease and other revenues and the related expense is recorded in Selling, general and administrative costs on the Condensed Consolidated Statements of Operations . POS software license revenue during the periods reported was as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 POS software license revenue $ 258 $ 444 $ 559 $ 2,370

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 28, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment	Property and equipment are net of accumulated depreciation of $12.6 million and $9.3 million at September 28, 2015 , and December 29, 2014 , respectively. Depreciation expense during the periods reported was as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Depreciation expense $ 1,288 $ 747 $ 3,367 $ 2,079

Goodwill

Goodwill	9 Months Ended
	Sep. 28, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	The following summarizes changes to the Company’s goodwill, by reportable segment: (in thousands) DOMESTIC COMPANY STORES DOMESTIC FRANCHISE TOTAL Balance at December 29, 2014 $ 19,536 $ 81,546 $ 101,082 Acquisitions 5,658 — 5,658 Balance at September 28, 2015 $ 25,194 $ 81,546 $ 106,740 There is no goodwill associated with the International Segment. The Company has determined that during the three months ended September 28, 2015 , there were no triggering events that would require an updated impairment review.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 28, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible assets are net of accumulated amortization of $21.7 million and $19.3 million as of September 28, 2015 , and December 29, 2014 , respectively. Amortization expense during the periods reported was as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Amortization expense $ 1,353 $ 1,260 $ 4,013 $ 3,736

Notes Receivable

Notes Receivable	9 Months Ended
	Sep. 28, 2015
Receivables [Abstract]
Notes Receivable	Notes receivable consist of the following: (in thousands) September 28, 2015 December 29, 2014 Note maturing in 2020 bearing interest at 9.0% and collateralized by store assets. $ 239 $ 287 Total notes receivable 239 287 Less current portion (71 ) (62 ) Notes receivable, net of current portion $ 168 $ 225

Financing Arrangements

Financing Arrangements	9 Months Ended
	Sep. 28, 2015
Debt Disclosure [Abstract]
Financing Arrangements	Long-term debt consists of the following: (in thousands) September 28, 2015 December 29, 2014 2014 Credit Facility Term loan $ 109,900 $ 112,000 Revolving line of credit — — Notes payable 3,000 3,000 Total principal amount of long-term debt 112,900 115,000 Unamortized debt issuance costs (1,244 ) (1,485 ) Total long-term debt 111,656 113,515 Less current portion (3,500 ) (2,800 ) Total long-term debt, net of current portion $ 108,156 $ 110,715 2014 senior secured credit facility On August 28, 2014, PMI Holdings, Inc., a wholly-owned subsidiary of the Company, entered into a $132.0 million senior secured credit facility (the “ 2014 Credit Facility ”) consisting of a $112.0 million term loan and a $20.0 million revolving credit facility, which includes a $2.5 million letter of credit subfacility and a $1.0 million swing-line loan subfacility. The term loan and any loans made under the revolving credit facility mature in August 2019 . As of September 28, 2015 , the 2014 Credit Facility bore interest under the LIBOR rate option at 3.45% . With a maturity date of over one year from September 28, 2015 , balances outstanding under the 2014 Credit Facility are classified as non-current on the Condensed Consolidated Balance Sheets , except for mandatory, minimum term loan amortization payments due on the last day of each fiscal quarter. Minimum term loan amortization payments are $0.7 million , increasing to $1.4 million in the third fiscal quarter of 2016. The weighted average interest rate for all borrowings under our 2014 Credit Facility for the third quarter of 2015 was 3.45% . 2013 senior secured credit facility In August 2014, the borrowings under the 2014 Credit Facility refinanced the $177.0 million senior secured credit facility entered into in October 2013 (the “ 2013 Credit Facility ”), which included a $167.0 million senior secured term loan and a $10.0 million revolving credit facility, including a $2.5 million letter of credit subfacility. On May 7, 2014 , the Company prepaid $55.5 million of its long-term debt under the 2013 Credit Facility in connection with the IPO . A proportionate share of deferred financing costs of $1.2 million was expensed as a Loss on early retirement of debt on the Company’s Condensed Consolidated Statements of Operations at the time of this debt prepayment. Notes payable PMCSI has a $3.0 million note payable which bears interest at 5% and matures in December 2018 . This note is subordinated to the 2014 Credit Facility .

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 28, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurement	The Company determines the fair value of assets and liabilities based on the price that would be received to sell the asset or paid to transfer the liability to a market participant. GAAP defines a fair value hierarchy that prioritizes the assumptions used to measure fair value. The three levels of the fair value hierarchy are defined as follows: ▪ Level 1 — Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access. ▪ Level 2 — Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data. ▪ Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs. The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis: September 28, 2015 December 29, 2014 (in thousands) CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE FAIR VALUE MEASUREMENTS Financial assets Notes receivable (1) $ 239 $ 242 $ 287 $ 302 Level 3 Cost-method investments (2) — — 4,000 5,055 Level 3 Financial liabilities Long-term debt, including current portion thereof (3) 112,900 114,100 115,000 113,880 Level 3 (1) The fair value of the notes receivable was estimated primarily using a discounted cash flow method based on a discount rate, reflecting the applicable credit spread. (2) The fair value of cost-method investments was estimated primarily using a discounted cash flow method based on a discount rate, reflecting the applicable credit spread. (3) The fair value of long-term debt was estimated using a discounted cash flow method based on a discount rate, reflecting the applicable credit spread. Financial instruments not included in the table above consist of cash and cash equivalents, accounts receivable and accounts payable. The fair value of cash and cash equivalents, accounts receivable and accounts payable approximates carrying value because of the short-term nature of the accounts.

Accrued and Other Liabilities

Accrued and Other Liabilities	9 Months Ended
	Sep. 28, 2015
Payables and Accruals [Abstract]
Accrued and Other Liabilities	Accrued and other liabilities consist of the following: (in thousands) September 28, 2015 December 29, 2014 Accrued compensation and related costs 3,988 3,670 Gift cards and certificates payable 1,989 2,912 Accrued interest and non-income taxes payable 693 745 Convention fund balance 746 271 Advertising and development fund 5 507 Unearned product rebates 1,407 791 Other 389 704 $ 9,217 $ 9,600

Income Taxes

Income Taxes	9 Months Ended
	Sep. 28, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Information on the Company’s income taxes for the periods reported is as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Provision for (benefit from) income taxes $ 746 $ (703 ) $ 1,206 $ (1,124 ) Income (loss) before income taxes 1,868 (1,491 ) 2,985 (2,700 ) Effective income tax rate 39.9 % 47.1 % 40.4 % 41.6 % The effective income tax rate for the three months ended September 28, 2015 , includes the effect of certain permanent differences between tax reporting purposes and financial reporting purposes and the relative impact of those differences on a small quarterly income. The effective income tax rate for the three months ended September 29, 2014 , includes the effect of certain permanent differences between tax reporting purposes and financial reporting purposes and the relative impact of those differences on a small quarterly loss. The effective income tax rate for the first nine months of 2015 includes the effect of a discrete adjustment for the cumulative share-based compensation expense adjustment for certain awards previously considered unlikely to vest. The effective tax rate for the first nine months ended September 29, 2014 , includes the effect of a separate unfavorable discrete adjustment for an accelerated restricted stock vesting event recorded in early 2014.

