[central_va]

Popeyes 2015 Annual Report

I am pleased to say that our commitment to excellence has paid off. Since 2008, we have built 1,236 new restaurants globally, including 552 internationally. We have posted seven consecutive years of global same-store sales increases. Average domestic unit volumes have grown from just under $1 million to nearly $1.4 million. We have nearly doubled domestic franchise Restaurant Operating Profits (ROP) from $177,000 in 2008 to $340,000 in 2015. Perhaps most importantly, we have grown our share of the Chicken Quick Service Restaurant (CQSR) market from just 14.8 percent in 2008 to 25.5 percent in 2015.

[mountn man]

What central_va leaves out, is after that $340,000 profit, the franchisee has to pay
5% of gross sales for royalty fees.
4% of gross sales for Local Advertising
.8% of gross sales for Advertising fund.

With gross sales of $1.4 million on average, that's about $140k from $340k.

Also, that doesn't include any business loan interest.
3.5%-4% on $1 Million = another $35k

Also, the franchisee has to agree x amount of stores in a market, with a timetable to add those stores. So profits roll right into another project.

Also what is not discussed is the 3-5 years that it takes to get a store truly running.

Popeyes wants $1,000,000 of liquid assets, to start, just one store, in order to operate the business, until it is self sufficient.