Popeyes Franchise Cost Owners Profit Reviews and Requirements Now

 

Popeyes has a more than 50-year history, and it was first established in New Orleans, Louisiana. Popeyes sets itself apart from competitors with a distinctive New Orleans-style menu that includes a variety of dishes such as Chicken Sandwich, Chicken Tenders, and Popeyes Signature Chicken. Popeyes franchise is known to be one of the most well-renowned chicken fast-service restaurants across the globe. 

With more than 3,300 locations worldwide, Popeyes is one of the largest chicken fast-service restaurants due to its commitment to its Louisiana roots and flavorful authentic food. 

According to Ibisworld, the fast food chicken franchises market size is $55.6 billion in the United States with an expected growth rate of 1.1% in 2023. Cumulative Market growth for 2018 to 2023 is anticipated at 8.4%.

What is the Popeyes?

Popeyes Louisiana Kitchen, Inc., also known as Popeyes and formerly known as Popeyes Famous Fried Chicken & Biscuits and Popeyes Chicken & Biscuits, is an American fast-food restaurant headquartered in Miami, FL that was started in 1972 in New Orleans, LA.

It is a global fast-food fried chicken restaurant chain. Popeyes Chicken franchise opportunities have expanded to 2,600 locations that provide not only fried chicken but also seafood, desserts, sides, and beverages. By purchasing a Popeyes Louisiana cooking franchise, you become a part owner of a successful, profitable brand that consumers all over the world adore.

Is Popeyes a  Franchise Opportunity?

Popeyes is indeed a franchise opportunity. Potential franchise owners are provided with an option to open free-standing and in-line restaurants, along with delivery restaurants.

Facts That Nobody Told You About Popeyes

• The chain was saved by its spice mix. 
• Chicken’s spice recipe was bought by the chain for $43 million.
• Beyonce has been awarded a lifetime supply. 
• The chicken tenders offered by them prove to be the healthiest treat. 
• It offers a chicken sandwich that is considered to be better than Chick-Fil-A’s. 
• Their jingle was written by Dr. John. 
• The founder was just 28 and also owned a comedy club. 
• The name was not after the famous cartoon character Popeye. 

Popeyes Franchise Review and Information

Industry Type	Food Franchise    Opportunties
Sub Category	Chicken Franchise Opportunities
Year Established	1972
Company Name	Popeyes
Founder/Management Head	Al Copeland
Franchising Started	1976
Franchise Expansion Plan	US, Canada, and other parts of the world
Number of Units	3,451
Number of Franchise Units	2,736
Social Media Handles	Facebook
	Twitter
	Youtube
	Instagram
Company Office location	Miami, Florida

Popeyes Franchise Requirements

Their objective has always been to provide franchises to the most qualified individuals in each area, those who have a demonstrated history of success in business.

Since franchisees are crucial to their success, they are aiming to deepen their relationship with highly skilled people who have the ideal combination of knowledge and zeal. The following requirements should be met by their candidates:

• Strong commercial experience
• A track record of running or owning restaurants
• Prior franchise experience
• Net worth of $500,000 
• Cash requirement of $600,000
• Popeyes Chicken & Biscuits’ commitment to expansion

Popeyes Chicken & Biscuits is dedicated to the accomplishment of their franchisees and brand. Everything about the restaurant, from the varied and distinctive food options to the creative building designs, is intended to give franchisees development alternatives.

How much does a Popeyes franchise cost?

The franchise cost of a Popeyes franchise can be summarized as below

• Initial franchise fee: $2,500-$50,000
• Initial investment: $109,500 to $3,545,800
• Net worth: $500,000
• Cash requirement: $600,000

Further, the royalty fee and advertising fee to become a franchisee is 5% and 4% respectively.

How much does it cost to franchise a Popeyes in the United States?