Shareholders_ Equity

Shareholders’ Equity	9 Months Ended
	Sep. 28, 2015
Equity [Abstract]
Shareholders’ Equity	Preferred stock Prior to the IPO , the Company’s preferred stock consisted of Series A Preferred Shares and Series B Preferred Shares. The Preferred Shares had a cumulative preferred dividend of 6.00% per year based on an original liquidation value of $36.68 per share. Upon liquidation of the Company, the holders of the Preferred Shares were entitled to receive the unpaid liquidation value plus accreted dividends before any distribution could be made to the holders of common stock. In addition, the Preferred Shares participated in 20% of all remaining earnings if distributed to common stockholders. The unpaid liquidation value of the Series A and Series B Preferred Shares was $21.14 and $26.80 per share, respectively, as of the IPO . At the IPO , the Preferred Shares were converted into 3,054,318 shares of common stock. Noncontrolling interests The Company received the following additional investments by noncontrolling interest holders in PPH during the periods reported: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Additional investment by noncontrolling interest holders in PPH $ — $ — $ 56 $ 167

Share-based Compensation

Share-based Compensation	9 Months Ended
	Sep. 28, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation	In May 2010, the Company’s Board of Directors approved the 2010 Amended Management Incentive Plan (the “ 2010 Plan ”). In May 2014, the Company’s Board of Directors adopted the 2014 Equity Incentive Plan (the “ 2014 Plan ,” and together with the 2010 Plan , the “ Incentive Plans ”). With the adoption of the 2014 Plan , the Company has discontinued selling stock and issuing awards under the 2010 Plan , but stock previously purchased and awards previously granted under the 2010 Plan remain outstanding. The Incentive Plans reserve 2,116,747 common shares for equity incentive awards, which can be awarded as incentive stock options, non-qualified stock options, restricted stock awards, and unrestricted stock awards. Under the Incentive Plans , the Company has awarded 584,017 and 610,084 shares of restricted common stock to eligible employees as of September 28, 2015 , and December 29, 2014 , respectively. In addition, the Company has issued 1,051,929 and 945,149 stock options under the Incentive Plans to eligible employees as of September 28, 2015 , and December 29, 2014 , respectively. Restricted common shares Information with respect to restricted stock activity is as follows: Number of Shares of Restricted Common Stock Time Vesting Performance Vesting Weighted Average Sale/Grant Date Fair Value Per Share Unvested, December 29, 2014 127,650 215,556 $ 2.27 Granted 7,877 — 19.05 Vested (70,930 ) — 1.94 Repurchased (7,542 ) (29,041 ) 0.70 Unvested, September 28, 2015 57,055 186,515 $ 3.15 The weighted average fair value of share-based compensation awards granted and the fair values of awards granted and vested during the period were as follows: Three Months Ended Nine Months Ended (in thousands, except per share amounts) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Weighted average grant date fair value per share $ 19.41 $ 8.80 $ 19.05 $ 8.80 Total fair value of shares granted 60 60 150 60 Total fair value of shares vested 86 26 137 458 Stock options Information with respect to stock option activity is as follows: Number of Shares Subject to Options Time Vesting Performance Weighted Weighted Aggregate Outstanding, December 29, 2014 722,307 222,842 $ 11.16 Granted 192,000 — 13.43 Exercised (24,626 ) — 11.00 Forfeited (38,233 ) (22,361 ) 11.76 Outstanding, September 28, 2015 851,448 200,481 $ 11.55 8.7 years $ 3,516 Exercisable, September 28, 2015 428,646 — $ 11.19 8.6 years $ 1,588 Vested and expected to vest at September 28, 2015 788,028 170,409 $ 11.52 8.7 years $ 3,227 Fair value information for options granted and vested and the intrinsic value of options exercised during the periods reported are as follows: Three Months Ended Nine Months Ended (in thousands, except per share amounts) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Weighted average grant date fair value per share N/A N/A $ 5.41 $ 4.27 Total fair value of awards granted $ — $ — 1,039 4,151 Total fair value of awards vested 23 87 346 1,519 Total intrinsic value of options exercised 121 — 154 — N/A = not applicable Compensation cost and valuation Total compensation costs recognized in connection with the Incentive Plans during the periods reported were as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Stock compensation expense $ 202 $ 193 $ 858 $ 1,738 Associated income tax benefits 64 68 282 578 As of September 28, 2015 , the total unrecognized stock-based compensation expense, net of estimated forfeitures, was $2.8 million , with $1.9 million associated with time vesting awards and $0.9 million associated with performance vesting awards. The remaining weighted average contractual life for unrecognized stock-based compensation expense was 3.4 years as of September 28, 2015 . Prior to the IPO , the valuation of the Company’s common stock and Preferred Shares was based on the principles of option-pricing theory. This approach is based on modeling the value of the various components of an entity’s capital structure as a series of call options on the proceeds expected from the sale of the entity or the liquidation of its assets at some future date. Specifically, each of the preferred and common equity is modeled as a call option on the aggregate value of the Company with an exercise price equal to the liquidation preferences of the more senior securities. Both the income and market approaches were considered when estimating the fair value of the Company. The Company’s valuation was performed under both an IPO and non- IPO scenario with each value weighted based on an estimated probability of occurrence. The key inputs required to calculate the value of the common stock using the option-pricing model included the risk free rate, the volatility of the underlying assets, and the estimated time until a liquidation event. The Company applied a marketability discount to the value of common stock based on facts and circumstances at each valuation date. During the reported periods prior to the IPO , the Company assumed the following: Three Months Ended (1) IPO Scenario Non-IPO Scenario Risk free rate 0.36% 0.36% Volatility of the underlying assets 45% 45% Estimated time until a liquidation event 0.58 years 1.75 years Marketability discount—common stock 10% 25% Marketability discount—preferred stock 8% 15% Weight applied to scenario 95% 5% (1) The last pre-IPO valuation of the Company was performed as of March 31, 2014. The fair value of the stock option awards granted during the periods reported was estimated with the following weighted-average assumptions. Three Months Ended Nine Months Ended September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Risk free rate N/A N/A 1.9% 2.0% Expected volatility N/A N/A 37.9% 35.0% Expected term N/A N/A 6.3 years 6.3 years Expected dividend yield N/A N/A 0.0% 0.0% N/A = not applicable

Earnings per Share (EPS)

