Popeyes Louisiana KitchenFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Popeyes Louisiana Kitchen franchise requires a total initial investment of $505K – $3.9M, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.0M[2]. SBA 7(a) loans show a 10.4% charge-off rate across 332 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $505K – $3.9M
- 82nd pct Service Resta…
- Avg gross sales
- $2.0M
- 52nd pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 3,177
- 97th pct Service Resta…
- SBA default
- 10.4%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1976. Systems this mature have refined operations and brand recognition.
Franchised units fell from 3079 to 2905 over 3 years. Investigate why operators are leaving.
10 legal cases disclosed in the FDD. Read Item 3 before signing.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $505K – $3.9M including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $2.0M/year (median $1.9M), with an estimated 15% cash-on-cash return (based on EBITDA).
- Verdict A (Top Quintile) with a risk score of 34/100. SBA loan charge-off rate of 10.4% across 332 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Popeyes Louisiana Kitchen, Inc.
- Parent company
- Restaurant Brands International Limited Partnership
- CEO title
- Chief Executive Officer of Restaurant Brands International Inc.
- Joshua Kobza
- Incorporated in
- MN
- HQ
- 5707 Blue Lagoon Drive, Miami, Florida 33126
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $7K
- vs $8K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- Franchising Start Date Restaurant Count
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate quick-service restaurant locations serving Popeyes' signature fried chicken, sandwiches, and sides with drive-through and dine-in service. Day-to-day responsibilities include staffing management, inventory control, food preparation oversight, customer service delivery, local marketing compliance, and adherence to RBI operational standards across a typical 1,500-2,500 sq ft footprint.
- CEO
- Joshua Kobza
- Headquarters
- FL
- FDD year
- 2025
- States available
- 51
FDD Item 7 · 2025 filing · 13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Real Estate | — | — | |
| Soft Costs | $8K | $420K | |
| Site Work | $40K | $800K | |
| Building | $100K | $1.6M | |
| FF&E, Signage and Technology | $265K | $865K | |
| Initial Training | $17K | $24K | |
| Opening Supplies | $13K | $26K | |
| Insurance | $23K | $47K | |
| Utility Deposits | $3K | $50K | |
| Business Licenses | $1K | $7K | |
| Sitewise | $5K | $5K | |
| Additional Funds - 3 months | $20K | $30K | |
| Total initial investment | $545K | $3.9M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$257K
13.0% margin
Unlevered ROIC
11%
EBITDA / total invested capital
Payback
8.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $505K – $3.9M
- Below avg, review vs category
- Liquid capital req'd
- $20K – $30K
- Near category avg vs category
- Franchise fee
- $50K – $50K
- Below avg, review vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 6.7 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Technology fee | $7K |
| Transfer fee | $8K |
| Inventory (initial) | $13K – $26K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $2.0M
- Per unit, per year
- Median gross sales
- $1.9M
- Avg ebitda
- $328K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 14.8%
- Based on EBITDA / investment midpoint
- Item 19 type
- ebitda
- Sample size
- 2279 units
- vs category median 28 · large
- Range (low → high)
- $255K→$6.2M
- Cohort dispersion (min → max)
- Quartile band
- $1.2M→$2.6M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 453 Quick-Service Restaurants brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Quick-Service Restaurants averages
How Popeyes Louisiana Kitchen Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3,177
- Opened
- 136
- Last reporting year
- Closed
- 34
- Turnover rate
- 1.1%
- Company-owned
- 98
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (yr3)
- +1.4%
- Net unit change last year
- 3-yr CAGR
- +6.0%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 98
- Terminated (3yr)
- 58
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 125
- Transfer rate
- 3.9%
- Owners selling to other franchisees
- Termination rate
- 1.9%
- Franchisor-initiated terminations
- Ceased ops
- 3.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 49 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Illinois
- Michigan
- New York
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 332
- Loan volume
- $231.7M
- Median loan
- $840K
- 50th percentile
- Charge-off rate
- 10.4%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 92
- Defaults
- 23
Vintage analysis
Popeyes Louisiana Kitchen charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Popeyes Louisiana Kitchen's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 13-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Popeyes presents meaningful caution-level risk due to negligible unit growth, active multi-jurisdictional litigation, undisclosed financial reporting, and questionable return on investment timeline despite an established brand.
Litigation (Item 3)
Popeyes Louisiana Kitchen Inc. is named as defendant in franchisee dispute involving Toronto restaurant closures and share sales. Damages sought up to CAD$6 million.
Largest disclosed settlement: $6
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 34 / 100 rating
- 01MINORStagnant unit growth (1.4% YoY) suggests market saturation or franchisee underperformance, raising concerns about expansion viability
- 02HIGHMultiple active litigation cases including class actions and antitrust allegations (no-poach violations) indicate systemic governance and compliance issues
- 03HIGHParent company RBI litigation involvement suggests corporate-level problems that could cascade to franchisees through policy changes or brand damage
- 04HIGHGoing Concern status is FALSE with no Item 19 financial data disclosed, preventing verification of claimed $328,316 average net income
- 05MINORHigh investment ceiling ($3.9M) relative to modest net income ($328K) yields 11-12 year payback period at best, concerning for ROI confidence
- 06HIGHBreach of development agreement litigation suggests franchisor enforcement inconsistency and potential territorial/growth restriction conflicts
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius / Population |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 10 |
View Item 3 litigation summary
Popeyes Louisiana Kitchen Inc. is named as defendant in franchisee dispute involving Toronto restaurant closures and share sales. Damages sought up to CAD$6 million.
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 116 hrs
- Training location
- On-site and off-site
- Site selection
- franchisor
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
3,247 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Popeyes Louisiana Kitchen · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Popeyes Louisiana Kitchen franchise?
The total investment to open a Popeyes Louisiana Kitchen franchise ranges from $505K – $3.9M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Popeyes Louisiana Kitchen franchise owners earn?
According to Item 19 of the Popeyes Louisiana Kitchen FDD, the average gross sales per unit is $2.0M. The median is $1.9M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Popeyes Louisiana Kitchen's franchise failure rate?
Based on SBA 7(a) loan data, Popeyes Louisiana Kitchen has a charge-off rate of 10.4% across 332 loans, meaning 10.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Popeyes Louisiana Kitchen franchise locations are there?
As of their most recent FDD filing, Popeyes Louisiana Kitchen has 3,177 total units in the United States, including 3,079 franchised units and 98 company-owned units. 136 new units were opened in the latest reporting year.
Is Popeyes Louisiana Kitchen a good franchise to buy?
FranchiseVerdict rates Popeyes Louisiana Kitchen as a A-grade franchise with a risk score of 34 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.