2026 FDD Issued Mar 20, 2026 Minnesota Commerce (CARDS)
Popeyes Franchise Cost (2026)
A Popeyes franchise costs an estimated $1,222,045 – $3,923,245 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $50,000 initial franchise fee (Item 5) and covers this format: Free Standing. Item 6 lists royalty: 5% of Gross Sales, subject to the conditions below. This record has unresolved source-review issues and was published provisionally before independent verification was complete.
Read the source-review hold before using these figures.
- Total investment
- $1.22M – $3.92MItem 7 source and qualifications
- Franchise fee
- $50KItem 5 source and terms
- Royalty
- 5% of Gross SalesItem 6 conditions and fee bases apply
- Brand fund
- 5% of Gross SalesItem 6 conditions and fee bases apply
What stands out about Popeyes
Real estate is a variable row outside both Popeyes investment totals in Item 7. The building and site-work lines therefore do not make the estimate a complete property budget. A build-to-suit landlord can reduce the construction portion, while using construction-management vendors outside the Qualified Partners list triggers review costs already included in the high soft-cost estimate. Those included costs must not be added a second time.
The advertising test links possible contribution increases to defined restaurant-level EBITDA tests and a longer remodeling timeline. Item 6 also describes reversion if a test fails, rather than an unconditional increase for every restaurant. College-campus and airport addenda have separate advertising waivers. The digital-ordering charge has its own sales definition and calendar-year cap, so an overall sales average cannot determine the full ongoing fee bill.
The $1,893,675 free-standing sales average excludes restaurants without full-period operation, including temporary closures. It is also separate from the FDD's expense and EBITDA tables, which use a different reporting sample and combine free-standing and in-line formats. Item 19 does not turn the selected sales average into owner income. The franchisee reports behind these tables were not audited, and the omitted restaurants matter when interpreting the sample.
What are the initial franchise fees and financial requirements for Popeyes?
Item 5 lists an initial franchise fee of $50,000 for Popeyes. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 (PDF pages 25-28) states a standard, nonrefundable $50,000 initial fee. The veteran program reduces it to $27,500 for the first qualifying new restaurant, with 2% royalty for six months after opening. The veteran must be the franchisee or own at least 51%, provide the required discharge evidence, sign the addendum and open within 18 months of site approval; a transfer before the first anniversary can require repayment of the waived fee and end the royalty discount. Qualifying U.S. college-campus or airport-terminal restaurants pay $12,500 under separate addenda, with a minimum ten-year term and no advertising contribution for that term. College royalty is 3% for a 2026 opening, 4% for a 2027 opening or 5% for a 2028 opening; airport royalty is 4%. Incentives require good standing and compliance, cannot be combined for one restaurant and may be changed or ended. A franchisee must also enter a Target Reservation Agreement (TRA), Multiple Target Reservation Agreement (MTRA), or Development Agreement. A TRA has no initial-fee deposit. An MTRA normally requires a nonrefundable $25,000 deposit per committed restaurant, credited toward initial fees; PDF page 25 describes credit at agreement signing, while page 27 describes credit upon opening, so the applicable credit timing needs confirmation. A Development Agreement ordinarily prepays initial fees for committed restaurants in installments, credited toward then-current initial fees rather than added again. MTRA/Development Agreement preparation and onboarding charges may be $0-$2,500 per committed restaurant. Alternative venues and approved transfers with added term have different fee provisions. Item 5 also identifies background checks, Sitewise, impact studies and conditional construction-review charges; the latter are included in the high soft-cost estimate in Item 7, not added again to that high estimate.
Source: Popeyes 2026 FDD, Item 5, PDF p. 25.
This record lists no minimum net worth or liquid-capital requirement for Popeyes, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a Popeyes franchise? (Item 7)
Source: Popeyes 2026 FDD, Item 7, PDF p. 40.
