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Popeyes Chicken & Biscuits Franchise Cost & Fees

Date Incorporation: 1992

Franchising Since: 1976

Headquarters: Georgia

Description: Popeyes Chicken & Biscuits is a quick-service restaurant offering a limited menu of breakfast, lunch and dinner products. The restaurants feature fried chicken, biscuits and other related fast-food service menu items. A Popeyes restaurant may feature a walk-in format, drive-thru, sit-down, or some combination of these types of formats.

Franchise Offer: The franchisee must sign a Popeyes Chicken & Biscuits development agreement regardless of the number of restaurants you commit to develop. The development agreement provides limited exclusivity for a specific geographic area defined in the agreement. Each restaurant is operated under a Popeyes Chicken & Biscuits franchise agreement. Under the franchise agreement, the franchisor grants the franchisee the right to establish and operate a restaurant.

Financial Assistance: No direct or indirect financial assistance is offered by the franchisor.

Training and Assistance: An initial training program (Popeyes Restaurant Management Training program - RMT) will be available for a minimum of 4 designated management employees, the operating principal for the restaurant.
The RMT program includes product management, shift management, and general management segments, including a general management workshop.  RMT program lasts 7 ½ weeks. The first 2 ½ weeks are the product management segment and consist of an indoctrination and orientation to each of the job-station areas and restaurant administration management. The next 4 weeks cover the shift management segment, including a one-day shift management workshop. The last week is the general management segment which consists of a workshop and in classroom instruction with an emphasis on labor scheduling limited time product management, employment regulations, performance management and time management. For the first restaurant opened under the development agreement, the franchisor will provide a representative to be present at the opening. Additional training will be available after opening, as well as advisory assistance in the operation of the restaurant, in person or by bulletins.

Territory: The franchisor offers two types of development rights -one provides limited, territorial exclusivity (exclusive development agreement) and the other provides no territorial exclusivity (non-exclusive development agreement). If the franchisee signs an exclusive development agreement, they will be granted a geographic area within which the franchisor will not open, nor license anyone other than the franchisee to open a restaurant until 60 days after the expiration of the development schedule set out in the agreement, subject to the other terms of the agreement. If the franchisee signs a non-exclusive development agreement under an amendment to the development agreement, they will not receive an exclusive territory and the franchisor may establish other franchised or company-owned restaurants in the development area that may compete with the franchise location. When the franchisee signs a franchise agreement, they will be granted a geographic area within which the franchisor will not open, nor license anyone other than the franchisee to open a Popeyes restaurant during the term of the franchise agreement.

Term of Agreement and Renewal: The term of the franchise agreement is 20 years that can be renewed for 10 years, subject to contract and an option to purchase up to 2 additional 10-year supplemental renewal terms.

Obligations and Restrictions: If more than one individual or a legal entity such as a corporation, partnership or limited liability company owns the franchise, the franchisee must designate and retain an individual to serve as the operating principal of the restaurant. The operating principal must have at least a 5% ownership interest in the restaurant. The operating principal must have full control over the day-to-day operations of the restaurant and any other Popeye’s restaurants owned by the franchisee located in the same geographic area. The operating principal must devote full-time and best efforts to supervising the operation of the restaurant(s) and not engage in any other business or activity that requires substantial management responsibility. In addition, the franchisee's restaurant must at all times be under the direct, on-premises supervision of an RMT Certified Manager who is designated to have primary responsibility for its operation. If the franchisee is an individual, the franchisor recommends, but does not require, that they be the manager. The operating principal may serve as the manager. The manager must devote full-time energy and best efforts to the management and operation of the restaurant. The franchisee must offer for sale and sell at the restaurant all and only those products and services as are expressly authorized in the manual or otherwise in writing.

Total Number of Units: 1580 units by year end 2007

Total Number of franchises Units: 1518 franchised units by year end 2007

Investment Tables:

Initial Investment:

Free-standing

Expenditures Low High
Development fee $7,500 $7,500
Initial franchise fee $30,000 $30,000
Real estate and improvements Varies
Equipment, furniture and signs $180,000 $250,000
POS system $25,000 $35,000
Initial training $15,000 $22,000
Opening supplies $4,500 $10,000
Insurances $7,500 $10,000
Utility deposits $2,500 $5,000
Business licenses $300 $600
Additional funds (3 months) $20,000 $30,000
Total $292,300 $400,100

 

In-line

Expenditures Low High
Development fee $7,500 $7,500
Initial franchise fee $30,000 $30,000
Real estate and improvements Varies
Equipment, furniture and signs $125,000 $250,000
POS system $15,000 $25,000
Initial training $15,000 $22,000
Opening supplies $4,500 $10,000
Insurances $7,500 $10,000
Utility deposits $2,500 $5,000
Business licenses $300 $600
Additional funds (3 months) $20,000 $30,000
Total $227,300 $390,100

 

Ongoing fees:

Name of Fee Amount
Royalty fee 5% of gross sales
Advertising fund contribution 3% of gross sales
Advertising co-o As established by local advertising co-op
Renewal 50% of then-current, standard initial franchise fee
Trade secret products Approximately $3,000 initially; approximately $3,000 per month when in operation

 

The above information has been taken from the UFOC/FDD of Popeyes Chicken & Biscuits

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