2011 Franchise Kit
WHY FRANCHISE with POPEYES?
Benefits of Being a Popeyes Franchisee
•
A franchise provides you with the opportunity to operate a business
under a well recognized brand name.
•
Under a Development and/or Franchise Agreement you have the
following:
• Use of the name & logo
• Use of operating methods/systems
• Recipes
• POS/ cash register system
• Cash control
• Inventory control
• Training system/manuals
• Operations manual
• Research & Development
• An opportunity to own multiple restaurants
• Fellow franchisees…network of advisors
• On-going field and headquarters support
• Protected territory
• Site selection design, construction & support
•
In exchange you pay development fee, franchise fee, continuing
royalty fee and advertising contributions fee.
2011 FRANCHISING with POPEYES
Operating a successful franchise requires talent, dedication, and a sincere commitment to the
Popeyes® brand name. Our goal as a company is and always has been to partner with the best
people in each market - people with a proven track record in business.
Because franchisees are so important to our success, we are looking to expand our relationship
with qualified individuals who possess the right mix of expertise and enthusiasm. We are looking
for candidates who possess each of the following characteristics:
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•
•
•
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Solid business experience
Proven expertise in owning or operating restaurants (minimum 5 years experience)
Previous franchise experience advantageous
Net worth of $500,000 and $250,000 liquid assets
Commitment to grow with Popeyes
Franchise Fees
•
•
•
•
•
Development Fee
Franchise Fee
Royalty Fee
Ad Fund
Term
$7,500 per restaurant
$30,000 per restaurant
5% of Gross Sales
4% of Gross Sales
20 years
Popeyes restaurants are built in a variety of venues including freestanding locations, in-line
shopping plazas, malls, airports, colleges and more. Existing buildings are also converted into
Popeyes restaurants.
Prototype Project Costs (48 seats)
•
•
•
•
•
•
Equipment, Furniture, and Signs $175,000 to $207,000
Point of Sale
$24,000 to $32,000
Due Diligence
$25,000 to $50,000
Opening Supplies
$10,000 to $20,000
Real Estate & Improvements
Cost varies according to restaurant & lot size
Recommended minimum size of lot is 22,000 to 30,000 s/f
These fees do not include all costs associated with franchising with Popeyes.
Popeyes Louisiana Kitchen is providing these figures to assist you in analyzing your proposed restaurant
construction. Site acquisition, site preparation and off-site utility costs are not included. We cannot estimate
your actual investment for improvements. The costs of construction vary considerably depending upon the
location and conditions affecting the local market of your restaurant. The above ranges represent our best
estimates of construction costs for a 48-seat Popeyes restaurant. These estimates are based upon the experience
on construction of company-owned freestanding restaurants as well as industry standard costs of construction.
We do not warrant the accuracy of the cost estimates. We refer you to Item 7 of our Franchise Disclosure
Document for more detailed information regarding your initial investment.
© 2011 AFC ENTERPRISES, INC.
EXECUTIVE OFFICERS
Cheryl A. Bachelder, Chief Executive Officer
Cheryl was named chief executive and president of AFC Enterprises, Inc. in 2007, after more than 25 years in
executive management positions in the foodservice industry. In her three years at the helm of Popeyes®, she and
her veteran leadership team re-engineered the brand with a new marketing campaign, customer feedback
program, refreshed logo and several product launches. Despite a blistering recession Bachelder has guided the
more than 1,950-unit, global brand to outperform both QSR and chicken QSR categories for the second
consecutive year. Her framework for moving the needle at Popeyes centers around four strategic goals: building a
distinct, relevant brand; running great restaurants; strengthening unit economics and ramping up unit growth.
In 2009, QSR magazine named Popeyes® Louisiana Kitchen one of the top ten franchise deals in the industry. In addition Bachelder was
cited by veteran foodservice journalist Peter Romeo as one who “can hold her own” with the likes of other highly successful industry titans.
H. Melville Hope, III, Chief Financial Officer and Senior Vice President
H. Melville Hope, III has served the role of senior vice president and chief financial officer of Popeyes® since
December 2005. Prior to his promotion to CFO, Mr. Hope served as senior vice president, finance and chief
accounting officer for AFC Enterprises, Inc., the parent company of Popeyes, from 2004 to 2005 and vice
president of finance from 2003 to 2004. From 2002 to 2003, Mr. Hope was chief financial officer for First
Cambridge HCI Acquisitions, LLC, a real estate investments firm located in Birmingham, Alabama. In this role Mr.
