Cobs USA vs Papa Murphy's

Papa Murphy’s is the stronger software-sales opportunity right now because TAM trumps budget. The brand fields 965 franchised locations—a 5x larger addressable market than Cobs’ 188. While Cobs franchisees generate higher average unit revenue ($874K) and likely have deeper pockets for technology, the sheer volume of independent operators at Papa Murphy’s means a vendor can build a material pipeline without needing heroic penetration rates. Selling into 965 units, even with a lower per-seat deal size, yields far more total revenue than chasing a near-saturated 188-unit system.

The meaningful tradeoff is budget versus timing and terrain. Cobs wins the budget dimension: its franchisees invest up to $1.27M per store and run a higher AUV, suggesting they can afford premium software stacks. But that advantage is blunted by a combined 10% royalty and ad fund, which consumes a significant slice of top-line revenue before tech spend. Papa Murphy’s operators, though operating at a lower investment tier, keep more of every dollar thanks to a 7% total royalty and ad burden, and they face a -3.6% unit decline that makes cost-saving and revenue-driving tools an urgent buy. Terrain is a wash—both chains use an approved-supplier model, so no corporate gatekeeper tilts the field. Timing favors Papa Murphy’s: its 2026 FDD signals an active franchisor still refreshing the system, while Cobs’ 2025 filing suggests a slower update cycle, which often correlates with less tech-forward leadership.

Verdict: Papa Murphy’s larger TAM, more urgent pain points, and fresher FDD make it the superior target, even if per-unit spend runs lower than at Cobs.