Popeyes Louisiana Hen made headlines again in 2019 after they added a hen sandwich to their meals lineup. Hen lovers queued outdoors franchise places in all places attempting to get their palms on the spicy sandwich, which really sold out nationwide. So it’s well-documented that Popeyes has a loyal and enthusiastic fanbase.
Maybe that’s why you’re enthusiastic about opening a Popeyes franchise location. This text will cowl what you might want to get began.
Popeyes franchise overview
Popeyes franchise quick info:
Preliminary franchise payment: $50,000
Preliminary franchise time period: 20 years
Estimated preliminary prices: between $235,000 and $454,000
The primary Popeyes location opened up in New Orleans 50 years in the past. The story goes that in 1971, Al Copeland began a hen restaurant in an effort to compete with KFC. His first enterprise failed, however a yr later he opened a restaurant referred to as Popeyes Mighty Good Wonderful Hen. Copeland shortly found the advantage of franchising his concept. The primary franchises popped up all through Louisiana, however Popeyes now boasts over 2,700 places worldwide.
In early 2017, Popeyes was bought by Restaurant Manufacturers Worldwide, a U.S. and Canadian quick meals holding firm. Different properties owned underneath the Restaurant Manufacturers Worldwide (RBI) umbrella are quick meals juggernaut Burger King and Canada’s largest quick-service restaurant chain, Tim Hortons.
How a lot does a Popeyes franchise value?
The preliminary franchise payment for a Popeyes restaurant is $50,000 and the overall estimated funding per location is between $235,000 and $454,000. Why the big window in estimated prices? Don’t neglect that actual property costs can fluctuate enormously based mostly on location. A franchise proprietor in New York Metropolis goes to have a lot increased actual property prices than, say, a franchise proprietor in Baton Rouge. So issue that in when figuring out the place you’ll probably fall on that whole funding vary.
Past these estimated preliminary prices, there are ongoing charges. Of your product sales, roughly 4% is allotted to a advertising fund and 5% covers royalty charges.
Though the preliminary franchise payment is $50,000, there are methods to decrease it. If you happen to qualify for his or her Veterans Improvement Incentive Program or their Ladies and Minorities Improvement Incentive Program, you might be able to trim $22,500 off the payment and get it to a much more affordable $27,500 charge.
Now let’s see how Popeyes stacks up in opposition to the quick meals competitors by way of the preliminary franchise payment:
As you see, the $50,000 franchise payment is aligned with fellow UBI model Burger King, however it’s positively on the excessive finish for a quick meals franchise.
Popeyes franchise necessities
Popeyes requires franchisees to have a internet price of $1 million per restaurant, $500,000 of which needs to be in liquid belongings. Ideally, Popeyes is in search of franchisees with expertise within the restaurant enterprise. However should you don’t have restaurant expertise, that’s not a dealbreaker. The secret’s basic enterprise expertise and a transparent dedication to Popeyes. If you happen to’re enthusiastic about potential future enlargement, even higher.
Tips on how to grow to be a Popeyes franchise proprietor
If you happen to meet the franchise monetary necessities, maybe you’re prepared to leap proper into the method of changing into a Popeyes franchise proprietor. Right here’s easy methods to get began:
You’ll must contact Popeyes on to allow them to know of your curiosity in changing into a franchisee. The franchising division has its personal devoted e mail handle at [email protected] which you can contact to get rolling.
There’s plenty of data that must be listed in your e mail. Be certain that to incorporate your title, your e mail, your cellphone quantity, your internet price, your liquid belongings, your willingness to relocate, whether or not you could have earlier restaurant expertise, the place you’re at the moment positioned, whether or not you’re keen to relocate, and what number of eating places you’d ideally wish to open.
Be aware that it’s completely essential to incorporate all of the requested data, as Popeyes particularly states that they received’t think about purposes which are incomplete.
As of publication, Popeyes listed particular geographic areas all through the US that they had been focusing on for enlargement. These states are: California, Florida, Kansas, Maine, Michigan, Missouri, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Texas, West Virginia, Wyoming, Vermont, and Virginia. Examine their web site for essentially the most up-to-date information.
Past the monetary concerns, it’s additionally good to bear in mind what Popeyes particularly is in search of within the personalities of their franchisees. They need their franchisees to be excited to develop the Popeyes model, be impartial and a go-getter, present wonderful hospitality, and reside close to their franchise places to allow them to be hands-on.