Hope's principal duties were to negotiate acquisitions, financing and sales of real estate.
From 1984 to 2001, Mr. Hope was an accounting, auditing and business advisory professional for PricewaterhouseCoopers, LLP in Atlanta,
Georgia, in Savannah, Georgia, and in Houston, Texas where he was admitted to the partnership in 1998. Mr. Hope built and led service
teams executing IPOs, M&A transactions, financial statement audits and SEC reporting projects. Mr. Hope is a Certified Public Accountant
and holds a bachelor's degree in Business Administration-Accounting from Belhaven College, where he graduated with honors.
Ralph Bower, Chief Operations Officer
Ralph W. Bower became chief operating officer of Popeyes® in February 2008. From 2006 to 2008, Mr. Bower was the
KFC operations leader responsible for more than 1300 KFC franchised restaurants in the western United States. Prior to
this position, he led KFC company operations in Pennsylvania, New Jersey and Delaware. From 2002 to 2003 Mr. Bower
directed the guest satisfaction function for KFC. Before joining KFC, Mr. Bower was employed by Western Ohio Pizza, a
franchisee of Domino's Pizza, overseeing operations in Dayton, OH, and Indianapolis, IN. Mr. Bower began his restaurant
career with the second largest Domino's franchise organization, Team Washington, where he was a regional director. In
each of these roles he demonstrated exceptional leadership and performance results in the restaurant industry.
Prior to his restaurant experience, Mr. Bower served as an officer in the United States Navy. Mr. Bower holds a Bachelor of Science degree
from the United States Naval Academy.
Richard H. Lynch, Chief Marketing Officer
Richard H. Lynch became chief marketing officer of Popeyes® in 2008, following his consultancy as interim CMO. From
2003 to 2008 Mr. Lynch served as principal of GO, LLC, a marketing consulting firm specializing in restaurant and food
retail, where he developed brand strategy and innovation plans for concepts including Burger King, Ruby Tuesday and
Buffalo Wild Wings. His experience extended beyond restaurant and food retail to include global branding strategy for
such companies as IMG, the world's largest sports marketing firm. From 1982 to 2003, Mr. Lynch served as executive
vice president at Campbell Mithun Advertising where he led the development of brand architecture and positioning for
Domino's Pizza, Martha Stewart Everyday and Betty Crocker.
Prior to his restaurant experience, Mr. Lynch held key creative roles with Tracy-Locke Advertising in Dallas, Texas and Ketchum
Communications in San Francisco, California. Mr. Lynch holds a Bachelor of Science degree in Business Administration from the University
of Wisconsin at Milwaukee.
FREQUENTLY ASKED QUESTIONS (FAQs)
Minimum Qualifications
Q: What are the basic financial requirements for franchising with Popeyes®?
A: Among other things, Popeyes requires that you have a minimum net worth of $500,000 of which
$250,000 must be liquid (for each restaurant you intend to develop or purchase).
Q: How do I determine my “Net Worth”?
A: In its simplest terms, it is your Total Assets (what you own) minus your Total Liabilities (what you
owe).
Q: What are “Liquid Assets”?
A: The most common forms are cash, stocks, bonds and inventory.
Q: Do you require restaurant experience? If so, what level?
A: Yes. Popeyes requires a minimum of 5 year Restaurant Management experience at the General
Manager level or higher (District Manager, Regional Manager, Owner, etc).
Q: If I personally cannot meet your requirements, can I partner with other people?
A: Absolutely. We have many franchisees who have partnered with other interested parties to
become franchisees.
Real Estate/Development Qualifications
Q: In what types of venues will Popeyes build?
A: Our two most common venues are 'free-standing' (alone on its own real estate) and 'in-line', as
part of a shopping center or row of businesses. We also develop in other venues such as airports,
shopping malls, college/university campuses and many others.
Q: What does Popeyes look for in a restaurant location or site?