Earnings per Share (EPS)	9 Months Ended
	Sep. 28, 2015
Earnings Per Share [Abstract]
Earnings per Share (EPS)	The number of shares and earnings per share (“ EPS ”) data for all periods presented are based on the historical weighted-average shares of common stock outstanding. Prior to the IPO , the Company’s cumulative preferred stockholders were entitled to participate in 20% of all remaining earnings or dividends if distributed to common stockholders. As such, the Company calculated EPS using the two-class method. The two-class method determines EPS for common stock and participating securities according to dividends and dividend equivalents and their respective participation rights in undistributed earnings. Basic EPS is calculated by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted EPS is calculated using income available to common stockholders divided by diluted weighted-average shares of common stock outstanding during each period, which includes unvested restricted common stock and outstanding stock options. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect. The following table sets forth the computations of basic and dilutive EPS : Three Months Ended Nine Months Ended (in thousands, except per share data) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Earnings: Net income (loss) $ 1,122 $ (788 ) $ 1,779 $ (1,576 ) Less: Net loss attributable to noncontrolling interests — — 500 — Net income (loss) attributable to Papa Murphy's 1,122 (788 ) 2,279 (1,576 ) Less: cumulative Series A and B Preferred dividends — — — (2,150 ) Net income (loss) available to common shareholders $ 1,122 $ (788 ) $ 2,279 $ (3,726 ) Shares: Weighted average common shares outstanding 16,672 16,585 16,635 10,603 Dilutive effect of restricted equity awards (1) 247 — 258 — Diluted weighted average number of shares outstanding 16,920 16,585 16,894 10,603 Earnings (loss) per share: Basic earnings (loss) per share $ 0.07 $ (0.05 ) $ 0.14 $ (0.35 ) Diluted earnings (loss) per share $ 0.07 $ (0.05 ) $ 0.13 $ (0.35 ) (1) The Company’s potential common stock instruments such as stock options and restricted stock were not included in the computation of diluted EPS for the three and nine months ended September 29, 2014 as the effect of including these shares in the calculation would have been anti-dilutive. For the three months ended September 28, 2015 , and September 29, 2014 , an aggregated total of 70,000 shares and 128,000 shares, respectively, have been excluded from the diluted income per share calculation because their effect would have been anti-dilutive. For the nine months ended September 28, 2015 , and September 29, 2014 , an aggregated total of 69,000 shares and 170,000 shares, respectively, have been excluded from the diluted income per share calculation because their effect would have been anti-dilutive.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 28, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Operating lease commitments The Company leases facilities and various office equipment under non-cancelable operating leases which expire through December 2025 . Lease terms for its store units are generally for five years with renewal options and generally require the Company to pay a proportionate share of real estate taxes, insurance, common area, and other operating costs. The Company has entered into operating leases that it has subleased to three franchised stores. These operating leases have minimum base rent terms, contingent rent terms if individual franchised store sales exceed certain levels and have terms expiring on various dates from May 2020 to October 2020 . Lease guarantees The Company is the guarantor for operating leases of eight franchised stores that have terms expiring on various dates from August 2016 to July 2020 . The obligations from these leases will generally continue to decrease over time as the leases expire. The applicable franchise owners continue to have primary liability for these operating leases. As of September 28, 2015 , the Company does not believe it is probable it would be required to perform under the outstanding guarantees. Legal proceedings The Company is currently subject to litigation with a group of our franchise owners, initially filed by twelve franchise owners and their individual stakeholders on April 11, 2014, in the Superior Court in Clark County, Washington, claiming that the Company misrepresented sales volumes, made false representations to them and charged excess advertising fees, among other things, and alleging violation of the Washington Franchise Investment Protection Act, fraud, negligent misrepresentation and breach of contract, and seeking declaratory and injunctive relief, as well as monetary damages. On June 18, 2014, an additional 16 franchise owners and their individual stakeholders, represented by the same counsel as the plaintiffs described above, filed a lawsuit with the Superior Court in Clark County, Washington , making essentially the same claims and allegations as made in the lawsuit described above and seeking declaratory and injunctive relief, as well as monetary damages. The court consolidated the two lawsuits into a single case. The Company reached resolution with eleven of the franchise owners (and those owners’ individual stakeholders) involved in the consolidated lawsuits, and their claims have either been dismissed or dismissal is pending. The Company believes the allegations in these consolidated lawsuits lack merit and, for those plaintiffs with whom the Company is unable to reach resolution, the Company will continue to vigorously defend its interests, including by asserting a number of affirmative defenses and, where appropriate, counterclaims. The Company provides no assurance that it will be successful in its defense of these lawsuits; however, the Company does not currently expect the cost of resolving them to have a material adverse effect on its consolidated financial position, results of operations, or cash flows. On May 8, 2015, the Company was named as a defendant in a class action lawsuit in United States District Court for the Western District of Washington claiming a violation of the federal Telephone Consumer Protection Act, which prohibits companies from making telemarketing calls to numbers listed in the Federal Do-Not-Call Registry and imposes other obligations and limitations on making phone calls and sending text messages to consumers. The lawsuit alleges that the Company did not comply with the statutory requirements for obtaining consumers’ consent to receive text messages from the Company, and seeks statutory penalties for those alleged deficiencies. The Company believes the plaintiff's interpretation of the applicable law is incorrect, and it will vigorously defend itself in the lawsuit, but provides no assurance that it will be successful. An adverse judgment or settlement could have an adverse effect on the Company's profitability and could cause variability in its results compared to expectations. In addition to the foregoing, the Company is subject to routine legal proceedings, claims, and litigation in the ordinary course of its business. The Company may also engage in future litigation with franchise owners to enforce the terms of franchise agreements and compliance with brand standards as determined necessary to protect its brand, the consistency of products and the customer experience. Lawsuits require significant management attention and financial resources and the outcome of any litigation is inherently uncertain. The Company does not, however, expect that the costs to resolve these routine matters will have a material adverse effect on its consolidated financial position, results of operations, or cash flows.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 28, 2015
Related Party Transactions [Abstract]
Related Party Transactions	Advisory services and monitoring agreement Prior to the IPO , the Company was a party to an advisory services and monitoring agreement with affiliates of Lee Equity Partners, LLC (“ Lee Equity ”). In accordance with the terms of the agreement, the Company paid Lee Equity for ongoing advisory and monitoring services, such as management consulting, financial analysis, and other related services. As compensation, the Company paid an annual fee of $0.5 million in four equal quarterly installments, plus direct expenses incurred, which are included in Selling, general and administrative costs. The agreement did not call for a minimum level of services to be furnished and provided that fees paid to Lee Equity could be deferred at the discretion of Lee Equity or to the extent required under the Company’s 2014 Credit Facility . On May 7, 2014, the Company completed the IPO and paid Lee Equity $1.5 million in accordance with the terms of the agreement. With the completion of the IPO , the advisory services and monitoring agreement between the Company and Lee Equity was terminated. Employee loans related to share purchases In connection with share-based compensation, the Company previously made several loans to certain officers and non-officer employees of the Company (see Note 13 — Share-based Compensation ). Loans made in connection with the issuance of the Company’s equity have been recognized in Stock subscriptions receivable as a reduction of total equity. In March 2014, the Company entered into agreements with certain executive officers to repurchase an aggregate of 109,779 shares of common stock at a price of $11.85 per share for a total purchase price of $1.3 million . Included among the repurchased shares were 31,707 shares of common stock for which vesting terms were accelerated in connection with the repurchase. The Company received a payment of $1.0 million from the same executive officers to repay their outstanding stock subscription receivables. Concurrent with the share repurchase, the Company entered into agreements with the same executive officers to issue stock options to purchase an aggregate of 109,779 shares at an exercise price of $11.85 per share, including 78,072 fully vested options and 31,707 options subject to time-based or performance-based vesting provisions. In connection with the acceleration of vesting and the issuance of the fully vested options, the Company recorded stock-based compensation expense of $0.5 million for the nine months ended September 29, 2014 . All loans made to officers of the Company were repaid prior to the IPO . Some loans made to non-officer employees of the Company were still outstanding at the time of the IPO . As of September 28, 2015 , and December 29, 2014 , the Company had stock subscription receivables of $0.1 million . Related party revenue The Company was party to transactions to sell services to Project Pie during the period Project Pie was a cost-method investee. Revenue from these transactions are recorded as Lease and other revenues on the Condensed Consolidated Statements of Operations . Related party revenue during the periods reported was as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Related party revenue $ — $ 24 $ 4 $ 108 As of September 28, 2015 , and December 29, 2014 , the Company had an Accounts receivable balance from Project Pie of $0 and $66,000 , respectively. Notes receivable On March 13, 2015, the Company loaned Project Pie , a cost-method investee, $250,000 , in exchange for a note receivable which bore interest at 13% and matured in June 2015. This note was written off as a bad debt in the three months ended June 29, 2015. In June 2015, the Company entered into an agreement with Project Pie under which the Company, at its sole discretion, may advance funds not to exceed $0.8 million in exchange for a subordinated note receivable. As of September 28, 2015 , no funds were outstanding under the agreement.

Segment Information

Segment Information	9 Months Ended
	Sep. 28, 2015
Segment Reporting [Abstract]
Segment Information	The Company has the following reportable segments: (i) Domestic Company Stores; (ii) Domestic Franchise; and (iii) International. The Domestic Company Stores segment includes operations with respect to Company-owned stores in the United States and derives its revenues from retail sales of pizza and side items to the general public. The Domestic Franchise segment includes operations with respect to franchised stores in the United States and derives its revenues primarily from franchise and development fees and franchise royalties from franchised stores in the United States. The International segment includes operations related to the Company’s operations outside the United States and derives its revenues from franchise and development fees and franchise royalties from franchised stores outside the United States. The following tables summarize information on profit or loss and assets for each of the Company’s reportable segments: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Revenues Domestic Franchise $ 10,445 $ 10,139 $ 33,258 $ 33,510 Domestic Company Stores 17,604 11,627 52,927 35,121 International 83 403 236 501 Total $ 28,132 $ 22,169 $ 86,421 $ 69,132 Segment Operating Income (Loss) Domestic Franchise $ 4,901 $ 4,713 $ 15,036 $ 14,941 Domestic Company Stores (516 ) (178 ) 1,172 501 International 76 252 154 28 Corporate and unallocated (1,416 ) (1,262 ) (5,381 ) (6,534 ) Total $ 3,045 $ 3,525 $ 10,981 $ 8,936 Depreciation and amortization Domestic Franchise $ 1,416 $ 1,262 $ 4,005 $ 3,692 Domestic Company Stores 1,217 737 3,352 2,100 International 8 8 23 23 Total $ 2,641 $ 2,007 $ 7,380 $ 5,815 (in thousands) September 28, 2015 December 29, 2014 Total Assets Domestic Franchise $ 134,639 $ 137,417 Domestic Company Stores 46,416 34,953 International 415 447 Other (1) 89,443 92,647 Total $ 270,913 $ 265,464 (1) Other assets which are not allocated to the individual segments primarily include trade names and trademarks, unamortized deferred financing charges, and an intercompany note.