Item 7 of Popeyes’s 2026 Franchise Disclosure Document estimates the total cost to open one free standing at $1,222,045 – $3,923,245. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Soft Costs | $10,000 | $420,000 |
| Site Work | $40,000 | $800,000 |
| Building | $700,000 | $1,600,000 |
| FF&E, Signage and Technology | $340,000 | $865,000 |
| Initial Training | $17,200 | $24,200 |
| Opening Supplies | $13,000 | $26,000 |
| Insurance | $23,000 | $47,000 |
| Utility Deposits | $3,000 | $50,000 |
| Business Licenses | $1,300 | $6,500 |
| Sitewise | $4,545 | $4,545 |
| Additional Funds – 3 months | $20,000 | $30,000 |
| Total | $1,222,045 | $3,923,245 |
Other formats
| Format | Total investment |
|---|---|
| In-Line | $504,545 – $1,968,245 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
The Free Standing and In-Line totals on PDF page 40 exclude real estate. The table lists Real Estate as Variable, not zero; no amount is supplied, so it is described here rather than given an invented numeric row. Purchase or lease costs need a separate site-specific budget. Notes on PDF pages 41-43 describe a single-restaurant estimate, not an entire development commitment. Build-to-suit projects can substantially reduce free-standing construction costs; food courts, in-line and co-branded buildings are outside the free-standing format. The high soft-cost estimate includes $20,000 for expense reimbursement under the Development Agreement or MTRA and $20,000-$80,000 for franchisor review when construction-management vendors are not Qualified Partners. These are included in that high estimate, not extra amounts to add to it. Initial training includes travel, lodging, meals, uniforms, salaries and benefits for designated employees. Opening supplies cover the first one to two weeks. Insurance covers pre-opening payments and may omit premiums payable after opening. Sitewise is required for the stated development agreements or a new franchisee's first year. Additional funds cover an estimated three months, with no assurance that they will be sufficient. Location-specific costs can exceed the estimates.
What ongoing royalties and fees does Popeyes charge? (Item 6)
Source: Popeyes 2026 FDD, Item 6, PDF p. 29.
Item 6 of Popeyes’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty | 5% of Gross Sales | Every period | Standard weekly royalty on Gross Sales, meaning restaurant revenue less sales taxes. Item 5 veteran, college and airport incentives differ. Item 6 Note 3 permits negotiated 2%-8% rates for specified alternative venues; developer agreements refer to the greater of the then-current FDD rate and 5%, subject to incentives. Historic rates paid are not the standard new-restaurant rate. (Item 6, PDF p. 29) |
| Advertising Contribution | 5% of Gross Sales | Every period | Item 6 lists 4.6%-5% of Gross Sales. All new franchisees enter the Ad Fund Test Program at 5% initially, except programs with different contributions. Successful defined restaurant-level EBITDA tests may require 5.25% as early as May 1, 2026 and 5.5% as early as May 1, 2027; these are conditional tests, not confirmed current increases. Failed tests revert to the most recent successful rate; failure at 5% normally reverts to 4.6%, but a simple-majority participant vote can retain 5%. Enrollment requires the Advertising Fund and Remodel Amendment and allows ten years rather than six for remodeling, subject to its conditions. Qualifying college and airport addenda waive this contribution for the agreement term. See PDF pages 36-37. (Item 6, PDF p. 29) |
| Advertising Co-Op Contributions | 0.5% – 1.75% of Gross Sales | When it applies | Current cooperative-specific range 0.5%-1.75% of Gross Sales, paid weekly in addition to the advertising contribution. Generally capped at an additional 2% unless unanimous member approval or bylaws permit more. Note 5 limits increases to once per twelve months by a two-thirds member vote; waiver and alternative-venue exceptions apply. This charge is not universally applicable. (Item 6, PDF p. 29) |