A: Our ideal site would be a corner lot, at a traffic light with convenient ingress & egress on the
'going home' side of the street. The lot size would be a minimum of 25,000 square feet (130' x
190' ft. or .4 acre) and have an average daily traffic count of at least 20,000 on the primary artery,
with a minimum of 25,000 in population within 2 miles, with median income between $30,000 –
$85,000. Keep in mind this is not an absolute criteria; specific sites are evaluated on their
individual merits.
Q: Who determines whether or not I can build a restaurant on a particular piece of real estate?
A: Once you have identified and submitted a potential site to Popeyes, we conduct an analysis and, when
necessary, we visit your location to determine whether or not the location fits the established criteria
for development. We must accept each site in writing before you can build a Popeyes restaurant.
© 2011 AFC ENTERPRISES, INC.
Q: Can I develop in convenience stores or gasoline stations?
A: Popeyes no longer signs new Development Agreements with franchisees in these types of
venues.
Q: Can I buy an existing building and convert it to a Popeyes restaurant?
A: Yes, if the image elements of Popeyes can be incorporated into the building being converted.
As with any site, the location must first be accepted by Popeyes.
Finance
Q: Does Popeyes provide financing?
A: We do not provide financing for franchised restaurants. You'll need to secure financing for your
restaurants and provide a letter of commitment to finance as part of your final application package.
However, we do have contacts with various financing companies who are familiar with
Popeyes. Your Franchising Manager can discuss this with you once you are qualified and are
moving forward with the application process.
Q: What is the average profit from a Popeyes restaurant?
A: Like any company that franchises, Popeyes is governed by the Federal Trade Commission and
cannot tell you how much you can make. However, we do disclosed sales volumes in the Item 19
of our Franchise Disclosure Document (FDD). Once you have begun the franchise application
process and acknowledged your receipt of our FDD, we will encourage you to review the FDD
information and to talk with other franchisees about such matters.
Q: What other sales & earnings numbers can you share with a potential franchisee?
A: Except for the information set forth in Item 19 of the FDD, Popeyes does not furnish or authorize
our sales people to furnish any oral or written information concerning the actual, average,
projected or forecasted sales, costs, income or profits (the "earning capability") of a restaurant.
General Information
Q: Why do you have the area I'm interested in listed as sold out, when I don't see a Popeyes
restaurant near me?
A: Popeyes sells franchises through what we call a 'Development Agreement', which assigns the
franchisee a particular area to develop within a specific timeline. Your area may have a
Development Agreement in place with restaurants yet to be built.
FREQUENTLY ASKED QUESTIONS (FAQs)
Q: I am interested in owning the development rights for an entire area so that I am the only one who
can build Popeyes in that area. Can I do this?
A: Our goal is to fully penetrate a market within 5 years. We typically look for multiple franchisees
with smaller development schedules to help us reach this goal.
Q: Does Popeyes own the real estate and the building or must the franchisee buy them?
A: The franchisee is responsible for buying the real estate and for the cost of the building. We will
offer assistance in site selection, architectural design and other areas of construction, but Popeyes
does not own the real estate or building.
Q: Can I purchase Popeyes restaurants from the company or from other franchisees?
A: Franchisees from time to time sell their restaurants, but Popeyes does not currently offer this
information to the public. If you were interested in purchasing a restaurant from one of our
franchisees, you would have to approach them directly.
Q: How long does it normally take to get approved to become a franchisee?
A: Normally the franchise application process takes between 90 and 120 days, but that can vary. The
length of time is determined by many things including how quickly the candidate returns the
required material to Popeyes and the amount of time it takes to arrange financing.
Q: Once I am approved to become a franchisee, how long until I can actually open a Popeyes
restaurant?
A: You agree to the opening date of your first restaurant in the development agreement, but as a rule
most people open their first restaurant within one year.
FRANCHISE SALES PROCESS
 Initial Franchise Inquiry Made Via Website/Phone/Web Portal
 Initial conversation with NBD Manager
 Review FDD & return “Receipt of FDD”
 Introduction to Franchising Manager
 Submit Application Package
 Perform due diligence / Speak to Existing Franchisees
 Interview/Call with Director of Development
 Interview/Call with Regional Director of Operations or Business
Consultant
 Discovery Day - Corporate visit with Executive Team
 Corporate Approval
 Development Agreement Executed
 Site Selected
 Site Accepted
 Construction Begins
 Schedule Managers for Training
 New Franchisee Orientation Program in Atlanta (1-day)
 Franchise Agreement Executed
 Restaurant Opens
Franchise Application
ALL APPLICANTS
Date:____________________________________
Please fill out this
(Please type or print clearly)
section
How did you become aware of this franchise opportunity?
