About Popeyes® Louisiana Kitchen Franchise
Popeyes® Louisiana Kitchen is a world-famous and well-established global brand. Popeyes® has over 2,700 restaurants worldwide, making it one of the world’s largest chicken chains.
If you are thinking of opening a franchise then Popeyes® Louisiana Kitchen might be the perfect opportunity. Fransmart, the leading franchise development company for emerging brands offers this guide to buying a Popeyes® Louisiana Kitchen franchise, as well as other newer brands an investor should assess before making any final decision.
Types of Franchises offered by Popeyes® Louisiana Kitchen
This restaurant adheres to a different kind of franchising model. A consequence of this is that franchisees must be experienced in running a QSR in their area and be familiar with the retail development of the chosen market. This results in limited franchising opportunities, which is not the case if you start your own Brooklyn Dumpling Shop, Curry up Now, or Ike’s Love and Sandwiches franchise.
How to Open the Franchise?
There is an entire procedure to follow when applying for a Popeyes® Louisiana Kitchen franchise. The whole recruitment and selection process can take up to 4 months. The steps are as follows
- Complete the Corporate International Application Form
- Meet the Franchisee Criteria
- Combine Financial and Personal information
- Carry out local market research
- Identify suitable locations
- Figure out the supply chain
- Sign the Franchise Agreement.
You can read more information on their official website.
Eligibility Criteria
Being one of the leaders in this industry, Popeyes has a strict set of criteria for who it will choose to team up with, which makes it unfavourable to buy Popeyes® Louisiana Kitchen Franchise. Franchisors only want to work with the best entrepreneurs in this industry and need several qualifications to become franchise owners. Let us look at the eligibility standards necessary to start your Franchise in the US.
- Franchise owners should have a net worth of $1 million. They must have liquid assets of at least $500,000.
- A franchisee should have experience working in the fast-food industry and own a restaurant to succeed in this field.
The cost of buying Popeyes® Louisiana Kitchen Franchise
Franchising is a significant investment. Different costs and expenses associated with getting a franchise can vary quite a bit regarding how much you need to invest and what percentage your royalty will be for doing so. Let us look at the cost of buying the Popeyes Louisiana Kitchen Franchise.
| Name of Fee | Low | High |
| Franchise Fee | $2,500 | $50,000 |
| Real Estate and Improvements | Variable | |
| Soft Costs | $1,000 | $400,000 |
| Site Work | $2,500 | $650,000 |
| Building | $0 | $1,600,000 |
| FF&E Signage and Technology | $75,000 | $700,000 |
| Initial Training | $17,200 | $24,200 |
| Opening Supplies | $3,000 | $23,000 |
| Insurance | $3,000 | $18,000 |
| Utility Deposits | $2,500 | $50,000 |
| Business licenses | $300 | $600 |
| Additional Funds (3 months) | $2,500 | $30,000 |
| ESTIMATED TOTAL* | $109,500 | $3,545,800 |
How to Finance your Popeyes® Louisiana Kitchen Franchise
Buying a Popeyes franchise is again a low-fee franchising opportunity. Even if some aspiring entrepreneurs find it hard to meet the required Liquid capital, there are several ways to finance it from the outset to allow you to run your business smoother. One way is to consider Small Business Administration (SBA) loans and small business bank loans. Additionally, there are specific loans for financing equipment that one could negotiate with franchisors.
Advantages and Disadvantages of Popeyes Louisiana Kitchen Franchise
There are various advantages and disadvantages to buying a franchise. Let us look at why you should buy the Popeyes Franchise.
- Granted Territory- The deal between a franchisor and a franchisee is that when the franchisee buys a franchise, it can be for one locality or multiple points in the exact location. This agreement helps create stability and grants assurance to both parties that neither will have competition from another franchisee within their territory.
- Training given to Employees- All franchisee’s management team members must complete a Popeyes Management Certification Program. The program covers operations and working standards for the restaurant according to industry guidelines.
Along with the advantages, there are various disadvantages of buying Popeyes Louisiana Kitchen Franchise, which is not the case with other affordable franchises, which you can read over here.
- Long-term commitment– According to the company website, the initial franchise term is 20 years. If you choose to renew your agreement and remain within the company’s service area, your renewal will be for another ten years.
- No Financial Assistance– One of their critical policies surrounding business financing as nearly all of their operations are franchised. As opposed to Chick-fil-A restaurants, Popeyes Restaurant has to be very strict about its franchisee’s rules. They require every entrepreneur that purchases a franchise to have proper funding for their businesses. Entrepreneurs are left without any sense of security or stability, creating a rather uncomfortable situation for everyone involved, which is not the case with other franchises.
Popeyes Louisiana Kitchen: A good investment in 2022?
Given the strength of its branding, tested systems, and successful legacies, purchasing a Popeyes® Louisiana Kitchen Franchise is indeed a lucrative business opportunity. With the aid of its distinctive menu, although businesses stand a chance for success, Dan Rowe of Fransmart believes that there are too many concerns to giving it a shot.
There is considerable speculation about lawsuits against Popeyes, which has tarnished their reputation. One concern, in particular, pertains to hygiene at Popeyes; this system is not up to the mark compared to that of their competitors. We at Fransmart suggest you should invest in buying multi-bagger franchise opportunities, including