Popeyes Franchise FDD, Profits, Costs & Fees (2024)
Popeyes, famous for its Louisiana-style chicken, was founded in 1972 by Alvin C. Copeland Sr. in a New Orleans suburb. Originally named “Chicken on the Run,” the restaurant struggled until Copeland introduced a Cajun-inspired spicy chicken recipe, leading to its rebranding as Popeyes, named after Popeye Doyle from the 1971 film The French Connection.
Popeyes began franchising in 1976, and its growth accelerated with the introduction of popular items like buttermilk biscuits in 1983. The brand’s international expansion started in 1984 with its first location in Toronto, Canada.
In 2017, Popeyes was acquired by Restaurant Brands International, sparking further growth and solidifying its global presence.
Popeyes Franchise Initial Investment
It costs on average between $471,000 – $3,876,000 to start a Popeyes franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property. Popeyes offers 2 types of franchises:
Facility Type | Initial Investment Range |
---|---|
New In-Line Popeyes Facility | $471,000 – $1,900,700 |
New Free-Standing Popeyes Facility | $1,188,500 – $3,875,700 |
We are summarizing below the main costs associated with opening a New Free-Standing Popeyes Facility. For more information on the costs required to start a Popeyes franchise, refer to the Franchise Disclosure Document (Item 7).
Type of Expenditure | Amount for a Free Standing Franchise |
---|---|
Initial Franchise Fee | $50,000 – $50,000 |
Soft Costs | $10,000 – $420,000 |
Site Work | $40,000 – $800,000 |
Building | $700,000 – $1,600,000 |
FF&E, Signage and Technology | $325,000 – $850,000 |
Initial Training | $17,200 – $24,200 |
Opening Supplies | $13,000 – $26,000 |
Insurance | $9,000 – $19,000 |
Utility Deposits | $3,000 – $50,000 |
Business Licenses | $1,300 – $6,500 |
Additional Funds – 3 months | $20,000 – $30,000 |
Total Estimated Initial Investment | $1,188,500 – $3,875,700 |
Popeyes Franchise Average Revenue (AUV)
A Popeyes franchised restaurant makes on average $1,789,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,662,000 yearly revenue for similar chicken-style restaurant franchises. Below are 10 Popeyes competitors as a comparison:
Popeyes Franchise Disclosure Document
Frequently Asked Questions
How many Popeyes locations are there?
As of recent data, Popeyes operates over 3,100 locations worldwide. Around 30 of these are company-owned, while the vast majority—more than 3,000—are franchised.
The brand is present in 49 states and territories, with Texas having the most locations, at 432. Popeyes continues to expand its presence, with plans to increase its number of stores in the U.S. and Canada to over 4,200 by 2028.
What is the total investment required to open a Popeyes franchise?
The total investment required to open a Popeyes franchise ranges from $1,188,500 to $3,875,700 for the New Free-Standing Popeyes Facility.
What are the ongoing fees for a Popeyes franchise?
For a Popeyes franchise, the royalty fee is typically 5% of gross sales, which is paid to the franchisor for the continued use of the Popeyes brand and system. Additionally, franchisees are required to contribute 4.5% of their gross sales towards a marketing fund, which helps cover the costs of national advertising campaigns and promotional efforts to boost brand visibility.
What are the financial requirements to become a Popeyes franchisee?
To begin a Popeyes franchise, prospective franchisees are generally required to have a minimum net worth of $1 million and at least $500,000 in liquid assets. These financial requirements help ensure that potential franchisees have the necessary resources to support the significant investment involved in starting and operating a Popeyes restaurant.
How much can a Popeyes franchise owner expect to earn?
The average gross sales for a Popeyes franchise are approximately $1.79 million per location. Assuming a 15% operating profit margin, $1.79 million yearly revenue can result in $268,500 EBITDA annually.
Who owns Popeyes?
Popeyes is owned by Restaurant Brands International (RBI), a multinational fast food holding company that also owns Burger King, Tim Hortons, and Firehouse Subs. RBI acquired Popeyes in 2017 for $1.8 billion, integrating it into its portfolio to capitalize on the growing demand for fast food chicken.
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