Description of Business and B23

Description of Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 28, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation	Basis of presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “ SEC ”). Accordingly, they do not include all information and footnotes required by generally accepted accounting principles in the United States (“ GAAP ”) for complete financial statements. In the Company’s opinion, all necessary adjustments, consisting of only normal recurring adjustments, have been made for the fair presentation of the results of the interim periods presented. The results of operations for such interim periods are not necessarily indicative of the results to be expected for the full year. The accompanying interim unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 29, 2014 .
Principles of consolidation	Principles of consolidation The interim unaudited condensed consolidated financial statements include the accounts of Papa Murphy’s Holdings, Inc., its subsidiaries and certain entities which the Company consolidates as variable interest entities (“ VIE s”). The Company reports noncontrolling interests in consolidated entities as a component of equity separate from shareholders’ equity. All significant intercompany transactions and balances have been eliminated. Throughout the interim unaudited condensed consolidated financial statements and the related notes thereto, “Papa Murphy’s” and “the Company” refer to Papa Murphy’s Holdings, Inc. and its consolidated subsidiaries.
Fiscal year	Fiscal year The Company uses a 52- or 53-week fiscal year, ending on the Monday nearest to December 31. Fiscal years 2015 and 2014 are 52-week years. All three month periods presented herein contain 13 weeks. All references to years and quarters relate to fiscal periods rather than calendar periods. References to 2015 and 2014 are references to fiscal years ending December 28, 2015 , and ended December 29, 2014 , respectively.

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 28, 2015
Business Combinations [Abstract]
Schedule of fair value of assets acquired	The fair values of the assets acquired are summarized below (in thousands): Cash and cash equivalents $ 9 Inventories 81 Prepaid expenses and other current assets 67 Property and equipment 1,280 Reacquired franchise rights 1,041 Asset retirement obligation (176 ) Total identifiable net assets acquired 2,302 Goodwill 3,104 Total consideration $ 5,406 The fair values of the assets acquired are summarized below (in thousands): Cash and cash equivalents $ 5 Inventories 39 Prepaid expenses and other current assets 38 Property and equipment 406 Reacquired franchise rights 1,139 Asset retirement obligation (75 ) Total identifiable net assets acquired 1,552 Goodwill 2,554 Total consideration $ 4,106
Unaudited pro forma information	Revenues and net income from the acquired stores from the closing date of the M2AD Acquisition included in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 28, 2015 , are as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 28, 2015 Revenues $ 1,259 $ 2,824 Net income 74 188 The following unaudited pro forma consolidated revenues and net income (loss) of the Company give effect to the Other Acquisitions as if they had occurred as of the beginning of 2014 : Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Pro forma revenues $ 28,158 $ 23,906 $ 88,092 $ 74,492 Pro forma net income (loss) $ 1,125 $ (840 ) $ 2,296 $ (1,639 ) Revenues and net loss from the acquired stores from the closing date of the Other Acquisitions included in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 28, 2015 , are as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 28, 2015 Revenues $ 1,929 $ 4,306 Net loss (76 ) (197 ) The following unaudited pro forma consolidated revenues and net income (loss) of the Company give effect to the M2AD Acquisition as if it had occurred as of the beginning of 2014 : Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Pro forma revenues $ 28,132 $ 23,333 $ 87,500 $ 72,868 Pro forma net income (loss) $ 1,122 $ (808 ) $ 2,311 $ (1,544 )

Prepaid Expenses and Other Cu25

Prepaid Expenses and Other Current Assets (Tables)	9 Months Ended
	Sep. 28, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses and other current assets	Prepaid expenses and other current assets consist of the following: (in thousands) September 28, 2015 December 29, 2014 Prepaid media development costs (1) $ 238 $ 593 Prepaid rents and insurance 1,277 620 POS software licenses for resale 1,175 1,800 Other 794 410 Total prepaid expenses and other current assets $ 3,484 $ 3,423 (1) Prepaid media development costs represent costs incurred for advertisements that have not aired.
Software license revenue	POS software license revenue during the periods reported was as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 POS software license revenue $ 258 $ 444 $ 559 $ 2,370

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 28, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	Depreciation expense during the periods reported was as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Depreciation expense $ 1,288 $ 747 $ 3,367 $ 2,079

Goodwill (Tables)

Goodwill (Tables)	9 Months Ended
	Sep. 28, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of changes to goodwill	The following summarizes changes to the Company’s goodwill, by reportable segment: (in thousands) DOMESTIC COMPANY STORES DOMESTIC FRANCHISE TOTAL Balance at December 29, 2014 $ 19,536 $ 81,546 $ 101,082 Acquisitions 5,658 — 5,658 Balance at September 28, 2015 $ 25,194 $ 81,546 $ 106,740

Intangible Assets Intangible As

Intangible Assets Intangible Assets (Tables)	9 Months Ended
	Sep. 28, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Finite-lived Intangible Assets Amortization Expense	Amortization expense during the periods reported was as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Amortization expense $ 1,353 $ 1,260 $ 4,013 $ 3,736

Notes Receivable (Tables)

Notes Receivable (Tables)	9 Months Ended
	Sep. 28, 2015
Receivables [Abstract]
Notes Receivable	Notes receivable consist of the following: (in thousands) September 28, 2015 December 29, 2014 Note maturing in 2020 bearing interest at 9.0% and collateralized by store assets. $ 239 $ 287 Total notes receivable 239 287 Less current portion (71 ) (62 ) Notes receivable, net of current portion $ 168 $ 225

Financing Arrangements (Tables)

Financing Arrangements (Tables)	9 Months Ended
	Sep. 28, 2015
Debt Disclosure [Abstract]
Long-term debt	Long-term debt consists of the following: (in thousands) September 28, 2015 December 29, 2014 2014 Credit Facility Term loan $ 109,900 $ 112,000 Revolving line of credit — — Notes payable 3,000 3,000 Total principal amount of long-term debt 112,900 115,000 Unamortized debt issuance costs (1,244 ) (1,485 ) Total long-term debt 111,656 113,515 Less current portion (3,500 ) (2,800 ) Total long-term debt, net of current portion $ 108,156 $ 110,715

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	9 Months Ended
	Sep. 28, 2015
Fair Value Disclosures [Abstract]
Fair value	The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis: September 28, 2015 December 29, 2014 (in thousands) CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE FAIR VALUE MEASUREMENTS Financial assets Notes receivable (1) $ 239 $ 242 $ 287 $ 302 Level 3 Cost-method investments (2) — — 4,000 5,055 Level 3 Financial liabilities Long-term debt, including current portion thereof (3) 112,900 114,100 115,000 113,880 Level 3 (1) The fair value of the notes receivable was estimated primarily using a discounted cash flow method based on a discount rate, reflecting the applicable credit spread. (2) The fair value of cost-method investments was estimated primarily using a discounted cash flow method based on a discount rate, reflecting the applicable credit spread. (3) The fair value of long-term debt was estimated using a discounted cash flow method based on a discount rate, reflecting the applicable credit spread.

Accrued and Other Liabilities (

Accrued and Other Liabilities (Tables)	9 Months Ended
	Sep. 28, 2015
Payables and Accruals [Abstract]
Accrued and other liabilities	Accrued and other liabilities consist of the following: (in thousands) September 28, 2015 December 29, 2014 Accrued compensation and related costs 3,988 3,670 Gift cards and certificates payable 1,989 2,912 Accrued interest and non-income taxes payable 693 745 Convention fund balance 746 271 Advertising and development fund 5 507 Unearned product rebates 1,407 791 Other 389 704 $ 9,217 $ 9,600

Income Taxes Income Taxes (Tabl

Income Taxes Income Taxes (Tables)	9 Months Ended
	Sep. 28, 2015
Income Tax Disclosure [Abstract]
Income tax information	Information on the Company’s income taxes for the periods reported is as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Provision for (benefit from) income taxes $ 746 $ (703 ) $ 1,206 $ (1,124 ) Income (loss) before income taxes 1,868 (1,491 ) 2,985 (2,700 ) Effective income tax rate 39.9 % 47.1 % 40.4 % 41.6 %

Shareholders_ Equity Shareholde

Shareholders’ Equity Shareholders' Equity (Tables)	9 Months Ended
	Sep. 28, 2015
Equity [Abstract]
Schedule of change in noncontrolling interest	The Company received the following additional investments by noncontrolling interest holders in PPH during the periods reported: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Additional investment by noncontrolling interest holders in PPH $ — $ — $ 56 $ 167

