Popeyes Franchise Startup Cost, Revenue and Profit Margin

If you are interested in owning a thriving food chain franchise, then you may want to consider doing business with Popeyes.

This article will provide all the necessary information you need to own a Popeyes franchisee. These would include Popeye’s “5 pillars of success,” products and services, financial requirements, Training, and Support as well as how to apply.

Let’s begin, shall we?

A Brief Background

Popeyes Franchise is a subsidiary of the Restaurant Brands International headquartered in New Orleans, Louisiana.

It is a restaurant chain that provides fast-food services with products that include fried chicken, Cajun cuisine, biscuits, vegetables, and Seafood. In December of 2015, Popeyes had a workforce strength of 2,130 and continues to grow.

Popeyes was founded on June 12th of 1972. It initially operated as ‘Chicken on the Run.’ Today, the company has since blossomed to spread across the United States and beyond to over 30 countries. Popeyes was founded by Al Copeland.

Popeyes’ 5 Pillars of Success

As a prospective franchisee, you will be interested in knowing what the franchise stands for. The Popeyes franchise has as its pillars of success the following;

  1. Build a Distinctive Brand

Popeyes franchise prides itself in its Louisiana heritage offers a variety of food cultures from 7 nations. This has resulted in its rich collection of flavors which have proven to be its edge.

  1. Creating Memorable Experiences

All Popeyes franchise customers are promised a pleasant and unforgettable experience. This leaves them coming back for more

  • Growing Restaurant Profits

The franchisee is its central focus here. Popeyes franchise gives its franchisees a higher preference. As a Popeyes franchisee, Popeyes ensures your investments are safe, successful, and profitable. This is because it believes that its success lies in the success of its franchisees.

  1. Accelerating Quality Restaurants

Popeyes realizes that an important ingredient to success is choosing the right franchisees, and growing together in the right times and locations.

  1. Creating Servant Leaders

As a Popeyes franchisee, you are trained to become a servant leader because this is best for business and allows you to handle your franchise effectively by following its lead.

Popeye Franchise Products and Services

Although mentioned briefly above, a full list of Popeye franchise’s products and services include chicken and sausage Jambalaya, mashed potatoes with Cajun-style gravy, red beans and rice sides, macaroni and cheese, Cajun rice, coleslaw, and po’ boy.

Financial Requirements

To become a Popeyes franchisee, you need to fulfill all its financial requirements. What do these financial requirements consist of? They include the franchise fee starting from $50,000. You will also need to pay an initial investment fee that ranges from $333,500 to $2,570,800. Estimates of the initial investment are provided in the table below;

Estimated Initial Investment

Fee Type Low High

  • Real Estate and Improvements V        A        R        I        E        S
  • Soft Costs $8,000 $265,000
  • Site Work $0 $650,000
  • Building $100,000 $1,025,000
  • FF and 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 (lasting 3 months) $20,000 $30,000

There are also other fees Popeyes franchisees are required to pay. They consist of;

Fee Type Amount Required

  • Advertising Co-op You will need to pay between 0.25% to 2%

of Gross Sales as provided for by your local advertising co-op. This is in addition to the advertising fund contribution.

  • Advertising Fund Contribution 4% of Gross Sales
  • Royalty 5% of Gross Sales
  • Employee Engagement Surveys $200 per restaurant/year
  • Audit Includes the cost of Audit
  • Costs and Attorneys’ Fees Franchisor’s costs and expenses
  • Non-Solicitation of employees $5,000 per occurrence
  • Securities Offering Review fee $5,000 or more depending on how much was

expended by the franchisee from his/her pocket for review of a proposed security offering.

  • Trade Secret Products Initially $3,000 (approx.) and $3,000/month when

when operational.

  • Transfer $7,500
  • Impact Study Up to $6,000/study.
  • Interest on Overdue Payments 5%/mo or the maximum permitted by law.
  • Supplemental Term Option 50% of the then-current, standard, initial franchise fee.
  • Interest in Understated Sales 5%/mo. or the maximum permitted by law
  • Renewal 50% of current standard initial franchise fee or

$15,000

  • Returned Payment Fee $35 per returned payment
  • Product Testing, Inspections and

Approval The cost of testing new products and inspecting new

suppliers.

  • Indemnity Loss and expenses incurred by the franchisor
  • Insurance Interest and the administrative fee set by franchisor plus

Cost of obtaining coverage.

  • Guest Recovery Fee $200 to $300/year.

Training and Support

As a Popeyes franchisee, you benefit its elaborate training and support programs. These include a classroom and in-restaurant training, having access to its highly effective marketing programs, state-of-the-art modeling tools, an efficient local and national marketing program, multi-unit franchise opportunities, site selection, design, development, and construction. You also get access to its real estate development opportunities among others.

The Application Process

Popeyes franchise has a comprehensive application process that starts with inquiring about its website. You will be contacted by a Popeye representative who schedules a meeting with a team from the company. A due diligence process is followed and after that, you can submit your application package. Credit clearance commences immediately, followed by a presentation of the Franchise Disclosure Document FDD for review.

The next step in the application process includes meeting with existing franchisees, the Director of Development, and with the Regional Director of Operations. A discovery day is organized in Atlanta GA, and your restaurant franchise approval follows. The development agreement is executed, a site selected and accepted, and the franchise agreement is finally executed.

The construction of your Popeyes franchise location commences immediately. While it is under construction, you undergo a training process together with your managers. This is followed by an orientation program for all franchisees finally, the opening of the restaurant.

These are the requirements and procedures you need to meet and follow to become a Popeyes franchisee. The above-listed application procedure may be changed by the franchise depending on its needs at any point in time. You must try to find out if there are any changes by contacting the franchise.