Popeyes Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$110,000

-

$3,696,000

OPERATING PROFIT

Unlock

Emily

Updated

February 15, 2024

Is

Popeyes

a franchise?

Yes,
Popeyes
is a franchise and
currently
accepts
franchise
applications

Headquartered in Miami, Florida, Popeyes is a distinguished American multinational fast-food chain, renowned for its expertise in fried chicken.

In addition to their iconic fried chicken, Popeyes offers a delectable menu featuring seafood, Cajun cuisine, vegetables, and mouthwatering biscuits.

Popeyes was established in 1972, and today, it boasts an expansive presence encompassing 46 US states, Puerto Rico, the District of Columbia, and an additional 30 countries worldwide. It started issuing franchises in 1976 and as of 2023 it operates 4,091 restaurants.

Among the 4,091 restaurants operating on a global scale, 1,146 are company-owned, while 2,904 are franchises in the US.

How many

Popeyes

franchises

are there?

In 2022, there were
2827
outlets in the United States, of which
2786
are franchises, and
41
are corporate-owned.

What are the

Popeyes

franchise

fees?

Initial franchise fee

$50,000

Royalty fee

5.0%

Advertising fee

5.0%

Initial Franchise Fee ($50,000)

The initial franchise fee for a Popeyes franchise is $50,000. However, there are certain incentives that may reduce this fee. For instance, under the Veterans Development Incentive Program, the initial franchise fee can be reduced to $27,500 if certain conditions are met.

Similarly, under the Women and Minorities Development Incentive Program, qualified individuals may also be eligible for a reduced initial franchise fee of $27,500. Additionally, the initial franchise fee for a Delivery Restaurant is based on a one-year term and will be negotiated if a longer term is granted.

Royalty Fee (5.00%)

The standard royalty fee is 5% of Gross Sales. However, if a franchisee qualifies for certain development incentive programs, the royalty fee may be reduced to 2% of Gross Sales for a period of 6 months following the opening date of the Franchised Restaurant.

Advertising Contribution (up to 4% of Gross Sales)

Franchisees are required to contribute to the Popeyes Advertising Fund. The contribution rate is determined by the franchisor and can go up to 4% of Gross Sales. This fund is used for advertising, marketing, and promotional activities to enhance the public image and goodwill of the Popeyes brand.

Local Advertising Co-op (0.5% to 1.75% of Gross Sales)

In addition to the Advertising Contribution, franchisees may also be required to contribute towards a Local Advertising Co-op, with rates ranging from 0.5% to 1.75% of Gross Sales as established by the Local Advertising Co-op.

Additional Ordering System/Digital System Fee ($200 per Restaurant per month, plus 1% of Digital Sales)

Franchisees are required to pay a fixed fee of $200 per Restaurant per month, plus 1% of Digital Sales for the Additional Ordering System/Digital System, with an annual maximum per calendar year of $6,500 per Restaurant.

How much does

it cost

to start a

Popeyes

franchise?

It costs between
$110,000
and
$3,696,000
to start a
Popeyes
franchise.

The total estimated initial investment involved in starting a Popeyes franchise ranges from $109,500 to $3,695,800, excluding real estate costs. This detailed breakdown will help potential franchisees get a clearer picture of the financial commitment required to start a Popeyes franchise.

Type of Expenditure Amount
Initial Franchise Fee $50,000
Soft Costs $10,000 - $400,000
Site Work $40,000 - $800,000
Building $700,000 - $1,600,000
FF&E, Signage and Technology $225,000 - $700,000
Initial Training $17,200 - $24,200
Opening Supplies $11,500 - $23,000
Insurance $9,000 - $18,000
Utility Deposits $3,000 - $50,000
Business Licenses $300 - $600
Additional Funds – 3 months $20,000 - $30,000
Total Estimated Initial Investment $1,086,000 - $3,695,800

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Popeyes

provide

training

to its

franchisees?

Yes,
Popeyes
provides training to its franchisees.

Popeyes has a structured training program in place for its franchisees to ensure they are well-prepared to operate a franchise.

The training program is initiated with an initial training phase conducted at a Certified Training Restaurant and other designated training locations.

If it's the franchisee's first Popeyes Restaurant, at least 5 designated management employees must complete this training program. However, if it's not their first Popeyes Restaurant, at least four designated management employees must complete the training.

One of these designated management employees must include the Managing Director for the Franchised Restaurant.

The initial training covers various operational and managerial aspects necessary for running the restaurant.

In addition to the initial training, Popeyes may offer additional training programs from time to time, which may be mandatory.

Does

Popeyes

provides

territory

protection?

Franchisees are granted the limited right to operate a Popeyes Restaurant within a specific geographic area termed the "Territory" as outlined in the Area Development Agreement. The rights granted are confined to the Territory and any specific geographic areas within it, known as "Target Locations."

If Popeyes offers the opportunity to operate a restaurant in an "Alternative Venue" such as an airport or stadium, these venues can only be situated at locations approved by Popeyes.

This means that while franchisees have a designated area to operate, they do not have a broader exclusive territory, and their operations are limited to the designated and approved areas.

Can a

Popeyes

franchise

be run as

a passive

investment?

Popeyes requires the franchisee to be actively involved in the operation of their franchised restaurant.

The franchise agreement stipulates that the franchisee must designate and retain an individual to serve as the Managing Director of the Franchised Restaurant.

If the franchisee is an individual that owns the franchise, it is recommended (but not required) that they be the Managing Director.

The franchisee must also designate a Managing Owner who must have at least a 10% legal or beneficial ownership interest in the franchise or the right to receive 10% or more of the operating profits of the Franchised Restaurant.

The Managing Director is required to have full control over the day-to-day activities, including operations, of the Franchised Restaurant and must devote full-time and best efforts to supervising the operation of the Franchised Restaurant.

Related Posts