Popeyes Louisiana Kitchen Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Popeyes is a quick-service chain built on Louisiana-style fried chicken, its viral chicken sandwich, and Cajun sides. Franchisees operate drive-thru and dine-in restaurants managing staffing, food prep, and costs under RBI standards.
FranchiseVerdict summary · 2026
A Popeyes Louisiana Kitchen franchise requires a total initial investment of $1.2M – $3.9M, including a $13K – $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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $1.2M – $3.9M
- 95th pct Service Resta…
- Avg gross sales
- $2.0M
- 30th pct Service Resta…
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 3,177
- 95th pct Service Resta…
- SBA charge-off
- 10.4%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.2M – $3.9M including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.0M/year (median $1.9M), with an estimated 7% cash-on-cash return (based on EBITDA $3).
- RISKVerdict A (Strongest tier), verdict score 70/100 (higher is better). SBA loan charge-off rate of 10.4% across 332 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- SCALEEstablished system with 3,177 units across 50 years of franchising. Strong brand recognition and operational playbook.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Popeyes Louisiana Kitchen, Inc.
- Parent company
- Restaurant Brands International Limited Partnership (RBILP)
- Ultimate parent
- Restaurant Brands International Inc. (RBI)
- CEO title
- President, U.S. and Canada
- Jeffrey Klein
- Incorporated in
- MN
- HQ
- 5707 Blue Lagoon Drive, Miami, Florida 33126
- Auditor
- Not specified in Item 21 text (RBI consolidated financials attached as Exhibit L)
- Audited financials
- Franchisor revenue
- $8.4B
- vs $7.0B 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
- CEO
- Jeffrey Klein
- Headquarters
- FL
- Founded
- 1972
- FDD year
- 2025
- States available
- 51
Can you afford it, and what does the money buy?
Entry cost runs 291% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown13 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.2M – $3.9M
- Bottom third — review vs category
- Liquid capital req'd
- $20K – $30K
- Top 40% of category vs category
- Franchise fee
- $13K – $50K
- Bottom third — review vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 5.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 14.2 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 5.0% of gross sales |
| Technology fee | $0 |
| Training fee | $17K |
| Transfer fee | $8K |
| Renewal fee | $0 |
| Inventory (initial) | $13K – $26K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 64% above the quick-service restaurants norm.
Source: FDD 2025 · Item 19
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
$237K
12.0% margin
Unlevered ROIC
9%
EBITDA / total invested capital
Payback
10.9 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $328K as EBITDA $3. Our model estimates $237K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because EBITDA $3 deducts different expense categories than our model.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Popeyes Louisiana Kitchen unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
9%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Popeyes Louisiana Kitchen units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$2.0M
on $9.9M purchase
Total debt
$7.9M
SBA $4.9M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $2.0M
- Per unit, per year
- Median gross sales
- $1.9M
- Avg ebitda $3
- $328K
- Reported as EBITDA $3 in FDD Item 19
- Cash-on-cash
- 7.0%
- Based on EBITDA $3 / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Annual gross sales and EBITDA by restaurant format and sales tier, fiscal year 2024
- Sample size
- 2,186 outlets
- vs category median 20 · large
- Range (low → high)
- $255K→$6.2M
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 782 Quick-Service Restaurants brands
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.0M/year in gross sales. Revenue-to-investment ratio: 0.8x.
Fee burden
Total ongoing fee load of 9.0% (near the Quick-Service Restaurants average).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 6.0% CAGR over 3 years across 3,177 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Popeyes Louisiana Kitchen Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3,177
- Opened
- 136
- Last reporting year
- Closed
- 26
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 8
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.8%
- Company-owned
- 98
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (3-yr)
- +6.0%
- Net unit change over 3 years
- 3-yr CAGR
- +6.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 186
- Closed (3yr)
- 19
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 7
- Transfers (3yr)
- 77
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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)
- 89.6%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 92
- Defaults
- 23
- Typical loan rate
- 6.3%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 2,743
- 3.3 per loan
- Lender concentration
- 14%
- top lender's share
Borrower mix: 58% went to startups / new businesses, 42% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Popeyes Louisiana Kitchen charge-off rate by loan vintage
Top lenders financing Popeyes Louisiana Kitchen franchisees
Showing 3 of 92 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
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.
What could kill this investment?
SBA loans charge off at 10.4% — 35% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Two pending cases against PLK: (1) Khalid Zia Syed related to Toronto restaurant closures (Oct 2024, ONT); (2) Pinnacle Foods CA development agreement dispute (filed Dec 2020, franchisee in bankruptcy). PLK initiated: (3) v. Florida Pop LLC trademark enforcement (filed Oct 2023, settled Mar 2024). Concluded against PLK: (4) Elite Cajun Foods (settled Mar 2019). Multi-jurisdictional no-poach settlements with 13+ state AGs (Feb 2020, no money paid). Several affiliate cases (BK, TH) where PLK is not a party.
Largest disclosed settlement: $59,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Not specified in Item 21 text (RBI consolidated financials attached as Exhibit L)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 70 / 100 verdict
- 01MINORStagnant unit growth (1.4% YoY) suggests market saturation or franchisee underperformance, raising concerns about expansion viability
- 02MINORMultiple 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
- 04MINORHigh investment ceiling ($3.9M) relative to modest net income ($328K) yields 11-12 year payback period at best, concerning for ROI confidence
- 05HIGHBreach of development agreement litigation suggests franchisor enforcement inconsistency and potential territorial/growth restriction conflicts
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 20 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | No |
| Arbitration location | Miami, Florida (litigation venue) |
| Jury trial waiver | No |
| Governing law | FL |
| Litigation count | 4 |
View Item 3 litigation summary
Two pending cases against PLK: (1) Khalid Zia Syed related to Toronto restaurant closures (Oct 2024, ONT); (2) Pinnacle Foods CA development agreement dispute (filed Dec 2020, franchisee in bankruptcy). PLK initiated: (3) v. Florida Pop LLC trademark enforcement (filed Oct 2023, settled Mar 2024). Concluded against PLK: (4) Elite Cajun Foods (settled Mar 2019). Multi-jurisdictional no-poach settlements with 13+ state AGs (Feb 2020, no money paid). Several affiliate cases (BK, TH) where PLK is not a party.
Items 10, 11
Training & Operations
- Classroom training
- 10 hrs
- On-the-job training
- 116 hrs
- Training location
- Certified Training Restaurant and other designated locations
- Ongoing training
- Required
- Site selection
- Franchisee selects subject to franchisor approval; franchisor selects in PL (land/building lease) situations
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
3,246 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 $1.2M – $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 Item 19 in the Popeyes Louisiana Kitchen FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Popeyes Louisiana Kitchen FDD and qualifies whose outlets they describe.
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 verdict score of 70 out of 100 (higher is better), 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.
For franchisors
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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.