Want to own a Popeyes Franchise but hesitant to make the move because you’re not sure of what it will REALLY cost you? We’re going to break down most of the major costs to give you a realistic idea of what it will actually cost to own a Popeyes Franchise.
The Popeyes franchise underwent multiple ownership and changes throughout the years. It’s been renamed and rebranded several times and finally settled on Popeyes Louisiana Kitchen. The Popeyes franchise is currently crowned as the second-largest chicken franchise globally only tailing behind Kentucky Fried Chicken.
The 19 Steps Franchise Process
If you were to visit the Popeyes website and try to find information about franchising, you may be discouraged by their 19-steps franchising process. It is extensive, and for good reasons. A Popeyes franchise is a major commitment and they want to make sure you’re absolutely serious about the opportunity.
One of the major obstacles in the 19-steps process is credit verification. Popeyes will do a credit check to make sure you have a high enough credit to own their franchise. This is where many prospective buyers are turned down despite having all other requirements.
How Much Is A Popeyes Franchise?
If you’re serious and have met the requirements, then you’re ready to evaluate the financial commitment of owning a franchise. We estimate the cost to be anywhere from $383,500 to $2,620,800 for your initial setup and the cost to operate for the first three months. Keep in mind, this is just the setup and operation cost and doesn’t include the purchase of land or real-estate.
The data above is taken directly from Popeye’s FDD.
Cost Breakdown
Name of Fee
Low
High
Franchise Fee
$50,000
$50,000
Real Estate and Improvements
Variable
Soft Costs
$8,000
$265,000
Site Work
$0
$650,000
Building
$100,000
$1,025,000
FF&E Signage and Technology
$165,000
$485,000
Initial Training
$17,200
$24,200
Opening Supplies
$11,500
$23,000
Insurance
$9,000
$18,000
Utility Deposits
$2,500
$50,000
Business licenses
$300
$600
Additional Funds (3 months)
$20,000
$30,000
ESTIMATED TOTAL
$383,500
$2,620,800
The estimated initial range covers from an “In-Line” restaurant size up to “Free Standing” restaurant size. In-Line and Free Standing are the two main restaurant types Popeyes offers for its brand.
In-line Vs Free Standing
Popeyes offers two types of restaurants that you can own, In-line and Free Standing.
In-line Stores: These are usually smaller versions of what a larger store would be. They’re typically located in strip-style locations, malls, and food courts.
Free Standing: As the name suggests, these are the full-size stores. Typically occupying a much larger space. They’re usually a single building being the only tenant for that location. You can usually work out a deal with landlords to build out the location to meet your requirements.
Other Hidden Costs
There are other hidden costs that first-time franchise owners may not be aware of, especially for a Free Standing location. You may also be responsible for
Buying real estate
Construction
Renovations
Signage
Legal fees
Accounting fees
The costs of the above can vary greatly depending on your location.
Franchise Fee
Your costs didn’t stop there. In addition to all of the above, be prepared to pay a franchise fee to Popeyes. It’s a common fee and not anything proprietary to Popeyes. The fee typically covers the administrative cost of entering you into their system, training, and consultation hours needed to get your feet wet.
The franchise fee also covers any trademarking costs and grants you the privilege to use their proprietary systems.
You can get this fee reduced if you qualify for their Veterans Development Incentive Program or Women And Minorities Development Incentive Program. More information about both programs is available on Popeyes website.
For more information on other franchising opportunities, visit Franchise How.