Magazine
List: _______________________
Newspaper
Specify _____________________
Store Visit
Where: _____________________
Trade Show
Where: _____________________
Referral
Whom: _____________________
Other
Describe: ____________________
I am interested in:
Single Locations
Multiple Locations
Free Standing Unit
Food Court Unit
C-Store Unit
In-line Unit
Individual
A Partnership
Other
Franchisee will be:
A Corporation
All individuals and partnerships fill out sections A, B, C, F & G
All corporations fill out sections D, E, F & G
If you plan to have business partners, list names and addresses below. If names are to be included on the Franchise
Agreement, please have these individuals fill out a separate application.
INDIVIDUAL or
PARTNERSHIP
APPLICANTS
Name
Address
City
State
Zip
Phone Number
Name
Address
City
State
Zip
Phone Number
A. Individual Biographical Data
Please fill out this section
Name
Social Security Number
Date of Birth (Month/Day/Year)
Citizenship (Country)
Name
Social Security Number
Date of Birth (Month/Day/Year)
Citizenship (Country)
Street Address
City
How Long at this Address?
State
Home Phone Number
E-mail Address (1)
County
Zip
Cell Phone Number
FAX Phone Number
E-mail Address (2)
B. Employment History (Attach Resume if You Wish)
Self-Employed:
Employed By:
Name of Company
Street Address
Current Employer
City
Number of Years
State
Phone Number
Zip
Position
May we contact you at work?
Other Income
Describe
C. Financial Information
Current Salary Per Year
Total Assets
Do you:
Total Liabilities
Total Net Worth
Own Home:
Rent
Current Value
Mortgage
Do you have a Financing Source?
No
Yes:
List
Amount of Financing Available
If qualified, when would you be ready to invest in a franchise?
Month/Year
Total Cash Available for Investment
CORPORATE
APPLICANTS
D. Corporate Biographical Data
Please fill out this section
Company Name
Contact Name
Federal Tax ID
Dun & Bradstreet #
Social Security Number
Title
Address
City
Phone Number
State
Zip
FAX Number
Date of Incorporation
Years in Business
State of Incorporation
Name
Title
% of ownership
Name
Title
% of ownership
Name
Title
% of ownership
Name
Title
% of ownership
E. Corporate Officers
ALL APPLICANTS
F. Development Data
Please fill out this section
Market areas preferred:
1)
2)
3)
Who will be responsible for the daily operations of the business?
operator's name
Please list operator's experience:
Company name
Position
Number of Years
Company name
Position
Number of Years
Company Name
Position
Number of Years
Are you currently involved with any restaurant franchise(s)? ___ Yes ___ No
If yes, please list brand(s) and type(s) of food served:
Brand Name
Type of Food Served
Brand Name
Type of Food Served
Brand Name
Type of Food Served
G. Background Information
Have you ever been convicted of a felony?
No
Yes *
*If yes, please provide detailed information below as to the nature of the conviction, including the date and state
where the conviction was rendered.
Please note that the following documents ARE REQUIRED for an applications package to be considered
complete:
1) Completed Application (Failure to answer applicable questions will delay action)
2) Audited Financial Information including balance sheets, income statements, cash flow analysis (Corporations Only)
3) Completed Financial Verification Form
H. STATEMENT OF CERTIFICATION
I certify that the information contained in this application is true and complete. You are authorized to make an investigative
report including any inquiries that you deem necessary to verify the accuracy of this information and to determine my credit
worthiness. All information will be kept confidential.
Signature
RETURN TO:
Date
Popeyes Support Center
Attn: New Business Development Manager
5555 Glenridge Connector, N.E., Suite 300
Atlanta, GA 30342
Phone: 404.459.4521 Fax: 404.459.4523
Personal/Corporate Financial Statement Form
Please complete this form OR attach a Balance Sheet & Income Statement
Answer all questions using "no" or "none" where necessary. Please begin by completing schedules on reverse side if necessary. In the electronic version, please use Alt + Return to begin a new line in a cell.
