Popeyes Louisiana Kitchen Franchise Cost & Fees

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Description

Year Business Began: 1972Franchising Since: 1976Headquarters: Miami, FloridaEstimated Number of Units: 2,890Franchise Description: Popeyes Louisiana Kitchen, Inc. is the franchisor. The franchisor is an indirect subsidiary of Restaurant Brands International Limited Partnership. Popeyes Restaurants are quick service restaurants offering a limited menu of lunch and dinner products, and in certain Restaurants approved by the franchisor, breakfast products. Popeyes distinguishes itself with a unique “Louisiana” style menu that features spicy chicken, chicken tenders, biscuits, fried shrimp and other seafood, red beans and rice and other quick-service menu items. Franchisees will operate a quick-service restaurant specializing in the sale of fried chicken, seafood and other quick service food under the name “Popeyes Louisiana Kitchen.”Training Overview: Franchisees, the Key Operator, and, if the franchisee is an entity, all officers, directors, all holders of a legal or beneficial interest in the entity of 10% or more, and all holders of a legal or beneficial interest in the entity of less than 10% if those holders are actively involved with the day-to-day operations of the Restaurant must complete, to the franchisor’s satisfaction, the Popeyes New Franchisee Orientation Program (NFOP) before franchisees open or take possession of their first Popeyes Restaurant. NFOP is conducted on an as needed basis and consists of a maximum of two days of training conducted at a facility the franchisor designates (currently at its corporate offices in Miami, Florida). NFOP is designed to provide an overview of the System, including the services that the franchisor provides to franchisees. Certain of the management employees must complete (to the franchisor’s satisfaction) the Popeyes Training Program for their applicable management role at the Restaurant (PTP). If the Restaurant is the franchisee’s first Popeyes Restaurant, then before the franchisee opens or takes possession of the Restaurant, a minimum of five of the designated management employees (the franchisor will decide the final number), including the Key Operator, must complete (to the franchisor’s satisfaction) PTP for their applicable management role at the Restaurant. PTP can last as long as six to ten weeks, the first two to four weeks of which consist of an orientation and team member station training until the trainee meets the franchisor’s proficiency standards. The next four to six weeks will cover leadership training as well as training modules for (as applicable) a restaurant general manager, assistant restaurant general manager, and shift manager. Periodically, the franchisor also may make available to franchisees or their employees additional training programs that the franchisor, in its discretion, choose to conduct. Attendance at these training programs may be mandatory.Territory Granted: When franchisees sign a Franchise Agreement for a Restaurant that is not an Alternative Venue, franchisees will be granted a geographic area within which the franchisor will not open, nor license anyone other than the franchisee to open, a Popeyes Restaurant during the term of the Franchise Agreement. The Protected Area will consist of an area equal to the lesser of: (1) a 1 mile radius around the Restaurant; or (2) an area surrounding the Restaurant encompassing a population (residential and/or daytime/commercial) of 50,000 people. The limited exclusivity granted in the Protected Area does not apply to: (a) existing Restaurants, (b) any closed Restaurants that may re-open within three years from the closing date of such restaurant; and (c) Restaurants for which Franchise Agreements were previously granted. The franchisor has the right periodically to reduce or modify the Protected Area to reflect population shifts. Franchisees will not receive an exclusive territory under the Franchise Agreement. Franchisees may face competition from other Popeyes Restaurants that the franchisor franchises or owns and operates.Obligations and Restrictions: If more than one individual or a legal entity such as a corporation, partnership or limited liability company owns the franchise, the franchisee must designate and retain an individual to serve as the Key Operator of the Restaurant. If franchisees are an individual that owns the franchise, the franchisor recommends (but does not require) that they be the Key Operator. The Key Operator must be approved by the franchisor and must have at least a 5% ownership interest in the franchisee or the right to receive 5% or more of the operating profits of the Restaurant. The Key Operator must have full control over the day-to-day operations of the Restaurant and any other Popeyes Restaurants owned by the franchisee located in the same geographic area. The Restaurant must at all times be under the direct, on-premises supervision of a Popeyes Certified Manager. Franchisees must use the Restaurant solely for the operation of a Popeyes Restaurant and must keep the Restaurant open and in normal operation for the hours and days as specified in the Manual or otherwise in writing. Franchisees must meet and maintain the highest applicable health standard and rating. Franchisees must operate the Restaurant in strict conformity with the methods, standards and specifications as prescribed in the Manual or otherwise in writing. Franchisees must offer for sale and sell at the Restaurant all and only those products and services as are expressly authorized by the franchisor in the Manual or otherwise in writing. Franchisees may offer products and menu items for sale at whatever price they want.Term of Agreement and Renewal: The length of the initial franchise term is 20 years from the date of commencement of operation of the Restaurant. One renewal term of 10 years, subject to contractual requirements is available, as well as an option to purchase up to 1 additional 10 year “Supplemental Renewal Term.”Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s notes, leases or other obligations. Investment Tables: Estimated Initial Investment Name of Fee Low High Franchise Fee $50,000 $50,000 Real Estate and Improvements Variable Soft Costs $8,000 $265,000 Site Work $0 $650,000 Building $100,000 $1,025,000 FF&E Signage and Technology $165,000 $485,000 Initial Training $17,200 $24,200 Opening Supplies $11,500 $23,000 Insurance $9,000 $18,000 Utility Deposits $2,500 $50,000 Business licenses $300 $600 Additional Funds (3 months) $20,000 $30,000 ESTIMATED TOTAL INVESTMENT* $383,500 $2,620,800 * The estimated initial investment range covers from an In-Line Location size up to Free Standing Location size. The range doesn’t include real estate. Other Fees Type of Fee Amount Royalty 5% of gross sales. Advertising Fund Contribution 4% of gross sales. Advertising Co-op Currently, 0.25% to 2% of Gross Sales as established by Local Advertising Co-op (in addition to Advertising Fund Contribution) Audit Cost of audit. Costs and Attorneys’ Fees Franchisor’s costs and expenses. Employee Engagement Surveys Up to $200 per restaurant per year Guest Recovery Fee $200 – $300 per year; based on the number and type of guest complaints received by the guest relations hotline in respect to the franchisee’s restaurant. Indemnity The losses and expenses the franchisor incurs. Insurance Cost of obtaining coverage plus interest and a reasonable administrative fee that the franchisor will set. Interest on Overdue Payments 1.5% per month or the maximum rate permitted by law, whichever is less. Interest on Understated Sales 1.5% per month or the maximum rate permitted by law, whichever is less. Returned Payment Fee $35 per returned payment. Product Testing, Inspections and Approval Cost of testing new products and inspecting new suppliers Renewal 50% of the then current, standard initial franchise fee or $15,000, whichever is greater Supplemental Term Option50% of our then-current, standard, initial franchise fee Securities Offering Review Fee $5,000 or a greater amount, if necessary, to reimburse the franchisor for its out-of-pocket costs and expenses in connection with reviewing the proposed securities offering. Trade Secret Products Approximately $3,000 initially; approximately $3,000 per month when in operation. Transfer $7,500 Impact Study An amount up to $6,000 per study Non-Solicitation of Employees $5,000 per occurrence. The above information has been taken from the FDD of Popeyes Louisiana Kitchen. Year of FDD: 2018Franchise Direct’s Disclaimer