Popeyes Franchise Startup and On-going Franchise Costs
Popeyes Franchise Fee	$2,500-$50,000
Popeyes Franchise Cost	$109,500-$3,545,800
Royalty Fee	5%
Advertising Fee	4%
Term of Agreement	10 years
Is franchise term renewable?	Yes
Veteran discount	Yes

How much do Popeyes franchise owners make?

I will estimate Popeyes Brand franchise profit and years to recoup the investment (ROI) for In-Line restaurants and Free-Standing restaurants. 

• For In-Line Restaurants

AUV	Estimated Annual Profit (15%)	Estimated Annual Profit (20%)	Estimated Annual Profit (25%)
$	$241,918	$322,557	$403,196
Recoup mid-point$873,150	5 years	4 years	3.5 years

The estimated Popeyes franchise profit for In-Line restaurants is in the range of $241,918 to $403,196 and it will take 3.5 to 5 years to recoup the investment. 

According to industry standards, getting a return on the franchise investment will take a very long time. 

• For Free-Standing Restaurants 

AUV	Estimated Annual Profit (15%)	Estimated Annual Profit (20%)	Estimated Annual Profit (25%)
$	$265,514	$354,019	$442,524
Recoup mid-point$2,315,900	10.25 years	8 years	6.75 years

The estimated Popeyes franchise profit for Free-Standing restaurants is in the range of $265,514 to $442,524 and it will take 6.75 to 10.25 years to recoup the investment. 

According to industry standards, getting a return on the franchise investment will take a very long time. 

What is Popeyes franchise profit?

According to Popeyes FDD, operating profits per restaurant were on average $312,782.  This figure represents the profit before taxes, expenses, and debt interest are taken into account. 

The business, which is highly profitable in the US and Canada, wants to expand worldwide into Asia because fried chicken joints do well there. Because the company saw good growth for 5 straight quarters, the leadership has recently shown that they can carry out their business plan.

Due to the multiplicity of variables that affect franchise profits, a franchise’s average profit margin can be expected to be very high. For instance, a franchise that requires a brand-new facility will have to spend more on building expenses and might not see the same returns as a business with minimal to no building expenses. Having stated that, the amount could range from $50,000 to $200,000.

Popeyes Training to Franchises

The Popeyes Training Program (PTP) for their relevant management function at the franchised restaurant must be successfully completed by a selected group of the franchisee’s management personnel. A minimum of five designated management personnel, including the managing director, must successfully complete PTP for their relevant management role at the restaurant if the franchised restaurant is the franchisee’s first Popeyes restaurant. The franchisor will determine the final number.

PTP is typically six to ten weeks long, with the first two to four weeks being an orientation and team member station training up until the trainee reaches the franchisor’s competency standards. Training modules for a shift manager, assistant shift manager, and restaurant general manager will also be covered over the course of the following four to six weeks.

The duration of the remaining PTP modules can range from 20 to 50 hours overall. Sometimes, the franchisor may also make additional training programmes that it conducts at its discretion available to franchisees or the staff of those franchisees. Some training sessions tend to call for mandatory attendance.

Popeyes Franchising Operations 

Popeyes restaurant franchises can be found in malls, free-standing structures, storefront sites, and a variety of other locations both in urban and suburban areas as well as within other communities. Walk-in, drive-thru, sit-down, takeaway, delivery, and any combination of these formats are all possible at Popeyes locations.

How is Popeyes Territory Granted to Franchises

Franchisees are given a territory where, for the duration of the Franchise Agreement, the Franchisor will not open a Popeyes restaurant or award a license to anyone else to open a Popeyes restaurant when they sign a Franchise Agreement for a franchised location that fails to be an alternate venue.

The protected area will be the area that is equivalent to the smaller of the following: 

• A 1-mile radius around the franchised restaurant
• An area around the franchised restaurant having a population of 50,000 persons

The protected area’s restricted exclusivity is not applicable to any of the following: 

• Currently operating Popeyes restaurants
• Any closed Popeyes restaurants that may reopen within three years of their closing date
• Restaurants for which have already been awarded franchise agreements 

Periodically, the franchisor may reduce or alter the protected area to account for changes in the population. If the protected region is smaller than one mile, it will still always have a population of at least 50,000 people.

