Since the introduction of the chicken sandwich in 2019, Popeyes has been on the headlines for making big sales. Considering that Popeyes has such an enthusiastic fanbase, opening one will be lucrative.
But how do you open a Popeyes outlet? Is Popeyes a franchise? Keep reading and get factual answers to these questions and much more!
Is Popeyes a Franchise In 2024?
Popeyes uses a franchising business model to expand its operations in the US and Canadian territories in 2024. In this model, Popeyes’ parent company, Restaurant Brands International (RBI), reviews franchise applications and offers successful applicants permission to operate as the brand. Successful franchisees can use Popeyes’ trademark, recipes, interior design, and operational strategies.
If you want to find more information on the cost of opening a franchise, how to own one, what it’s like to have one, and much more, keep reading!
How Much Does It Cost to Open a Popeyes Franchise?
The total investment needed to open a Popeyes franchise ranges anywhere between $383,500 to $3,545,800.
These costs may vary depending on the location, configuration, store size, and terms of financing.
Ideally, one requires $500,000 in liquid capital as well as a net worth of $1,000,000.
The liquid capital required refers to the amount of money at hand, while the net worth refers to one’s total amount of assets.
In addition to these investment requirements, Popeyes also needs franchise owners to pay a franchise fee of $50,000.
The total cost taken to open a Popeyes franchise takes care of expenses such as the building of the premises, business license, FF&E Signage and Technology, Insurance, and initial training.
How Do You Open a Popeyes Franchise?
To successfully open and operate a Popeyes franchise, you should follow the steps below:
1. Ensure you have enough capital
The first step towards owning a Popeyes Lousiana Kitchen franchise is to ensure that you have adequate finances to open up the franchise.
Ideally, you must have a net worth of more than $383,500.
2. Ensure you understand the investment required for setting up a franchise
While planning to open a Popeyes franchise, you might need to consider the actual costs of building and real estate, equipment and signs, licenses and permits, uniforms, and insurance.
3. Evaluate your personal experience and strengths
As part of the evaluation process, you must consider your personal strengths and experience in business and leadership.
Popeyes Louisiana Kitchen takes into account the applicant’s past experiences before approving their application.
According to Popeyes’ franchising website, either you or a member of your team should have previous experience in a restaurant and a track record of Southern Hospitality.
4. Assess the market availability
For successful owning of a Popeyes franchise, it is important to research the market availability and determine whether there are available markets in your location of interest.
5. Submit an application
The application process has the following steps:
- Apply Online- Submit your details through the “Apply Now” link provided on the franchising page.
- Discovery Call- Through the discovery call, you will speak to the Popeyes franchising team and share your professional background and experience.
- Application Review- Popeyes franchising team will review your application and assess your QSR operations expertise, background checks, credit checks, business plan, and legal entity documents.
- Leadership Team Interview- Once the application review process is complete, successful applicants will be invited for in-person meetings with the Popeyes leadership team.
- Final Approval- If you receive the final approval to own and operate a Popeyes franchise, you can start your franchise training and site selection processes. The approval is only given to applicants who meet all the requirements of owning a franchise.
What Is It Like to Operate a Popeyes Franchise?
Once you open up a Popeyes franchise, the length of the initial franchise term is 20 years from the commencement date of the franchise agreement.
You are also expected to pay royalties of 5% of the gross sale, advertising contribution of 4% of the gross sales, as well as 0.5%-1.7% of the gross sales, paid towards advertising co-op.
What Are the Advantages of Opening a Popeyes Franchise?
Among the most prevalent advantages of opening a Popeyes franchise is that the brand has gained a lot of publicity and attention due to its chicken sandwich.
The publicity created has been a marketing tool that has consequently increased Popeyes’ online presence and driven sales.
Popeyes also has a small number of franchise locations, hence minimizing the competition that comes along with overcrowding franchises of the same brand within the same locality.
In addition to this, Popeyes is committed to providing specialized training to new franchisees even though they require individuals with previous experience in restaurant operations.
Moreover, opening up a Popeyes franchise has been proven to be more profitable than other competitive brands of fast-food restaurants.
How Much Does a Popeyes Franchise Owner Make?
According to an analysis of 2019 Popeyes median franchise sales, a franchise owner can make approximately $518,830 and $3.6 million in revenue.
The figures may vary depending on the location of the franchise, as well as the management strategy used at the franchise.
Using the 2019 Popeyes Median franchise sales, one can deduce the following:
- Midpoint investment of $1,984,800 with estimated profits of $132,138 at a profit margin of 10%, it would take approximately 15 years to recover the initial investment.
- Midpoint investment of $1,984,800 with estimated profits of $198,207 at a profit margin of 15%, it would take approximately 10 years to recover the initial investment.
- Midpoint investment of $1,984,800 with estimated profits of $264,277 at a profit margin of 20%, it would take approximately 7 years to recover the initial investment.
In conclusion, Popeyes Lousiana Kitchen uses a franchising business model to expand the operation. The cost of opening up a Popeyes franchise ranges from $383,500 to $3,545,800.