Other Fees
Type of Fee Amount
Royalty 5% of gross sales.
Advertising Fund Contribution 4% of gross sales.
Advertising Co-op Currently, 0.25% to 2% of Gross Sales as established by Local Advertising Co-op (in addition to Advertising Fund Contribution)
Audit Cost of audit.
Costs and Attorneys’ Fees Franchisor’s costs and expenses.
Employee Engagement Surveys Up to $200 per restaurant per year
Guest Recovery Fee $200 – $300 per year; based on the number and type of guest complaints received by the guest relations hotline in respect to the franchisee’s restaurant.
Indemnity The losses and expenses the franchisor incurs.
Insurance Cost of obtaining coverage plus interest and a reasonable administrative fee that the franchisor will set.
Interest on Overdue Payments 1.5% per month or the maximum rate permitted by law, whichever is less.
Interest on Understated Sales 1.5% per month or the maximum rate permitted by law, whichever is less.
Returned Payment Fee $35 per returned payment.
Product Testing, Inspections and Approval Cost of testing new products and inspecting new suppliers
Renewal 50% of the then current, standard initial franchise fee or $15,000, whichever is greater
Supplemental Term Option 50% of our then-current, standard, initial franchise fee
Securities Offering Review Fee $5,000 or a greater amount, if necessary, to reimburse the franchisor for its out-of-pocket costs and expenses in connection with reviewing the proposed securities offering.
Trade Secret Products Approximately $3,000 initially; approximately $3,000 per month when in operation.
Transfer $7,500
Impact Study An amount up to $6,000 per study
Non-Solicitation of Employees $5,000 per occurrence.