El Pollo Loco Franchise FDD, Profits & Costs (2025)
El Pollo Loco, meaning “The Crazy Chicken” in Spanish, is a fast-food restaurant chain specializing in Mexican-style grilled chicken. Founded in 1975 by Juan Francisco Ochoa in Guasave, Sinaloa, Mexico, the brand expanded into the United States in 1980 with its first U.S. location in Los Angeles.
Headquartered in Costa Mesa, California, El Pollo Loco began franchising in 1987. The menu features fire-grilled chicken and a variety of Mexican-inspired dishes, including tacos, burritos, and salads.
A distinguishing factor of El Pollo Loco is its commitment to using citrus-marinated, fire-grilled chicken, offering a healthier alternative to traditional fried options. This focus on fresh, flavorful ingredients has helped the brand maintain a strong presence in the competitive fast-food industry.
Initial Investment
How much does it cost to start a El Pollo Loco franchise? It costs on average between $794,000 – $2,686,000 to start a El Pollo Loco franchised restaurant.
The costs for opening an El Pollo Loco franchise include construction, equipment, inventory, and initial operating expenses. The exact amount varies based on factors such as the type of restaurant format selected, the location, and whether the franchisee opts to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Fee | $40,000 |
| Lease Payment | $7,000 to $25,000 |
| Building Improvements | $248,250 to $980,000 |
| Site Improvements | $150,000 to $564,000 |
| Market Study and/or Impact Analysis | $0 to $12,000 |
| Architectural Design & Engineering | $20,000 to $110,000 |
| Equipment, Fixtures and Furnishings | $200,000 to $570,000 |
| Computer-based cash control system and POS system | $15,000 to $70,000 |
| Training for cash control system and POS system | $1,000 to $7,000 |
| Travel & Accommodation Expenses | $2,000 to $25,000 |
| Opening Inventory and Supplies | $20,000 to $25,000 |
| Signs (including Indoor Digital Menu Boards) | $30,000 to $70,000 |
| Digital Communication Board | $1,500 to $2,500 |
| Outdoor Order Confirmation Board | $9,000 to $20,000 |
| Lease Security Deposits | $5,000 to $10,000 |
| Insurance | $10,000 to $20,000 |
| Grand Opening Fee | $5,000 |
| New Restaurant Opening Support | $5,000 to $30,000 |
| Additional Funds – 3 months | $25,000 to $100,000 |
| Total Estimated Initial Investment | $793,750 to $2,685,500 |
Average Revenue (AUV)
How much revenue can you make with a El Pollo Loco franchise? A El Pollo Loco franchised restaurant makes on average $2,063,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,764,000 yearly revenue for similar chicken franchises.
Download the Franchise Disclosure Document
Frequently Asked Questions
How many El Pollo Loco locations are there?
As of the latest data, El Pollo Loco operates approximately 498 locations, with the majority being franchise-owned.
What is the total investment required to open a El Pollo Loco franchise?
The total investment required to open a El Pollo Loco franchise ranges from $794,000 to $2,686,000.
What are the ongoing fees for a El Pollo Loco franchise?
El Pollo Loco franchisees are required to pay a royalty fee of 5% of gross sales, while the marketing is 4% of gross sales. These fees are designed to support the continued operation of the franchise and to fund national and regional marketing efforts aimed at driving brand awareness and customer traffic.
What are the financial requirements to become a El Pollo Loco franchisee?
To become an El Pollo Loco franchisee, the financial requirements include a minimum net worth of $1.5 million and at least $500,000 in liquid capital. These financial criteria ensure that potential franchisees have the necessary resources to invest in and successfully operate an El Pollo Loco location, covering initial costs and maintaining ongoing operational needs.
How much can a El Pollo Loco franchise owner expect to earn?
The average gross sales for a El Pollo Loco franchise are approximately $2.06 million per location. Assuming a 15% operating profit margin, $2.06 million yearly revenue can result in $309,000 EBITDA annually.
Who owns El Pollo Loco?
El Pollo Loco franchise is owned by a publicly traded company, El Pollo Loco Holdings, Inc. The company is backed by private equity firms, including KKR & Co. Inc., which holds a significant ownership stake.
Disclaimer
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