The franchisor is Popeyes Louisiana Kitchen, Inc. Restaurant Brands International Limited Partnership is the indirect owner of the company. Our business is quick-service restaurants that provide lunch and dinner on a limited menu. Some of our restaurants can offer breakfast (that option must be agreed with the franchisor). Our menu is specified in the “Louisiana” style included chicken strips, spicy chicken, seafood and fried shrimps, rice, red beans, biscuits, and others. Popeyes restaurants work in the sit-down, walk-in, and drive-thru format (or any combination of these formats).
Some of the franchisee managers must complete the Popeyes Training Program (PTP), to the satisfaction of the franchisor, to fulfill their respective leadership roles in the franchised restaurant. If Popeyes restaurant franchisee’s first, before opening at least five managers, including the Managing Director, must complete PTP.
The final number of employees that need to complete PTP will be determined by the Popeyes Louisiana Kitchen, Inc. Duration of training from 6 to 10 weeks. The first two weeks of training are orientation and team member station training. In the next 4-6 weeks, franchisees will have leadership training, including modules for a restaurant general manager, assistant restaurant general manager, and shift manager. From time to time at its discretion, the franchisor may have additional training for franchisees or their employees. Additional training may be or be not obligatory.
Territory Granted: After signing a Franchise Agreement for a restaurant (that is not an Alternative Venue), the franchisor grants to franchisee a geographic area where the franchisor will not open or sell the license to open Popeyes restaurant. This condition will be valid throughout the duration of the Franchise Agreement.
The Protected Area meets one of two conditions that equal to the lesser:
- a 1-mile radius around the franchised restaurant; or
- the territory surrounding the franchised restaurant, with a population (living and working together) of 50,000 people.
The Protected Area exclusive rights do not apply to
- existing Popeyes restaurants,
- restaurants for which franchise agreements were previously concluded,
- any closed Popeyes restaurants that may reopen within three years from the closing date.
The franchisor has the right to change or reduce the Protected Area, depending on the type of changes in population. Nevertheless, the Protected Area will always include a population of at least 50,000 people, if less than a 1-mile radius.
Obligations and Restrictions: A franchisee must designate a Managing Director to operate the restaurant if a franchisee is more than one individual or business entity (partnership, corporation, LLC). For franchisees that are an individual, franchisor recommends them to be the Managing Director but does not require that.
The Managing Director must be approved by the franchisor. The Managing Director must have at least 5% legal or beneficial ownership of the restaurant or the right to receive 5% or more of the operating profit of the restaurant. The Managing Director must fully control the daily operation of the restaurants in one geographic area owned by the same franchisee.
A Popeyes Certified Manager must directly supervise the franchised restaurant all the time. The franchised restaurant must be open and normally operate at days and hours written in the manual or otherwise in writing. The franchised restaurant must be used only as a Popeyes restaurant. The franchised restaurant must be offered only products and services confirmed in writing by the franchisor. The franchised restaurant must be operated in strict accordance with the franchisor’s standards, specifications, methods in the manual or otherwise in writing.
Franchisees may set their own prices for items in the menu, except for certain products that the franchisor will set a maximum price from time to time.
Term of Agreement and Renewal: The duration of the initial franchise agreement is 20 years. Renewal is available for one term of 10 years. Franchisees also can buy an additional “Supplemental Renewal Term” for 10 years
Financial Assistance: Usually the franchisor doesn't offer any financing (direct or indirect). Franchisees do not guarantee a franchisee’s note, lease, or obligation. The franchisor and its affiliates have the right to sell, assign or provide a discount to a third party, in whole or in part, any amounts that the franchisee may owe to the franchisor or its affiliates.