                                                                                 

What is Popeye Franchise Term of Agreement and Renewal?

The initial term of the franchise is 20 years from the day the franchised restaurant opens for business. There is an opportunity to acquire up to one additional 10-year Supplemental Renewal Period subject to contractual restrictions in addition to one 10-year renewal term. If franchisees run a restaurant that delivers, there is no possibility for renewal.

Does Popeyes provide Financial Assistance to Franchises?

In general, franchisees receive no direct or indirect financing from the franchisor. The note, lease, or obligation of a franchisee is not guaranteed by the franchisee. Franchisees who may owe money to the franchisor or to one of its affiliates possess the right to sell, assign, or otherwise discount all or a portion of that money to a third party. The location may be leased or subleased to the franchisee if the franchisor owns or leases the land, or the land and building, of the franchised restaurant.

 

Pros & Cons of owning a Popeye franchise

Pros

• Growing brand

• Entrepreneurial spirit 
• Constantly-updated menu

• Steady support
• Profitable
• Brand name recognition 
• Training for new franchises
• A Small number of franchised locations

Cons

• Questionable hygiene at Popeyes locations
• High initial investment
• Franchise fee
• Extensive and prolonged training

What are Popeyes franchise reviews?

When Popeyes Louisiana Chicken launched a chicken sandwich to their menu in 2019, it garnered significant media attention. Chicken enthusiasts waited in line outside of franchise stores all over the country to get the hot sandwich, which was in fact sold out nationally. So, the fact that Popeyes has a devoted and passionate following is well known.

A significant financial and professional investment is required to launch a Popeye franchise. Make sure you have a realistic plan for financing before you start and that you are willing to put in the time and effort necessary to make sure your business is successful.

If you have always wanted to own your own business and you “love that chicken” from Popeyes, opening a Popeye franchise could be the perfect fit for you.

Is Popeyes profit worth the franchise cost?

A Popeye In-Line Restaurant franchise would sell for $2,257,901 if it had a 7x EBITDA multiple and expected cash flow of $322,557 in 2021. This is significantly more than the $873,150 midpoint investment. A Popeye’s Free-Standing Restaurant franchise would sell for $2,478,134 if it had an EBITDA multiple of 7x and a cash flow of $354,018 in 2021. This is a little more than the $2,315,900 midpoint investment.

Your earning potential increases when you own more franchises since private equity firms, rather than lone owner-operators, are more likely to be interested in your company.

Popeyes Franchise Rankings

Rank	Year	Achievement
#2	2023	Franchise 500 Ranking
#1	2023	Chicken Category
#9	2022	Fastest-Growing Franchises (US & Canada)
#15	2022	Top Global Franchises
#1	2022	Top Food Franchises
#16	2022	Fastest-Growing Franchises
#1	2021	Best of the Best (in chicken)

Franchise Deck Analysis and Overview

Popeyes is known for its delectable and unforgettable fried chicken. They are dedicated to providing good, economical, and quick meals. Popeyes Louisiana Restaurant, famous for its New Orleans-style fried chicken, offers delicious flavors at an affordable price.

Popeyes Louisiana Kitchen, one of the top fast-food restaurants in the United States, makes it a point to provide tasty quick food to keep customers coming back for more. All things considered, if you enjoy Popeyes chicken and are willing to take on any problems that may arise as a franchisee, starting a Popeye franchise may be the route to the small business ownership you have been searching for. 

Popeye’s is a growing restaurant chain in the fast-food industry and offers people the opportunity to be a part of a business that has strong returns if they can get in properly. Our suggestion is to thoroughly study potential locations for your Popeye’s restaurant and to speak to at least 3 – 5 franchise owners before opening a franchise. 

