El Pollo Loco
Date Incorporation: 1989
Franchising Since: 1980
Headquarters: Costa Mesa, California
Description: EI Pollo Loco franchisees operate quick-service restaurants that offer and serve flame-grilled food items and related products and services, featuring Mexican-style flame-broiled chicken.
Franchise Offer: El Pollo Loco is offering to types of franchises; a single restaurant or multiple restaurants under a development agreement.
Financial Assistance: The franchisor does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation. The franchisor may occasionally attempt to identify lenders willing to extend financing to the franchisee.
Training and Assistance: If the restaurant is either the franchisee's first or second El Pollo Loco restaurant, the franchisor will provide initial training to the franchisee, their operations director and a minimum four of their managers. The initial training for a general manager consists of 40 days over an eight-week period. The initial training for an assistant manager consists of 35 days over a seven-week period. The initial training for the executive franchisee training program consists of 10 business days typically over a continuous two-week period. The program consists of hands-on training in the operation and management of the restaurant.
Territory: The franchisee will not receive an exclusive territory under the franchise agreement.
Term of Agreement and Renewal: The term of the franchise agreement is 20 years and can be renewed for a 10-year successor franchise, under certain conditions.
Obligations and Restrictions: The franchisee must participate personally in the direct operation of the El Pollo Loco restaurant. The franchisor rthe franchisees direct on-premises supervision to promote restaurant performance. El Pollo Loco restaurant shall be managed by not less than 4 managers who have successfully completed the El Pollo Loco management training program approved food items may be sold in the restaurant. The franchisee must offer at the restaurant all those products and services required by the franchisor, including those items specified in the standard El Pollo Loco menu, plus specials and featured items designated.
Total Number of Units: 413 units by year end 2008
Total Number of franchises Units: 248 franchised units by year end 2008
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Franchise fee | $40,000 | $40,000 |
| Lease payment | $3,350 | $13,350 |
| Architectural design | $15,000 | $65,000 |
| Equipment, fixtures and furnishings | $275,000 | $425,000 |
| Computer-based cash control system and restaurant management or “point of sale system”, point of sale equipment | $20,000 | $40,000 |
| Signs | $6,000 | $50,000 |
| Expenses for initial training | $10,000 | $20,000 |
| Opening inventory and supplies | $9,000 | $12,50 |
| Lease security deposits | $5,000 | $10,000 |
| Insurance | $3,000 | $6,000 |
| Grand opening fee | $5,000 | $5,000 |
| Additional funds (3 months) | $25,000 | $100,000 |
| Site selection costs (if the franchisor visited more than 2 sites) | $500 | $3,000 |
| Total (exclusive of real estate, site improvements and building costs) | $416,850 | $789,850 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty fee | 4% of monthly gross sales |
| Advertising | 4-5% of monthly gross sales |
| Reimbursement for taxes, products, services and other payment | Actual cost |
| Computer systems maintenance and support | Varies |
| Intranet fee | Reasonable cost up to $1,000 annually per restauran |
| Franchise page fee (on Internet) | Reasonable cost up to $1,000 annually per restaurant |
| Customer feedback program | Varies |
| Catering program catering orders through 888-EPL-ToGo | $5.00 each |
| Gift card | Varies |
| Broker fees | 3-5% of lease value |
The above information has been taken from the UFOC/FDD of El Pollo Loco
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