Get hold of financing on your Popeyes franchise
If you happen to’ve learn this far, you recognize that you simply want a major quantity of capital with a view to be a part of the Popeyes household. The numbers can appear daunting, however there are alternatives out there to help you financially. You may determine that using enterprise financing to assist cowl a few of the massive preliminary prices could be finest.
Fortunately there are a number of choices in that house: SBA loans, conventional financial institution loans, and various funding. And the financing loans aren’t only for general prices, there are particular loans tied to equipment financing should you want help there. If you happen to’ve regarded into beginning a enterprise earlier than, chances are you’ll remember that it’s usually more durable for a brand new enterprise to safe financing. That’s one good thing about being tied to a franchise: They’re considered as decrease dangers, so chances are you’ll discover it much less difficult to be authorised for a enterprise mortgage.
Prime alternate options to a Popeyes franchise
After studying about all the necessities to opening a Popeyes franchise, perhaps you’ve come away leaning towards pursuing one other avenue on your small enterprise desires. That’s honest. There are different franchise alternatives on the market for hen lovers. Listed below are a number of of them
Popeyes was initially began as a competitor to KFC, so should you really feel that the monetary commitments for Popeyes are too excessive (or one thing else is inflicting you to second guess whether or not it’s the fitting alternative), KFC is a strong various choice.
The preliminary franchise payment for KFC is $45,000, which is $5,000 lower than the payment for Popeyes. With regards to ongoing charges for operating a KFC franchise, you possibly can count on to pay 5% of gross income as a royalty payment and 5% of gross income for promoting.
One of many added advantages of changing into a KFC franchisee is the power to open multi-brand places with different Yum! Manufacturers eating places. So should you’re enthusiastic about opening a mixture of KFC, Taco Bell, and/or Pizza Hut underneath one roof, that’s a risk.
If one of many elements inflicting you to query whether or not Popeyes is best for you is the $50,000 franchise payment, Chick-fil-A is likely to be an ideal various for you. Chick-fil-A’s franchise payment is just $10,000—significantly decrease than most of its rivals.
There are a number of potential deal-breakers for these enthusiastic about becoming a member of the Chick-fil-A franchisee household. The most important is that the Chick-fil-A franchise program is designed in order that they keep possession of all actual property and gear. That is nice for maintaining your preliminary franchise prices low, however sadly, it additionally implies that you received’t personal any fairness. So upon your retirement, you can not promote or cross down the restaurant you labored to construct. For a lot of potential franchisees, not having an fairness stake is sufficient to trigger them to look elsewhere for his or her small enterprise desires.
All Chick-fil-A franchises should additionally shut on Sundays—it will lower into your income, but it surely additionally means you solely should work six days every week. So in the end it’s a trade-off that you simply’ll should weigh. We even have to say that Chick-fil-A is not any stranger to controversy and has been topic to boycotts and different destructive press. Nevertheless, the destructive press hasn’t stopped them from being named America’s favourite restaurant chain for six years in a row. So hold that in thoughts, as properly.
If you happen to’re enthusiastic about a hen restaurant, you possibly can go much more area of interest and focus particularly on wings. Wingstop was based in 1994 and has already grown to over 1,000 places worldwide.
Wingstop’s preliminary franchise payment is $20,000 per retailer and their improvement payment is $10,000—each of that are comparatively low, so on the floor it seems to be a fantastic choice. Nevertheless, they’ve a franchise dedication requirement: You possibly can’t open a single Wingstop location, you need to open a minimal of three. So these numbers all must be multiplied by three with a view to get the true preliminary required dedication: a $60,000 franchise payment for 3 shops and a $30,000 improvement payment.
For ongoing charges, Wingstop fees a royalty payment of 6% of product sales, a advertising payment of 4%, and an area promoting and promotional payment of 1%. That 11% whole is barely increased than their rivals. Popeyes ongoing charges whole 10%, for instance.
The underside line
Opening a Popeyes franchise is an enormous dedication—each financially and professionally. Earlier than leaping into it, just be sure you’ve discovered a viable path to financing and are ready for the effort and time you’ll should commit with a view to guarantee what you are promoting is successful.
Taking that every one into consideration, should you love that hen from Popeyes and are prepared to fulfill all of the potential challenges which will come your method as a franchisee, then opening a Popeyes franchise is likely to be the trail to small enterprise possession that you simply’ve been in search of.
This text initially appeared on JustBusiness, a subsidiary of NerdWallet.