Rsloft

Rsloft

Popeyes Franchise Cost Detailed



Popeyes Louisiana Kitchen is a quick-service restaurant specializing in the sale of fried chicken, seafood, etc. The company was founded in Minnesota in 1992 under the name America’s Favorite Chicken and did not get the name of Popeyes Louisiana Kitchen until 2014. In 2017 Popeyes was acquired by Orange Inc, which then merged into the company.

Popeyes authentic “Louisiana Style” menu has made it famous all around the country. Currently, there are more than 2,600 Popeyes outlets around the country and that number is only getting bigger.

Visit the franchise profile on Vetted Biz: https://www.vettedbiz.com/popeyes-franchise-cost-detailed-2022/

Want to speak with a franchise specialist about Popeyes or another franchise? Click here: https://share.hsforms.com/1ZtNM19w4R8WIXyNa_97N7w4e0xw

00:00 Introduction
00:39 Locations & Competition
00:59 Investment Range, Franchise Fee, On-Going Royalty, Advertising Fee & Time to Recoup Investment
01:53 The Key To Making Your Money Back Faster
02:43 Conclusion

#PopeyesFranchiseCostDetailed #PopeyesFranchise #VettedBiz

Sami Siddiqui is the President of Popeyes Louisiana Kitchen, which is currently owned by Restaurant Brands International.

Competitors of Popeyes include other franchises in the fast-food industry such as McDonald’s, Subway, KFC, Burger King, and other Popeyes nearby. Nearby restaurants with healthier food options are also competitors.

We will analyze if the initial cost is worth the potential returns.

The standard fee for a Popeyes franchise is $50,000. The upfront fee must be paid before opening the restaurant. A fee of the same amount is due for every additional unit you may open.

The estimated total investment needed for beginning operations is between $423,800 and $3,545,800. Popeyes also lets you open delivery-only least restaurants, for which the investment is as low as $109,500 – $749,300 but we will focus on the traditional franchise.

Royalty Fee: 5% Weekly Gross Sales

Advertising Contribution: 4% Weekly Gross Sales

These fees are standard for most franchises in the food and beverage industry.

Popeyes Louisiana Kitchen is continuously looking for passionate operators that are committed to providing an exceptional guest experience.

The requirements for a Popeyes franchise include:
A net worth of at least $1,000,000
Liquid capital of at leas $500,000
Previous restaurant experience
The approval process includes:
Application submission
Discovery call
Application review
Leadership Interview

2019 Popeyes Median Franchise Sales: $1,321,385

The highest-earning franchise made around $3.6 million in revenue whereas the lowest-earning franchise made $518,830. These numbers indicate that potential earnings can vary significantly and it depends on factors such as locations and how well the business is run.

1- Based on a midpoint investment of $1,984,800 with estimated profits of $132,138 at a 10% profit margin it would take about 15 years to recoup your investment.

2- Based on a midpoint investment of $1,984,800 with estimated profits of $198,207 at a 15% profit margin it would take about 10 years to recoup your investment.

3- Based on a midpoint investment of $1,984,800 with estimated profits of $264,277 at a 20% profit margin it would take about 7 years to recoup your investment.

After five years in the business, when you go to sell your franchise based on the median multiple of .34 and net sales of 2019 of $1,321,385 it would sell for about $449,270. This is only 22% of the midpoint initial investment.

The median multiple franchises selling more than $5 million is .86. If you had 10 Popeyes franchises (about $13,213,850 in sales), assuming that every location has the same initial investment, selling would earn you around 57% of your initial investment.

The key to making your money back with a Popeyes franchise is opening multiple locations. Also, you can profit from the development of your franchise real estate and then sell the real estate and building.

Popeyes Louisiana Kitchen is a profitable business for the franchisor with income that is very close to a billion dollars. Popeyes saw some growth between 2018 and 2019, but that growth did not continue throughout 2020 most likely due to the COVID-19 pandemic. The decline in net income for 2020 was 24% which is a considerable number and you should keep in mind that the franchisor may be affected by future crises.

The number of franchises has been increasing year after year at a rate of 100 units and it did not slow down in 2020! This could be a great indicator that franchisees are doing well even amid the pandemic, which gives reassurance that COVID will not come back and destroy your investment.

Visit the franchise profile on Vetted Biz: https://www.vettedbiz.com/popeyes-franchise-cost-detailed-2022/

Want to speak with a franchise specialist about Popeyes or another franchise? Click here: https://share.hsforms.com/1ZtNM19w4R8WIXyNa_97N7w4e0xw

Source