| Consumer Ordering Technology Fee | Varies | Every period | $200 per restaurant monthly, billed in arrears, plus 1% of Digital Sales billed weekly, with an annual maximum of $6,500 per restaurant/calendar year. Digital Sales include app, website, kiosk, delivery and loyalty transactions, digital in-restaurant offers, registered online guests and other specified channels, not just delivery orders. (Item 6, PDF p. 29) |
| POP I.T. Fee | Varies | When it applies | Up to $1,980 annually for qualifying Easy to Run Kitchens without the required POS; actual charge can be lower with POS platform. (Item 6, PDF p. 30) |
| Rent Where Property Leased from Franchisor | Varies | When it applies | Base/percentage rent under Note 6 plus associated taxes, insurance and occupancy costs. (Item 6, PDF p. 30) |
| Audit | Varies | When it applies | Audit costs for Gross Sales understated by more than 2%. (Item 6, PDF p. 30) |
| Costs and Attorneys' Fees | Varies | When it applies | Applicable expenses if agreement terminated for default. (Item 6, PDF p. 30) |
| Guest Recovery Fee | Varies | When it applies | Applicable complaint-handling costs, not exceeding $150 monthly. Note 7 estimates an average $1,200 per restaurant annually depending on actual complaint volume; that estimate is not a fixed charge for every restaurant. (Item 6, PDF p. 30) |
| Indemnity | Varies | When it applies | Covered operation/agreement claims and enforcement costs under stated conditions. (Item 6, PDF p. 30) |
| Insurance | Varies | When it applies | Franchisor's costs/expenses plus 15% service charge if missing coverage obtained on franchisee's behalf. (Item 6, PDF p. 31) |
| Interest on Overdue Payments | Varies | When it applies | Lesser of 1.5% monthly or legal maximum when more than seven days overdue, running from original due date. (Item 6, PDF p. 31) |
| Interest on Understated Sales | Varies | When it applies | Lesser of 1.5% monthly or legal maximum, running from original due date. (Item 6, PDF p. 31) |
| Lease Late Charges/Interest | Varies | When it applies | Lesser of 18% or legal maximum for late lease payments. (Item 6, PDF p. 31) |
| Indirect Tax | Varies | When it applies | Applicable governmental charges on payments. (Item 6, PDF p. 31) |
| Returned Payment Fee | $75 | When it applies | Per returned/unhonored payment, or legal maximum. (Item 6, PDF p. 31) |
| Product Testing, Inspections and Approval | Varies | When it applies | Actual evaluation costs, capped at $5,000 for proposed supplier/item. (Item 6, PDF p. 31) |
| Third-Party Food Safety and Brand Standards Inspections | Varies | When it applies | Re-inspection/additional inspection costs after specified failures or non-passing scores. (Item 6, PDF p. 32) |
| Renewal | Varies | When it applies | Then-current standard initial franchise fee prorated for renewal term, subject to conditions. (Item 6, PDF p. 32) |
| Extension Fee | Varies | When it applies | Then-current initial fee prorated for extended term. (Item 6, PDF p. 32) |
| Supplemental Term Option | Varies | When it applies | 50% of then-current standard initial franchise fee covering both purchase of the supplemental option and exercise of one additional ten-year renewal term, subject to contractual requirements. (Item 6, PDF p. 32) |
| Securities Offering Review Fee | $5,000 – $20,000 | When it applies | Applicable out-of-pocket review costs. (Item 6, PDF p. 32) |
| Transfer Fee | $7,500 | When it applies | $1,000 per-unit deposit due with the application, nonrefundable if the approved transfer does not occur; credited toward the $7,500 fee when it does. No fee for a transfer to a wholly owned entity formed for convenience of ownership. See Note 8 on PDF page 39. (Item 6, PDF p. 32) |
| Impact Study | $3,500 | When it applies | Per applicable proposed-site impact study. (Item 6, PDF p. 33) |
| Background Check Fee | $210 – $15,000 | When it applies | Typically $210 US; $1,000-$15,000 international. (Item 6, PDF p. 33) |
| Training Platform Maintenance Fee | $60 per month | Every period | Per restaurant; equivalent stated annual fee $720. (Item 6, PDF p. 33) |
| Miscellaneous Reimbursements, Purchases and Services | Varies | When it applies | Applicable training/material/special-service charges not exceeding $10,000. (Item 6, PDF p. 33) |
