Pollo Campero

Date Incorporation: 2001

Franchising Since: 2001

Headquarters: California

Description: Pollo Campero restaurants serve uniquely flavored Polio Campero chicken products, including special menu items such as fried and grilled chicken, marinated and breaded with a secret formula.

Franchise Offer: 3 types of franchise offered:

  1. Freestanding Units - "Freestanding Units" are specially designed restaurants that do not share common waits with any third party. Freestanding units contain plenty of parking and drive-thru service. Inside, the restaurant offers prompt and courteous counter service or carryout. Outside playgrounds may be an added attraction for family members.
  2. In-Line Units - "In-Line Units" are restaurants that share a common wall with a third party and are often located in strip malls. The location would have heavy foot traffic and offer all services except drive-thru and parking facilities.
  3. Express Units - "Express Units" are restaurants suited to some urban areas and special venues where conditions require a more concise format (e.g., malls, airports, etc.).

Financial Assistance: The franchisor does not offer any direct or indirect financing.

Training and Assistance: The initial training program is available to 3 individuals designated by the franchisee as management employees. The training will consist of classroom training and is located in Los Angeles, California.

Territory: The franchisee will be granted a protected territory. The scope and size of the territory shall be based upon the following factors: general location, traffic patterns, parking availability, size of site in relation to building type, access, visibility, area demographics, population density, surrounding area commercial activity, and market demands.

Term of Agreement and Renewal: The length of the franchise term is 20 years, with no option for renewal.

Obligations and Restrictions: The franchisor recommends that the franchisee actively participates in the direct operation and daily affairs of the restaurant. The franchisee must act as the restaurant's general manager or employ on a full time basis at least 1 general manager for the restaurant.

Total Number of Units: 280 outlets at the end of 2007

Total Number of franchises Units: 35 franchised outlets at the end of 2007

Investment Tables:

Initial Investment: (for a free standing unit)

Expenditures Low High
Area development fee $100,000
(assuming a mandatory development schedule of 5 restaurants at $20,000 per restaurant)
$100,000
{assuming a mandatory development schedule of 5 restaurants at $20,000 per restaurant)
Initial franchise fee $20,000 $20,000
Permits & licenses $10,000 $12,000
Construction and leasehold improvements $650,000 $950,000
Furniture, fixtures & equipment $400,000 $500,000
Smallwares $9,000 $9,000
Point of Sale system $25,000 (3-5 stations pending on drive-thru capabilities) $35,000 (3-5 stations pending on drive-thru capabilities)
Signage $50,000 $60,000
Travel & living expenses while training $0 $15,000
Opening inventory and supplies $8,000 $10,000
Advertising (first 3 months) $10,000 $30,000
Miscellaneous opening costs $10,000 $14,000
Rent (first 3 months) $25,000 $30,000
Start-up costs $15,000 $30,000
Insurance (first 3 months) $2,400 $3,000
TOTAL for the development of first restaurant and entering into the area development agreement for development of 5 restaurants $1,234,400 $1,726,000

 

Ongoing fees:

Name of Fee Amount
Continuing franchise fee 5.5% of weekly gross sales
Territory advertising fund 1% of gross sales to our territory advertising fun
Local advertising 4% of gross sales
Yellow Pages advertising Cost of advertisement
Collection costs, attorneys' fees, interest Fees and costs incurred/interest at 18% or highest lawful interest rate for commercial transactions
Insurance Cost of insurance. If the franchisee fails to maintain their insurance as required, there is an 18% administrative cost charge if the franchisor procures the insurance
Audit expenses Cost of audit and/or inspection
Taxes on payments Amount of tax or assessment
Franchise transfer fee {transfer of control to third parties, other than spouse of children) ½ of then current initial franchise fee
Franchise transfer fee (transfer of less than control to third parties, other than spouse of children) $5,000
Franchise transfer fee (transfer to spouse of children) $5,000
Transfer (area development agreement) $3,000 for each additional franchise agreement remaining under the mandatory development schedule
Additional training
Indemnification Amount of claim or judgment
Supplier approval/testing costs $1,000 currently
Late fee/ insufficient funds Currently $100 plus interest at 18% or highest lawful interest rate for commercial transactions
Ongoing assistance The then-current fee, currently $500 per day, plus expenses
MenuLink software fees Currently a one-time payment of $3,600 per Store and $1,000 annual maintenance fee

 

The above information has been taken from the UFOC/FDD of Pollo Campero

Franchise Direct's Disclaimer

 

 


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