Freddy's vs Papa Murphy's

Freddy’s is the stronger near-term software opportunity because the budget dimension overwhelms everything else. At $1.86M AUV versus $680K, Freddy’s operators have nearly 3× the top-line throughput to fund technology spend—POS, scheduling, marketing automation—without the same margin squeeze. Higher AUV also correlates with multi-location sophistication and a willingness to pay for back-office efficiency, making deal sizes larger and sales cycles more justifiable.

The tradeoff is TAM depth. Papa Murphy’s has almost double the unit count (1,127 vs 580) and a fully franchised base, which means more logos to hunt. But that breadth is hollow when unit growth is negative and AUV is low; you’re selling into a shrinking, cash-constrained fleet where churn risk is real and average contract value will struggle to break four figures annually. Freddy’s 5.4% unit growth signals expansion budget, not just replacement budget.

Timing and terrain tilt the decision further toward Freddy’s. A current FDD (2026) means the brand is actively disclosing and likely enforcing tech standards now, not operating on stale data. An approved-supplier model on both sides keeps the procurement path open, but Freddy’s higher investment ceiling ($2.8M) means new builds are capital-intensive—operators will want software that protects that investment from day one. The only real risk is a smaller total account universe, but 542 growing, high-revenue franchised units is a high-quality pipeline that beats 1,119 declining ones.

Verdict: Freddy’s wins on budget and momentum; sell where the check size is 3× and the fleet is expanding, not contracting.