| Gift Card Services | 1.8% of gift-card redeemed sales | Every period | Estimated transaction fee; required vendor participation. (Item 6, PDF p. 33) |
| Cure Fee | Varies | When it applies | TRA current initial fee; MTRA balance of initial fee multiplied by undeveloped restaurants after missed schedule. (Item 6, PDF p. 33) |
| Site-Approval Extension Fee | $5,000 | When it applies | Applicable MTRA site-approval extension. (Item 6, PDF p. 34) |
| Shortfall Fee | Varies | When it applies | Up to $10,000 monthly per restaurant overdue under Development Agreement; ends at opening and is not credited to initial fee. (Item 6, PDF p. 34) |
| PLK Foundation | $1,000 per year | Every period | Per restaurant through in-restaurant fundraising or donation. (Item 6, PDF p. 34) |
| Brand Damage Fee | Varies | When it applies | Next required installment of initial fees on early Development Agreement termination; paid fees may also be retained. (Item 6, PDF p. 34) |
| Rescheduling Fee | Varies | When it applies | Actual expenses, capped at $5,000, for first MTRA restaurant rescheduled less than thirty days before opening. (Item 6, PDF p. 34) |
| Repair and Maintenance Fee | Varies | When it applies | Actual repair/maintenance costs plus 15% service charge if required work under franchisor lease is not performed. (Item 6, PDF p. 34) |
| Food Safety Modernization Fee | Varies | When it applies | Up to $100 per restaurant annually for the monitoring/traceability IT license that the FDD says the franchisor intends to require distributors to implement. Payable to the franchisor, provider or distributor. The FDD does not confirm implementation or a charge currently paid by every owner. This reports the proposed fee, not independent legal guidance about statutory deadlines. (Item 6, PDF p. 35) |
| Sitewise | $4,545 per year | When it applies | Required for stated development-agreement/TRA/MTRA participation or new franchisee's first year; annual license renewal in Q4. (Item 6, PDF p. 35) |
| Static Menu Board Kit | $200 – $300 per month | When it applies | Only if no outdoor digital menu board installed. (Item 6, PDF p. 35) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Popeyes startup investment and modeled fees over 10 years
A source check placed this record on review hold. Automatic fee estimates are withheld until the outstanding issues are resolved. Digital technology includes a Digital Sales percentage with an annual cap, gift-card charges use redeemed sales, and advertising tests can change rates. POP I.T. and other charges have format-specific applicability. The broad sales average does not determine all recurring fees. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Popeyes franchised outlet history
Source: Popeyes 2026 FDD, Item 20, PDF p. 112.
Item 20 Table 3 reports 3,134 franchised outlets at the end of 2025. The company-owned table reports a further 95 outlets.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 2,905 | 165 | 35 | 3,035 | — |
| 2024 | 3,035 | 136 | 92 | 3,079 | — |
| 2025 | 3,079 | 104 | 49 | 3,134 | — |
Calculated outlet totals, net growth and exit rates are withheld because this record has not cleared the current Item 20 source checks. The table retains the outlet counts printed in Item 20. Read the unresolved source issues.
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables.
229 units changed owners in 2025.
Franchised movements are the printed national totals from Table 3 on PDF page 112. Company-owned year-end totals are from Table 4 on PDF page 113; transfers are Table 2 totals on PDF page 107 and mean a change of at least 50% of restaurant ownership, excluding smaller ownership changes. Transfers are not outlet closures. The 58 restaurants reacquired by the franchisor in 2024 move out of the franchised count, not necessarily out of operation. Table 1 on PDF page 104 agrees with these year-end totals. These Item 20 system counts differ from the eligible full-year samples used in Item 19.
How much do Popeyes franchise owners make? (Item 19)
Source: Popeyes 2026 FDD, Item 19, PDF p. 90.