Share-based Compensation (Table

Share-based Compensation (Tables)	9 Months Ended
	Sep. 28, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of restricted stock activity	Information with respect to restricted stock activity is as follows: Number of Shares of Restricted Common Stock Time Vesting Performance Vesting Weighted Average Sale/Grant Date Fair Value Per Share Unvested, December 29, 2014 127,650 215,556 $ 2.27 Granted 7,877 — 19.05 Vested (70,930 ) — 1.94 Repurchased (7,542 ) (29,041 ) 0.70 Unvested, September 28, 2015 57,055 186,515 $ 3.15 The weighted average fair value of share-based compensation awards granted and the fair values of awards granted and vested during the period were as follows: Three Months Ended Nine Months Ended (in thousands, except per share amounts) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Weighted average grant date fair value per share $ 19.41 $ 8.80 $ 19.05 $ 8.80 Total fair value of shares granted 60 60 150 60 Total fair value of shares vested 86 26 137 458
Schedule of stock option activity	Information with respect to stock option activity is as follows: Number of Shares Subject to Options Time Vesting Performance Weighted Weighted Aggregate Outstanding, December 29, 2014 722,307 222,842 $ 11.16 Granted 192,000 — 13.43 Exercised (24,626 ) — 11.00 Forfeited (38,233 ) (22,361 ) 11.76 Outstanding, September 28, 2015 851,448 200,481 $ 11.55 8.7 years $ 3,516 Exercisable, September 28, 2015 428,646 — $ 11.19 8.6 years $ 1,588 Vested and expected to vest at September 28, 2015 788,028 170,409 $ 11.52 8.7 years $ 3,227
Schedule of weighted average fair value of share-based compensation awards granted and vested, and the intrinsic value of options exercised	Fair value information for options granted and vested and the intrinsic value of options exercised during the periods reported are as follows: Three Months Ended Nine Months Ended (in thousands, except per share amounts) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Weighted average grant date fair value per share N/A N/A $ 5.41 $ 4.27 Total fair value of awards granted $ — $ — 1,039 4,151 Total fair value of awards vested 23 87 346 1,519 Total intrinsic value of options exercised 121 — 154 —
Schedule of employee service share-based compensation, allocation of recognized period costs	Total compensation costs recognized in connection with the Incentive Plans during the periods reported were as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Stock compensation expense $ 202 $ 193 $ 858 $ 1,738 Associated income tax benefits 64 68 282 578
Schedule of share-based payment award, restricted and unrestricted common stock and preferred shares, valuation assumptions	During the reported periods prior to the IPO , the Company assumed the following: Three Months Ended (1) IPO Scenario Non-IPO Scenario Risk free rate 0.36% 0.36% Volatility of the underlying assets 45% 45% Estimated time until a liquidation event 0.58 years 1.75 years Marketability discount—common stock 10% 25% Marketability discount—preferred stock 8% 15% Weight applied to scenario 95% 5% (1) The last pre-IPO valuation of the Company was performed as of March 31, 2014.
Schedule of share-based payment award, stock options, valuation assumptions	The fair value of the stock option awards granted during the periods reported was estimated with the following weighted-average assumptions. Three Months Ended Nine Months Ended September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Risk free rate N/A N/A 1.9% 2.0% Expected volatility N/A N/A 37.9% 35.0% Expected term N/A N/A 6.3 years 6.3 years Expected dividend yield N/A N/A 0.0% 0.0%

Earnings per Share (EPS) (Table

Earnings per Share (EPS) (Tables)	9 Months Ended
	Sep. 28, 2015
Earnings Per Share [Abstract]
Computations of basic and dilutive earnings per share	The following table sets forth the computations of basic and dilutive EPS : Three Months Ended Nine Months Ended (in thousands, except per share data) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Earnings: Net income (loss) $ 1,122 $ (788 ) $ 1,779 $ (1,576 ) Less: Net loss attributable to noncontrolling interests — — 500 — Net income (loss) attributable to Papa Murphy's 1,122 (788 ) 2,279 (1,576 ) Less: cumulative Series A and B Preferred dividends — — — (2,150 ) Net income (loss) available to common shareholders $ 1,122 $ (788 ) $ 2,279 $ (3,726 ) Shares: Weighted average common shares outstanding 16,672 16,585 16,635 10,603 Dilutive effect of restricted equity awards (1) 247 — 258 — Diluted weighted average number of shares outstanding 16,920 16,585 16,894 10,603 Earnings (loss) per share: Basic earnings (loss) per share $ 0.07 $ (0.05 ) $ 0.14 $ (0.35 ) Diluted earnings (loss) per share $ 0.07 $ (0.05 ) $ 0.13 $ (0.35 ) (1) The Company’s potential common stock instruments such as stock options and restricted stock were not included in the computation of diluted EPS for the three and nine months ended September 29, 2014 as the effect of including these shares in the calculation would have been anti-dilutive.

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 28, 2015
Related Party Transactions [Abstract]
Schedule of related party transactions	Related party revenue during the periods reported was as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Related party revenue $ — $ 24 $ 4 $ 108

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 28, 2015
Segment Reporting [Abstract]
Segment reporting information by segment	The following tables summarize information on profit or loss and assets for each of the Company’s reportable segments: Three Months Ended Nine Months Ended (in thousands) September 28, 2015 September 29, 2014 September 28, 2015 September 29, 2014 Revenues Domestic Franchise $ 10,445 $ 10,139 $ 33,258 $ 33,510 Domestic Company Stores 17,604 11,627 52,927 35,121 International 83 403 236 501 Total $ 28,132 $ 22,169 $ 86,421 $ 69,132 Segment Operating Income (Loss) Domestic Franchise $ 4,901 $ 4,713 $ 15,036 $ 14,941 Domestic Company Stores (516 ) (178 ) 1,172 501 International 76 252 154 28 Corporate and unallocated (1,416 ) (1,262 ) (5,381 ) (6,534 ) Total $ 3,045 $ 3,525 $ 10,981 $ 8,936 Depreciation and amortization Domestic Franchise $ 1,416 $ 1,262 $ 4,005 $ 3,692 Domestic Company Stores 1,217 737 3,352 2,100 International 8 8 23 23 Total $ 2,641 $ 2,007 $ 7,380 $ 5,815 (in thousands) September 28, 2015 December 29, 2014 Total Assets Domestic Franchise $ 134,639 $ 137,417 Domestic Company Stores 46,416 34,953 International 415 447 Other (1) 89,443 92,647 Total $ 270,913 $ 265,464 (1) Other assets which are not allocated to the individual segments primarily include trade names and trademarks, unamortized deferred financing charges, and an intercompany note.

Description of Business and B39

Description of Business and Basis of Presentation Description of business (Details)	Sep. 28, 2015statestore
Franchisor Disclosure [Line Items]
Number of stores	1,500
Number of states in which the Company operates | state	38
Domestic
Franchisor Disclosure [Line Items]
Number of stores	1,466
Domestic | Franchised stores
Franchisor Disclosure [Line Items]
Number of stores	1,340
Domestic | Company-owned stores
Franchisor Disclosure [Line Items]
Number of stores	126
Canada and the United Arab Emirates | Franchised stores
Franchisor Disclosure [Line Items]
Number of stores	34

Description of Business and B40

Description of Business and Basis of Presentation Public offering and stock split (Details) $ / shares in Units, $ in Millions	May. 07, 2014USD ($)$ / sharesshares	May. 01, 2014shares
Class of Stock [Line Items]
Common stock, shares outstanding		11,134,070
IPO
Class of Stock [Line Items]
Proceeds from IPO, net of offering fees and expenses | $	$ 54.6
IPO | Common Stock
Class of Stock [Line Items]
Shares issued during IPO, shares	5,833,333
Share price | $ / shares	$ 11
Stock split, conversion ratio		2.2630
Term Loan | Senior Term Loan | 2013 Senior secured credit facility | PMI Holdings Inc.
Class of Stock [Line Items]
Repayments of loans outstanding | $	$ 55.5
Amount outstanding | $	$ 112.1
Preferred Shares to Common Shares | Common Stock
Class of Stock [Line Items]
Conversion of stock, common shares issued		3,054,318

Description of Business and B41

Description of Business and Basis of Presentation Recent accounting pronouncements (Details) - USD ($) $ in Thousands	Sep. 28, 2015	Dec. 29, 2014
New Accounting Pronouncement, Early Adoption [Line Items]
Unamortized debt issuance costs	$ 1,244	$ 1,485
Adjustments for New Accounting Principle, Early Adoption
New Accounting Pronouncement, Early Adoption [Line Items]
Unamortized debt issuance costs	$ 1,200	$ 1,500