Popeyes Franchise Success and Failure Rate

Popeyes Louisiana Kitchen began as a mom-and-pop restaurant before expanding into what it is today;  that was accomplished via perseverance and a strong entrepreneurial spirit. They prefer experienced business owners that understand how to navigate the QSR industry and are eager to take on the task of expanding the Popeyes brand. But you do not need any expertise to open a location; Popeyes is pleased to assist you in growing as a business owner.

The below table will highlight the Popeye franchise success and failure rate for the last 3 years. This will supplement your decision-making process.

Year	Format	Start	End	Change
2019	Franchise Owned	1095	1199	+104
Company Owned	29	31	+2
2020	Franchise Owned	1199	1320	+121
Company Owned	31	32	+1
2021	Franchise Owned	1320	1485	+165
Company Owned	32	36	+4

Competition Analysis of Popeye Franchise
Popeyes	Cost to Franchise	Franchisee Fees	Royalty + Ad fees	Expected Profit	Recoup of Capital	FD Rating
Popeye Franchise	$109,500-$3,545,800	$2,500-$50,000	5%+4%	$50,000 – $200,000	3.5-10.25 years	4/5
Jack in the Box Franchise	$1,697,000-$2,694,600	$50,000	5%+5%	$196,906-$283,545	7.5-11 years	3/5
KFC Franchise	$1,442,550 – $2,771,500	$45,000	5%+5%	$120,000	11-20 years	4/5
Buffalo Wild Wings Franchise	$2,481,500-$4,604,800	$25,000	5%+3.25%	$3.669 billion	5-8 years	3/5
Wendy’s Franchise	$2-$3.5 million	$40,000	4%	$ 330490 to $ 440653	8 to 12 Years	4/5

The Franchise Deck rating for the Popeye franchise is 3.9/5.0.

Conclusion 

A typical Popeyes franchise owner has prior restaurant experience as well as the financial means to manage a successful operation. You need to be someone searching for a proactive investment opportunity that is willing to take on the difficulties of this developing company. Being a self-starter, goal-oriented, and interested in starting your own business are all important attributes. Dedication and attention are essential, and you should reside near the restaurant you intend to open.

Popeyes Louisiana Restaurant is committed to ongoing expansion and is actively seeking qualified Popeye franchise. Their marketing is always cutting-edge, so you can be confident that your restaurant will stay in force within the fast food sector.

It’s strong branding, proven and tested methods, and distinct menu position the company well for success in the extremely profitable US fast food sector, which is dominated by huge foreign brands.

Entrepreneurs who want to open a franchise in the donuts and desserts  franchise opportunities categories can look at

1. KFC Franchise
2. Jack in the Box Franchise
3. Buffalo Wild Wings Franchise
4. Wendy’s Franchise 
5. Pluckers Franchise
6. Raising Cane’s Franchise
7. Chicken Salad Chick Franchise
8. Dave’s Hot Chicken Franchise 
9. Chicken Guy franchise 
10. Halal Guy Franchise
11. Zaxby’s Franchise
12. Philz Coffee Franchise
13. Playa Bowls Franchise
14. Ziggis Coffee Franchise
15. Rascal House Franchise
16. Oumi Sushi franchise
17. Flame Broiler
18. White Castle franchise

Frequently Asked Questions (FAQs)

1. Is Popeyes franchise profitable?

Yes, a potential franchisee can profit from owning a Popeye franchise. However, before beginning a franchise, it is essential to comprehend the company’s criteria and obligations put forward by the company. 

2. Can you make money owning a Popeyes?

Yes, a franchise owner can make money by owning a Popeyes. 

3. Is Popeyes a franchise?

Yes, Popeyes is a franchise. The brand started franchising in 1997 and has franchised over 3705 locations. 

4. How much is the Popeyes franchise?

To open a Popeye franchise, a potential franchise is required to have the following

• Initial franchise fee:  $2,500-$50,000
• Initial investment: $109,500-$3,545,800
• Net worth: $500,000
• Cash requirement: $600,000