How much does it cost to open a El Pollo Loco franchise?

The total initial investment for a El Pollo Loco franchise ranges from $793,750 to $2,685,500. This includes the franchise fee of $40,000, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a El Pollo Loco franchise?

El Pollo Loco franchisees pay a 5.0% royalty fee and a 5.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a El Pollo Loco franchise?

Based on Item 19 financial performance data, the median El Pollo Loco franchise generates $2,168,985 in annual revenue. Estimated owner profit is approximately $216,898.

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QSR 498 Units

El Pollo Loco Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$793,750 – $2,685,500

Franchise Fee

$40,000

Royalty Rate

5.0%

Initial Investment Range

Low: $793,750 High: $2,685,500

The total initial investment to open a El Pollo Loco franchise ranges from $793,750 to $2,685,500, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $40,000.

Midpoint estimate: $1,739,625

Franchise Fee

$40,000

One-time initial fee

The El Pollo Loco franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the El Pollo Loco brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

5.0%

of gross revenue

Ad/Marketing Fund

5.0%

of gross revenue

Total Ongoing Fee Burden: 10.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalty	5.0	PCT	Due on the 10th day after the end of each sales month. May be lower or higher than 5% in certain circumstances (non-traditional locations, new markets, financial incentive programs, Turnkey Restaurants, or based on franchisee experience).
Advertising Fee	5.0	PCT	5% of Net Sales outside LA DMA; 4% of Net Sales within LA DMA. Due on the 10th day after the end of each sales month. LA DMA fee may increase up to 1% above original rate during Initial Term with 90 days notice. Portion may be allocated to Local Advertising Fund (LAF) at franchisor's discretion.
Market Study and/or Impact Analysis	N/A	VARIABLE	Franchisor may require a market study conducted by third party for site and surrounding geographic area. As incurred.
Testing	N/A	VARIABLE	Only applies to products not on approved list. Due within 7 days of receipt of bill.
Audit	N/A	VARIABLE	Cost not to exceed $30,000 per audit assuming adequate books and records maintained. Payable only if franchisee fails to furnish required information or if understatement of Net Sales greater than 2%. Due within 7 days of receipt of bill.
Insurance	N/A	VARIABLE	If franchisee fails to maintain required insurance coverage, franchisor may obtain coverage at franchisee's expense. Due within 7 days of receipt of bill.
Training Fees	500.0	FIXED	$500 per week for each additional or replacement Manager at Certified Training Restaurant (applies to 5th Manager and beyond for first 3 Restaurants, all Managers for 4th and beyond). On-going training at franchisee Restaurant: GM/AM Training Materials $80, Shift Leader Materials $60. Due upon receipt of invoice.
Reimbursement for taxes, products, services, and other payments	N/A	VARIABLE	Franchisee must reimburse franchisor for purchases or payments made on behalf. Due within 7 days of receipt of bill.
Correction of Deficiency or Unsatisfactory Condition	N/A	VARIABLE	If franchisee fails to correct deficiency, franchisor may do so at franchisee's expense. Due within 7 days of receipt of bill.
Inspection and Coaching Assessments	N/A	VARIABLE	Available due to failure to pass inspection. As incurred.
Late Charge	15.0	PCT	Lesser of 15% per annum or highest amount allowed by law for delinquent payments. Payable only if sums not paid when due. On demand.
Fees to evaluate and approve alternate suppliers	N/A	VARIABLE	Reasonable costs and expenses to evaluate and maintain alternative brands or suppliers franchisee proposes. Due within 7 days of receipt of bill.
Obsolete Inventory Fund	0.18	FIXED	Additional $0.18 per case on vendor's invoice price of whole birds and saddles. Used to dispose of obsolete inventory or expedite delivery when sales exceed forecasts. As incurred.
Costs and Attorneys' Fees	N/A	VARIABLE	Payable if franchisee fails to comply with Franchise Agreement and in certain instances for transfer of ownership interest reviews. As incurred.
Rent	N/A	VARIABLE	Applies if franchisee leases Restaurant premises from franchisor. Minimum monthly rent ranges from $7,000 to $25,000 or more. Percentage Rent of 8%-12% or more of Gross Sales exceeding Minimum Monthly Rent. Security deposit equal to minimum monthly rent required.
New Franchisee Transfer Administration Fee	40.0	PCT	For transfers to new franchisees. Plus reimbursement of reasonable attorneys' fees. Due before transfer or within 7 days of receipt of bill.
Existing Franchisee Transfer Administration Fee	25.0	PCT	For transfers to existing franchisees. Plus reimbursement of reasonable attorneys' fees. Due before transfer or within 7 days of receipt of bill.
Developer Transfer Administration Fee	10000.0	FIXED	For transfers to new or existing EPL developers. Plus reimbursement of reasonable attorneys' fees. Due before transfer or within 7 days of receipt of bill.