Item 19 of the 2026 FDD reports arithmetic Average Sales - Franchised Free-Standing Restaurants of $1,893,675 (January 1, 2025 to December 31, 2025, 2,248 U.S. franchised free-standing restaurants continuously operated throughout the twelve-month period ended December 31, 2025; excludes U.S. territories and restaurants without full-period operation). Popeyes’s Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees come out of sales before an owner is paid, so these figures cannot show what an owner earns.
Read the source-review hold before using this figure.
See every Popeyes Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How to interpret Popeyes’s Item 19 figures and sample limits.
How long is the Popeyes franchise agreement term?
Source: Popeyes 2026 FDD, Item 17, PDF p. 80.
The standard Popeyes franchise agreement runs 20 years, with renewal terms of 10 years.
Item 17 states twenty years from commencement of restaurant operations, one conditional ten-year renewal and an option to purchase up to one additional ten-year supplemental renewal. Renewal requires notice, payment and compliance, an approved reimaging plan, refurbishment unless waived, a release, the renewal fee, financial-ratio requirements and a then-current agreement that may change royalty or advertising terms. Alternative locations may receive an initial term of one to twenty years and a renewal of one to five years, with prorated fees; those are not the standard term. Supplemental-option pricing is listed separately in Item 6.
How long does it take to open a Popeyes franchise? (Item 11)
Source: Popeyes 2026 FDD, Item 11, PDF p. 57.
Item 11 of the 2026 FDD states the time from signing the franchise agreement to opening: 30 days.
From site approval to opening, Item 11 gives a typical 12 to 24 months.
Compare Popeyes with other franchises
Head-to-head FDD cost, fee, and earnings comparisons:
Franchises with a similar investment range
These published records are selected by proximity to Popeyes’s $1,222,045 low-end Item 7 investment, starting with Restaurants & Food. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
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Frequently Asked Questions about Popeyes
This record has unresolved source-review issues and was published provisionally. Read the specific issues before using these answers.
- What is the initial franchise fee for Popeyes?
- Item 5 states $50,000 for a standard restaurant. The qualifying veteran program charges $27,500 for the first new restaurant; qualifying U.S. college-campus and airport-terminal programs charge $12,500 under separate addenda. Eligibility, opening deadlines and contractual conditions apply. Development deposits and prepaid initial fees must be distinguished from additional fees so they are not counted twice.
- How much does it cost to open a Popeyes?
- Item 7 estimates $1,222,045 – $3,923,245 for a free-standing restaurant and $504,545-$1,968,245 for an in-line restaurant. Both ranges exclude real estate. They are single-restaurant estimates; purchase or lease costs and the applicable development commitment need separate review.
- What is the ongoing royalty fee for Popeyes?
- The standard royalty is 5% of Gross Sales of Gross Sales, paid weekly. Incentive and alternative-venue agreements can differ. New franchisees normally enter the advertising test at 5% of Gross Sales, with conditional increases or reversion under its amendment; qualifying college and airport addenda waive that contribution. Applicable cooperative contributions are additional. The digital-sales charge and gift-card redemption fee use different bases, so adding all listed percentages to total sales would be incorrect.
- What sales does Popeyes disclose for free-standing restaurants?
- Table I of the 2026 FDD reports arithmetic average sales of $1,893,675 for 2,248 U.S. franchised free-standing restaurants continuously operated through calendar 2025. U.S. territories and restaurants without full-period operation are excluded. This is a selected historical sales sample, not a projection, profit or owner income. Other restaurant formats have separate tables.
Sources
Popeyes Louisiana Kitchen, Inc. Franchise Disclosure Document, issued March 20, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 25
- Item 6: cited PDF p. 29
- Item 7: cited PDF p. 40
- Item 19: cited PDF p. 90
- Item 20: cited PDF p. 112
- Agreement term (Item 17): cited PDF p. 80
Page references for Popeyes use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- October 29, 2026: Record updated.
- October 28, 2026: Source review hold recorded. Unresolved corrections are listed in this source section.
- October 9, 2026: Provisional publication approved per owner directive: Owner-directed provisional publication before independent source verification was complete.
- October 9, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued March 20, 2026).