Acquisitions Cost method invest

Acquisitions Cost method investment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2015	Sep. 29, 2014	Sep. 28, 2015	Sep. 29, 2014	Dec. 29, 2014
Schedule of Cost-method Investments [Line Items]
Loss on disposal or impairment of investments	$ 0	$ 0	$ 4,500	$ 0
Convertible preferred units | Project Pie, LLC
Schedule of Cost-method Investments [Line Items]
Loss on disposal or impairment of investments	$ 4,500
Project Pie, LLC
Schedule of Cost-method Investments [Line Items]
Maximum commitment to fund operations					$ 500
Additional investment in Project Pie, LLC.			$ 500

Acquisitions Acquisitions (Deta

Acquisitions Acquisitions (Details)	Mar. 09, 2015USD ($)store	Sep. 28, 2015USD ($)storeacquisition	Jul. 27, 2015store	May. 11, 2015store	May. 04, 2015store	Mar. 02, 2015store	Jan. 26, 2015store	Jan. 12, 2015store
Business Acquisition [Line Items]
Stores acquired | store				3
Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Stores acquired | store		16
Number of businesses acquired | acquisition		7
Transaction costs		$ 31,000
Total purchase price		5,400,000
Post-close holdback		13,000
Deferred acquisition holdback		84,000
M2AD Management, Inc.
Business Acquisition [Line Items]
Transaction costs	$ 30,000
Total purchase price	4,100,000
Post-close holdback		$ 5,000
Deferred acquisition holdback	$ 6,000
Reacquired franchise rights | Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Weighted average useful life		3 years 5 months
Reacquired franchise rights | M2AD Management, Inc.
Business Acquisition [Line Items]
Weighted average useful life	6 years 7 months
Tennessee | Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Stores acquired | store							8
Washington | M2AD Management, Inc.
Business Acquisition [Line Items]
Stores acquired | store	6
Idaho | Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Stores acquired | store								1
Oregon | Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Stores acquired | store						1
Texas | Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Stores acquired | store	1		1
Colorado | Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Stores acquired | store					1

Acquisitions Fair value allocat

Acquisitions Fair value allocations (Details) - USD ($) $ in Thousands	Sep. 28, 2015	Mar. 09, 2015	Dec. 29, 2014
Business Acquisition [Line Items]
Goodwill	$ 106,740		$ 101,082
Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Cash and cash equivalents	9
Inventories	81
Prepaid expenses and other current assets	67
Property and equipment	1,280
Reacquired franchise rights	1,041
Asset retirement obligation	(176)
Total identifiable net assets acquired	2,302
Goodwill	3,104
Total consideration	$ 5,406
M2AD Management, Inc.
Business Acquisition [Line Items]
Cash and cash equivalents		$ 5
Inventories		39
Prepaid expenses and other current assets		38
Property and equipment		406
Reacquired franchise rights		1,139
Asset retirement obligation		(75)
Total identifiable net assets acquired		1,552
Goodwill		2,554
Total consideration		$ 4,106

Acquisitions Unaudited pro form

Acquisitions Unaudited pro forma information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2015	Sep. 29, 2014	Sep. 28, 2015	Sep. 29, 2014
M2AD Management, Inc.
Business Acquisition [Line Items]
Pro forma revenues	$ 28,132	$ 23,333	$ 87,500	$ 72,868
Pro forma net income (loss)	1,122	(808)	2,311	(1,544)
Revenues	1,259		2,824
Net income (loss)	74		188
Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Pro forma revenues	28,158	23,906	88,092	74,492
Pro forma net income (loss)	1,125	$ (840)	2,296	$ (1,639)
Revenues	1,929		4,306
Net income (loss)	$ (76)		$ (197)

Prepaid Expenses and Other Cu46

Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 28, 2015	Sep. 29, 2014	Sep. 28, 2015	Sep. 29, 2014	Dec. 29, 2014
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid media development costs	[1]	$ 238		$ 238		$ 593
Prepaid rents and insurance		1,277		1,277		620
POS software licenses for resale		1,175		1,175		1,800
Other		794		794		410
Total prepaid expenses and other current assets		3,484		3,484		$ 3,423
Revenue from External Customer [Line Items]
POS software license revenue		281	$ 490	845	$ 2,543
POS Systems
Revenue from External Customer [Line Items]
POS software license revenue		$ 258	$ 444	$ 559	$ 2,370
[1]	Prepaid media development costs represent costs incurred for advertisements that have not aired.

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2015	Sep. 29, 2014	Sep. 28, 2015	Sep. 29, 2014	Dec. 29, 2014
Property, Plant and Equipment [Abstract]
Accumulated depreciation	$ 12,600		$ 12,600		$ 9,300
Depreciation expense	$ 1,288	$ 747	$ 3,367	$ 2,079

Goodwill (Details)

Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 28, 2015USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 101,082
Acquisitions	5,658
Ending balance	106,740
Domestic Company Stores
Goodwill [Roll Forward]
Beginning balance	19,536
Acquisitions	5,658
Ending balance	25,194
Domestic Franchise
Goodwill [Roll Forward]
Beginning balance	81,546
Acquisitions	0
Ending balance	$ 81,546

Goodwill - Narrative (Details)

Goodwill - Narrative (Details) - USD ($) $ in Thousands	Sep. 28, 2015	Dec. 29, 2014
Goodwill [Line Items]
Goodwill	$ 106,740	$ 101,082
International Segment
Goodwill [Line Items]
Goodwill	$ 0	$ 0

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2015	Sep. 29, 2014	Sep. 28, 2015	Sep. 29, 2014	Dec. 29, 2014
Intangible Assets, Net
Accumulated amortization	$ 21,700		$ 21,700		$ 19,300
Amortization expense	$ 1,353	$ 1,260	$ 4,013	$ 3,736

Notes Receivable (Details)

Notes Receivable (Details) - USD ($) $ in Thousands	Sep. 28, 2015	Dec. 29, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes receivable	$ 239	$ 287
Less current portion	(71)	(62)
Notes receivable, net of current portion	168	225
Note Maturing In 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes receivable	$ 239	$ 287
Interest rate	9.00%

Financing Arrangements - Sched

Financing Arrangements - Schedule of Long-term debt (Details) - USD ($) $ in Thousands	Sep. 28, 2015	Dec. 29, 2014
Debt Instrument [Line Items]
Principal amount of long-term debt	$ 112,900	$ 115,000
Unamortized debt issuance costs	(1,244)	(1,485)
Long-term debt	111,656	113,515
Less current portion	(3,500)	(2,800)
Total long-term debt, net of current portion	108,156	110,715
Senior Secured Credit Facility | Term Loan
Debt Instrument [Line Items]
Principal amount of long-term debt	109,900	112,000
Senior Secured Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Principal amount of long-term debt	0	0
Notes payable
Debt Instrument [Line Items]
Principal amount of long-term debt	$ 3,000	$ 3,000

Financing Arrangements - Narrat

Financing Arrangements - Narrative (Details) - USD ($) $ in Thousands	May. 07, 2014	Sep. 26, 2016	Sep. 28, 2015	Sep. 29, 2014	Sep. 28, 2015	Sep. 29, 2014	Dec. 29, 2014	Aug. 28, 2014
Debt Instrument [Line Items]
Loss on early retirement of debt	$ (1,200)		$ 0	$ (3,428)	$ 0	$ (4,619)
Long-term debt			$ 111,656		111,656		$ 113,515
PMI Holdings Inc. | Senior Secured Credit Facility
Debt Instrument [Line Items]
Interest rate during period			3.45%
Papa Murphy's Company Stores, Inc. | Notes payable
Debt Instrument [Line Items]
Long-term debt			$ 3,000		$ 3,000
Interest rate on notes payable			5.00%		5.00%
2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 132,000		$ 132,000
Minimum term loan amortization payments					700
2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility | Term Loan
Debt Instrument [Line Items]
Maximum borrowing capacity			112,000		$ 112,000
Maturity date					Aug. 28, 2019
2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity			20,000		$ 20,000
2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility | Letter of credit subfacility
Debt Instrument [Line Items]
Maximum borrowing capacity			2,500		2,500
2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility | Swing-line loan subfacility
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 1,000		$ 1,000
2013 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity								$ 177,000
2013 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility | Term Loan
Debt Instrument [Line Items]
Maximum borrowing capacity								167,000
2013 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity								10,000
2013 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility | Letter of credit subfacility
Debt Instrument [Line Items]
Maximum borrowing capacity								$ 2,500
LIBOR rate | 2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility
Debt Instrument [Line Items]
Interest rate at end of period			3.45%		3.45%
Scenario, Forecast | 2014 Senior secured credit facility | PMI Holdings Inc. | Senior Secured Credit Facility
Debt Instrument [Line Items]
Minimum term loan amortization payments		$ 1,400