Date of Statement
Personal Information
Name (first, middle, last)
Phone number
Email address
Social security number
Home address (include apt.)
City, State, Zip
How long
Business/Employer
Title/Position
How long
Business Address
City, State, Zip
Phone number
(
)
Do you have any dependents? If yes, list ages:
Do you have a will? If yes, name executor:
Have you ever taken bankruptcy? If yes, explain:
Are you a defendant in any suits or legal actions?
If joint statement, list names of individuals whose assets, liabilities and income are included
Assets
Liabilities
Cash, on hand and unrestricted in banks
From below
$
Notes payable to banks
Schedule 1
$
$
Notes and accounts due others
Schedule 1
$
$
Loan(s) against life insurance
Schedule 3
$
$
Brokers margin accounts
$
$
Taxes accrues by unpaid
Mortgages payable on real estate
Schedule 5
$
Accounts/Notes-receivable
Schedule 2
Cash surrender value life insurance. (Do not deduct loans)
Schedule 3
Listed (AMEX, NYSE) stocks, bonds, USGovt. Securities
Schedule 4
Other stocks and bonds
Schedule 4
Real estate at cost or market value
Schedule 5
$
Automobiles
$
$
$
$
$
$
$
Other assets - itemize
Net Worth
$
Other liabilities - itemize
$
$
$
$
$
$
$
$
$
Total Assets
$
0
$
Total Liabilities
$
Subtract your total liabilities from total assets and enter figure to right
Contingent Liabilities
$
As guarantor or co-maker, Legal claims on leases or contracts
Income Information ___ Monthly ___
0
Banking Relationships
Annual
Alimony, child support or separate maintenance income need not be revealed if you do not wish to have it
considered as a basis for repaying this obligation.
Name and address
of bank
Cash
Balance
Salary (Gross)
$
Bonus and commissions, dividends, interest
$
$
Rental income
$
$
Other - itemize
$
$
$
$
$
Total income
Single (S) Joint (J) Trust (T)
$
Total Cash (take to assets above)
I warrant that there is no judgement against me nor lien unstaisfied upon my property except as shown, nor prior suit pending against me in any court, that no
assets are pledged in any manner not shown herein, and that this statement is true and complete and is offerred for the purpose of obtaining and maintaining
credit. With joint credit, all applicants must sign.
(Seal)
Date
Signature
Received By ____________________________________
(Seal)
Date
Through ________________________________________
Signature
Office ___________________
Please Complete Schedules on Reverse Side (Go to Sheet 2 in Workbook in electronic version)
Supplementary Schedules (take totals to front)
Schedule 1
Debts/Credit Lines (Include home and any other open-end revolving credit, even if unused)
Name and address of bank
Credit
line
Endorsement or
collateral (describe)
Total
Name and address of others
Total
Schedule 2
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Amount owing
Description or nature of debt
Repayment terms
$
$
$
Surrender
value
Face amount of
policy
Insurance Co.
Beneficiary
$
$
$
Loans against
policy
$
$
$
Yearly Premium
Is policy
assigned?
Type of policy
$
$
$
Stocks, Bonds, and US Government Securities
Registered
in name of
Face value (bonds)
No. of shares (stocks)
Market
value/share
Total Market
Value
$
$
$
$
$
$
$
$
Total
Listed
Total
Unlisted
Pledged
Yes/No
Listed (L) on NYSE, AMEX
Unlisted (U) Government Security (G)
$
$
Real Estate
Description or address to
include city and state
Title
in name of
Other Credit References
Market Value
Cost
Tax Value
Original Amount
Monthly
payment
Unpaid Balance
Date acquired
Total
Name and address
Description of security
Life Insurance
Description of Security
Schedule 5
Monthly
payment
$
$
$
$
Schedule 4
Unpaid
Balance
$
Maturity date
Total
Name of insured
Original
Amount
Accounts, Loans, and Notes Receivable
Name and address of debtor
Schedule 3
Attach additional pages if necessary
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
(Give names of banks, finance companies or
other concerns where credit has been obtained)
Date
Account number
Type of account
High Credit
$
$
$