Entity Administration Fee	500.0	FIXED	For change of entity form or entity name with no change in principals. Plus reimbursement of reasonable attorneys' fees. Due with transfer request.
Trust Transfer Administration Fee	500.0	FIXED	For transfer of franchise ownership to revocable family trust. Plus reimbursement of reasonable attorneys' fees. Due with transfer request.
New Principal Administration Fee	2500.0	FIXED	When franchisee or developer desires to add new principals. Plus reimbursement of reasonable attorneys' fees. Due with request to add new principal.
Computer systems maintenance and support	1050.25	FIXED	Platinum service level includes software support for approved hardware. Additional annual fee up to $2,700 for Oracle Micros POS Software Support. Due on the 10th day after end of each sales month. May increase depending on vendor price increases.
Indemnification	N/A	VARIABLE	Franchisee must defend and reimburse franchisor if named in lawsuit arising from Restaurant operations, supply chain, occupancy or any negligence. As incurred or notified.
Intranet Fee	N/A	VARIABLE	If Intranet is established, up to $2,000 per year per Restaurant (maximum increases by 3% per annum). Due 30 days after notification.
Franchisee Page Fee	N/A	VARIABLE	If Franchisee Page is established, up to $1,000 per year per Restaurant (maximum increases by 3% per annum). Due 30 days after notification.
Remote Ordering	1.3	PCT	Through Olo (Mobo Systems). May increase to reflect increases in third-party vendor's costs. As incurred.
Gift Cards	N/A	VARIABLE	Discount fees vary depending on third-party vendor. Charged to Restaurant that redeemed gift cards. As incurred.
Customer Feedback Program	N/A	VARIABLE	Pro-rata share of costs for customer satisfaction/feedback programs (Market Force, Service Management Group, Good Answer, Accuracy Guarantee, Social Media Monitoring, etc.). Ongoing.
Loyalty Program (Loco Rewards)	1.35	PCT	1.35% of Gross Sales for pickup orders. For delivery: 1.35% of Gross Sales plus $0.50 per order. Currently paid to Olo. As incurred.
Third-Party Delivery Program	N/A	VARIABLE	Varies by provider: DoorDash 20%, DoorDash DashPass 22%, Postmates 19%, UberEATS 21%, Grubhub 15%, UberOne 24%, ezCater 17.75% - all plus Olo 1.35% of Gross Sales. May increase with vendor cost increases. Currently paid to Olo. As incurred.
Point-Of-Purchase Material Fees (POP Fees)	N/A	VARIABLE	Varies depending on third-party vendor. Includes banners, clings, menu panels, merchandising materials. Due on 10th day after Sales Month Closing.
Indoor Digital Menu Board – Dining Room	19.0	FIXED	$19 per panel (standard configuration has 4 panels = $76/month). May vary depending on third-party vendor fees. As incurred.
Kiosk	1450.0	FIXED	Optional. Recurring fees currently $1,450 per unit per year but may vary depending on third-party vendor. Hardware cost $4,500 per kiosk (optional cash recycler $12,000). Annually.
Learning Management System	19.0	FIXED	Subscription fee for Pollo Zone learning management system. Due on 10th day after end of each sales month.
Security Services	600.0	FIXED	Security tools and services including endpoint protection and 24/7 SOC monitoring. Currently $600 per year but may vary depending on third-party vendor. As incurred.
Successor Fees	50.0	PCT	50% of then-current standard Initial Franchise Fee, pro-rated to remaining sublease term. Plus reimbursement of reasonable attorneys' fees. Due at signing of Successor Franchise Agreement.
Remodel Administrative Fee	5000.0	FIXED	Due and payable 1 month prior to Remodel deadline.
Refresh Administrative Fee	2500.0	FIXED	Due and payable 1 month prior to Refresh deadline.
Early Termination Fee	N/A	VARIABLE	Average monthly Royalty and Advertising Fees for preceding 48-month period multiplied by lesser of (i) months remaining in term or (ii) 24 months. Franchisee must provide 90 days prior written notice. Due 30 days prior to early closing.
Outdoor Order Confirmation Board (OCB)	19.0	FIXED	$19 per month for outdoor OCB display. May vary depending on third-party vendor fees. Monthly.

What You Get

Financial Performance (Item 19)

Median Revenue

$2,168,985

per year, per location

Mean Revenue

$2,229,953

per year, per location

Profitability Estimate

Estimated Owner Profit

$216,898

per year

Profit Margin

10.0%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 8.0 years

Based on midpoint investment of $1,739,625 and estimated annual owner profit of $216,898.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.1%

Low risk — below industry average

Net Unit Growth

+34 units

From 2022 to 2024

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	291	+19	—	—	302
2023	302	+21	—	—	323
2024	323	+3	-1	—	325

Is a El Pollo Loco Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the El Pollo Loco franchise opportunity:

Overall Score

83/100

Strong opportunity

Est. Payback Period

8.0 yrs

Longer payback

Risk Level

Low

0.1% annual closure rate

El Pollo Loco scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $2,168,985 and a combined fee burden of 10.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.