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:
- 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.
- 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.
- 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
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