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands		Sep. 28, 2015	Dec. 29, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt		$ 111,656	$ 113,515
Reported value measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financing Receivable, Net		239	287
Long-term debt		112,900	115,000
Reported value measurement | Project Pie, LLC
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cost-method investments		0	4,000
Estimate of fair value measurement | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of notes receivable	[1]	242	302
Fair value of long-term debt	[2]	114,100	113,880
Estimate of fair value measurement | Project Pie, LLC | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of cost-method investments	[3]	$ 0	$ 5,055
[1]	The fair value of the notes receivable was estimated primarily using a discounted cash flow method based on a discount rate, reflecting the applicable credit spread.
[2]	The fair value of long-term debt was estimated using a discounted cash flow method based on a discount rate, reflecting the applicable credit spread.
[3]	The fair value of cost-method investments was estimated primarily using a discounted cash flow method based on a discount rate, reflecting the applicable credit spread.

Accrued and Other Liabilities55

Accrued and Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 28, 2015	Dec. 29, 2014
Payables and Accruals [Abstract]
Accrued compensation and related costs	$ 3,988	$ 3,670
Gift cards and certificates payable	1,989	2,912
Accrued interest and non-income taxes payable	693	745
Convention fund balance	746	271
Advertising and development fund	5	507
Unearned product rebates	1,407	791
Other	389	704
Accrued and other liabilities	$ 9,217	$ 9,600

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2015	Sep. 29, 2014	Sep. 28, 2015	Sep. 29, 2014
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ 746	$ (703)	$ 1,206	$ (1,124)
Income (loss) before income taxes	$ 1,868	$ (1,491)	$ 2,985	$ (2,700)
Effective income tax rate	39.90%	47.10%	40.40%	41.60%

Shareholders_ Equity (Details)

Shareholders’ Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	May. 01, 2014	Sep. 28, 2015	Sep. 29, 2014	May. 01, 2014	Sep. 28, 2015	Sep. 29, 2014
Class of Stock [Line Items]
Cumulative preferred dividend rate per year				6.00%
Liquidation value per share	$ 36.68			$ 36.68
Percentage of all remaining earnings if distributed to common stockholders				20.00%
Investment by noncontrolling interest holders		$ 0	$ 0		$ 56	$ 167
Series A Preferred Shares
Class of Stock [Line Items]
Liquidation value per share	21.14			$ 21.14
Series B Preferred Shares
Class of Stock [Line Items]
Liquidation value per share	$ 26.80			$ 26.80
Preferred Shares to Common Shares | Common Stock
Class of Stock [Line Items]
Conversion of stock, common shares issued	3,054,318

Share-based Compensation (Restr

Share-based Compensation (Restricted Common Shares and Stock Options) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2015	Sep. 29, 2014	Sep. 28, 2015	Sep. 29, 2014	Dec. 29, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares reserved for equity incentive awards	2,116,747		2,116,747
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares issued under plan	584,017		584,017		610,084
Restricted common stock, weighted average sale date fair value (in dollars per share)
Unvested, Beginning balance (usd per share)			$ 2.27
Weighted average sale/grant date fair value per share	$ 19.41	$ 8.80	19.05	$ 8.80
Vested (usd per share)			1.94
Repurchased (usd per share)			0.70
Unvested, Ending balance (usd per share)	3.15		3.15
Restricted Stock Grants:
Weighted average sale/grant date fair value per share	$ 19.41	$ 8.80	$ 19.05	$ 8.80
Total fair value of shares granted	$ 60	$ 60	$ 150	$ 60
Total fair value of shares vested	$ 86	26	$ 137	$ 458
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares issued under plan	1,051,929		1,051,929		945,149
Stock options outstanding, weighted average exercise price (in dollars per share)
Outstanding, Beginning balance (usd per share)			$ 11.16
Granted (usd per share)			13.43
Exercised (usd per share)			11
Forfeited (usd per share)			11.76
Outstanding, Ending balance (usd per share)	$ 11.55		11.55
Exercisable (usd per share)	11.19		11.19
Vested and expected to vest (usd per share)	$ 11.52		$ 11.52
Stock Option Grants
Weighted Average Remaining Contractual Term, Outstanding			8 years 8 months
Weighted Average Remaining Contractual Term, Exercisable			8 years 7 months
Weighted Average Remaining Contractual Term, Vested and expected to vest			8 years 8 months
Aggregate Intrinsic Value, Outstanding	$ 3,516		$ 3,516
Aggregate Intrinsic Value, Exercisable	1,588		1,588
Aggregate Intrinsic Value, Vested and expected to vest	3,227		$ 3,227
Weighted average grant date fair value per share			$ 5.41	$ 4.27
Total fair value of awards granted	0	0	$ 1,039	$ 4,151
Total fair value of awards vested	23	87	346	1,519
Total intrinsic value of options exercised	$ 121	$ 0	$ 154	$ 0
Time Vesting | Restricted Stock
Number of shares of restricted common stock, unvested [Roll Forward]
Unvested, Beginning balance (in shares)			127,650
Granted (in shares)			7,877
Vested (in shares)			(70,930)
Repurchased (in shares)			(7,542)
Unvested, Ending balance (in shares)	57,055		57,055
Time Vesting | Stock Option
Number of shares of stock options, outstanding [Roll Forward]
Outstanding, Beginning balance (in shares)			722,307
Granted (in shares)			192,000
Exercised (in shares)			(24,626)
Forfeited (in shares)			(38,233)
Outstanding, Ending balance (in shares)	851,448		851,448
Exercisable (in shares)	428,646		428,646
Vested and expected to vest (in shares)	788,028		788,028
Performance Vesting | Restricted Stock
Number of shares of restricted common stock, unvested [Roll Forward]
Unvested, Beginning balance (in shares)			215,556
Granted (in shares)			0
Vested (in shares)			0
Repurchased (in shares)			(29,041)
Unvested, Ending balance (in shares)	186,515		186,515
Performance Vesting | Stock Option
Number of shares of stock options, outstanding [Roll Forward]
Outstanding, Beginning balance (in shares)			222,842
Granted (in shares)			0
Exercised (in shares)			0
Forfeited (in shares)			(22,361)
Outstanding, Ending balance (in shares)	200,481		200,481
Exercisable (in shares)	0		0
Vested and expected to vest (in shares)	170,409		170,409

Share-based Compensation (Compe

Share-based Compensation (Compensation Cost and Valuation) (Details) - USD ($) $ in Thousands		3 Months Ended			9 Months Ended
		Sep. 28, 2015	Sep. 29, 2014	Mar. 31, 2014	Sep. 28, 2015	Sep. 29, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense		$ 202	$ 193		$ 858	$ 1,738
Associated income tax benefits		64	$ 68		282	$ 578
Total unrecognized stock-based compensation expense		2,800			$ 2,800
Compensation not yet recognized, period for recognition					3 years 5 months
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free rate					1.90%	2.00%
Expected volatility					37.90%	35.00%
Expected term					6 years 3 months	6 years 4 months
Expected dividend yield					0.00%	0.00%
Time Vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation expense		1,900			$ 1,900
Performance Vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized stock-based compensation expense		$ 900			$ 900
IPO Scenario
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free rate	[1]			0.36%
Expected volatility	[1]			45.00%
Estimated time until a liquidation event, minimum	[1]			6 months 29 days
Weight applied to an IPO or non-IPO scenario (in percentage)	[1]			95.00%
IPO Scenario | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Marketability discount	[1]			10.00%
IPO Scenario | Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Marketability discount	[1]			8.00%
Non-IPO Scenario
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk free rate	[1]			0.36%
Expected volatility	[1]			45.00%
Estimated time until a liquidation event, maximum	[1]			1 year 9 months
Weight applied to an IPO or non-IPO scenario (in percentage)	[1]			5.00%
Non-IPO Scenario | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Marketability discount	[1]			25.00%
Non-IPO Scenario | Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Marketability discount	[1]			15.00%
[1]	The last pre-IPO valuation of the Company was performed as of March 31, 2014.

Earnings per Share (EPS) (Detai

Earnings per Share (EPS) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				4 Months Ended	9 Months Ended
	Sep. 28, 2015		Sep. 29, 2014		May. 01, 2014	Sep. 28, 2015	Sep. 29, 2014
Earnings Per Share [Abstract]
Percentage of all remaining earnings if distributed to common stockholders					20.00%
Earnings:
Net income (loss)	$ 1,122		$ (788)			$ 1,779	$ (1,576)
Less: Net loss attributable to noncontrolling interests	0		0			500	0
Net income (loss) attributable to Papa Murphy's	1,122		(788)			2,279	(1,576)
Less: cumulative Series A and B Preferred dividends	0		0			0	(2,150)
Net income (loss) available to common shareholders	$ 1,122		$ (788)			$ 2,279	$ (3,726)
Shares:
Weighted average common shares outstanding	16,672,327		16,584,724			16,635,400	10,603,339
Dilutive effect of potential common stock	247,177	[1]	0	[1]		258,175	0	[1]
Diluted weighted average number of shares outstanding	16,919,504		16,584,724			16,893,575	10,603,339
Earnings (loss) per share:
Basic earnings (loss) per share	$ 0.07		$ (0.05)			$ 0.14	$ (0.35)
Diluted earnings (loss) per share	$ 0.07		$ (0.05)			$ 0.13	$ (0.35)
Antidilutive shares excluded from computation of earnings per share	70,000		128,000			69,000	170,000
[1]	The Company’s potential common stock instruments such as stock options and restricted stock were not included in the computation of diluted EPS for the three and nine months ended September 29, 2014 as the effect of including these shares in the calculation would have been anti-dilutive.

Commitments and Contingencies (

Commitments and Contingencies (Details)	Jun. 18, 2014plaintiff	Apr. 11, 2014plaintiff	Oct. 31, 2014store	Sep. 28, 2015store	Jul. 09, 2014
Loss Contingencies [Line Items]
Lease terms for store units				5 years
Number of store locations				1,500
Number of lawsuits consolidated					2
Litigation with franchise owners
Loss Contingencies [Line Items]
Number of franchise owner groups (in plaintiff) | plaintiff	16	12
Guarantor for operating leases | Franchise owner store locations
Loss Contingencies [Line Items]
Number of store locations				8
Guarantor for subleased operating leases | Franchise owner store locations
Loss Contingencies [Line Items]
Number of store locations				3
Resolution | Litigation with franchise owners
Loss Contingencies [Line Items]
Number of franchise owner groups (in plaintiff)			11

Related Party Transactions (Det

Related Party Transactions (Details)	May. 07, 2014USD ($)	Mar. 31, 2014USD ($)$ / sharesshares	Sep. 28, 2015USD ($)installment$ / shares	Sep. 29, 2014USD ($)	Sep. 28, 2015USD ($)installment$ / shares	Sep. 29, 2014USD ($)	Jun. 16, 2015USD ($)	Mar. 13, 2015USD ($)	Dec. 29, 2014USD ($)	Jun. 30, 2014USD ($)
Related Party Transaction [Line Items]
Payments received on subscription receivables					$ 0	$ 1,097,000
Share-based compensation expense (reduction)			$ 202,000	$ 193,000	858,000	1,738,000
Employee loans related to share purchases
Related Party Transaction [Line Items]
Stock subscription receivable			$ 100,000		$ 100,000				$ 100,000
Employee loans related to share purchases | Stock Option
Related Party Transaction [Line Items]
Share-based compensation expense (reduction)						500,000
Lee Equity Partners, LLC | Advisory services and monitoring agreement
Related Party Transaction [Line Items]
Annual fee										$ 500,000
Number of installments | installment			4		4
Payment to Lee Equity after completion of IPO	$ 1,500,000
Executive Officer | Employee loans related to share purchases
Related Party Transaction [Line Items]
Common stock repurchased (in shares) | shares		109,779
Stock repurchase, total purchase price		$ 1,300,000
Number of common stock shares for which vesting terms are accelerated (in shares) | shares		31,707
Payments received on subscription receivables		$ 1,000,000
Executive Officer | Employee loans related to share purchases | Stock Option
Related Party Transaction [Line Items]
Number of options issued (in shares) | shares		109,779
Executive Officer | Employee loans related to share purchases | Fully Vested Options
Related Party Transaction [Line Items]
Number of options issued (in shares) | shares		78,072
Executive Officer | Employee loans related to share purchases | Options Subject to Time-Based or Market-Based Vesting Provisions
Related Party Transaction [Line Items]
Number of options issued (in shares) | shares		31,707
Executive Officer | Employee loans related to share purchases | Share Repurchase Agreement
Related Party Transaction [Line Items]
Stock repurchase, price per share | $ / shares		$ 11.85
Exercise price per share | $ / shares			$ 11.85		$ 11.85
Project Pie, LLC
Related Party Transaction [Line Items]
Related party accounts receivable			$ 0		$ 0				$ 66,000
Project Pie, LLC | Other Income, Net
Related Party Transaction [Line Items]
Revenue from related parties			0	$ 24,000	4,000	$ 108,000
Project Pie, LLC | Note issued by Project Pie maturing in June 2015 | Project Pie, LLC
Related Party Transaction [Line Items]
Related party notes receivable								$ 250,000
Interest rate								13.00%
Project Pie, LLC | Note issued by Project Pie maturing In December 2016 | Project Pie, LLC
Related Party Transaction [Line Items]
Related party notes receivable			$ 0		$ 0
Maximum | Project Pie, LLC | Note issued by Project Pie maturing In December 2016 | Project Pie, LLC
Related Party Transaction [Line Items]
Related party notes receivable							$ 800,000

Segment Information - Profit o

Segment Information - Profit or Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 28, 2015	Sep. 29, 2014	Sep. 28, 2015	Sep. 29, 2014
Segment Reporting Information [Line Items]
Revenues	$ 28,132	$ 22,169	$ 86,421	$ 69,132
Segment Operating Income (Loss)	3,045	3,525	10,981	8,936
Depreciation and amortization	2,641	2,007	7,380	5,815
Operating Segments
Segment Reporting Information [Line Items]
Revenues	28,132	22,169	86,421	69,132
Segment Operating Income (Loss)	3,045	3,525	10,981	8,936
Operating Segments | Domestic Franchise
Segment Reporting Information [Line Items]
Revenues	10,445	10,139	33,258	33,510
Segment Operating Income (Loss)	4,901	4,713	15,036	14,941
Depreciation and amortization	1,416	1,262	4,005	3,692
Operating Segments | Domestic Company Stores
Segment Reporting Information [Line Items]
Revenues	17,604	11,627	52,927	35,121
Segment Operating Income (Loss)	(516)	(178)	1,172	501
Depreciation and amortization	1,217	737	3,352	2,100
Operating Segments | International
Segment Reporting Information [Line Items]
Revenues	83	403	236	501
Segment Operating Income (Loss)	76	252	154	28
Depreciation and amortization	8	8	23	23
Operating Segments | Corporate and unallocated
Segment Reporting Information [Line Items]
Segment Operating Income (Loss)	$ (1,416)	$ (1,262)	$ (5,381)	$ (6,534)

Segment Information - Assets (

Segment Information - Assets (Details) - USD ($) $ in Thousands		Sep. 28, 2015	Dec. 29, 2014
Segment Reporting Information [Line Items]
Total Assets		$ 270,913	$ 265,464
Operating Segments
Segment Reporting Information [Line Items]
Total Assets		270,913	265,464
Operating Segments | Domestic Franchise
Segment Reporting Information [Line Items]
Total Assets		134,639	137,417
Operating Segments | Domestic Company Stores
Segment Reporting Information [Line Items]
Total Assets		46,416	34,953
Operating Segments | International
Segment Reporting Information [Line Items]
Total Assets		415	447
Operating Segments | Other
Segment Reporting Information [Line Items]
Total Assets	[1]	$ 89,443	$ 92,647
[1]	Other assets which are not allocated to the individual segments primarily include trade names and trademarks, unamortized deferred financing charges, and an intercompany note.