Carl's Jr vs El Pollo Loco Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Carl's Jr vs El Pollo Loco including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
	Carl's Jr Franchise	El Pollo Loco Franchise
Investment	$1,603,000 - $2,168,000	$900,000 - $1,755,000
Franchise Fee	$25,000 - $35,000	$40,000
Royalty Fee	4%	2%-3%-4%
Advertising Fee	6%	-
Year Founded	1945	1975
Year Franchised	1984	1980
Term Of Agreement	20 years	20 years
Term Of Agreement	20 years	20 years
Renewal Fee	Varies	-
Business Experience Requirements
	Carl's Jr Franchise	El Pollo Loco Franchise
Experience	Industry experience General business experience Preferable operational experience in a restaurant, but will consider people who have owned their own business	We require a minimum of five years of experience as an owner/operator within the restaurant industry. You must also live in the area of development in order to manage the restaurant on a daily basis.
Financing Options
	Carl's Jr Franchise	El Pollo Loco Franchise
	In-House/3rd Party	In-House/3rd Party
Franchise Fees	No/No	No/No
Start-up Costs	No/No	No/No
Equipment	No/No	No/No
Inventory	No/No	No/No
Receivables	No/No	No/No
Payroll	No/No	No/No
Training & Support
	Carl's Jr Franchise	El Pollo Loco Franchise
Training	Available at franchisee's location, 12 weeks of management training & at grand opening	* Seven weeks pre-opening training for franchisee and restaurant managers * Franchise training consultants offering ongoing training programs for crew and management * Complete restaurant-opening support
Support	Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations, Purchasing cooperatives	Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations
Marketing	Co-op advertising, Ad slicks, National media, Regional advertising	Has a proven history of successful marketing Is aligned with award-winning advertising agencies Utilizes a strategic approach to building a strong brand Is focused on driving traffic and sales profitably We provide a full array of targeted advertising tools and marketing plans to build awareness and drive customers into our restaurants through: Innovative marketing and advertising campaign Development and execution of bilingual promotional strategies Product innovation to fuel sustained growth Support for grand openings Marketing plans tailored to each market's needs Effective communication and support of franchisees' needs Access to El Pollo Loco's online LSM toolkit (at franchisees disposal)
Operations	Franchisees required to buy multiple units/master licenses; 100% of all franchisees own more than one unit Absentee ownership of franchise is NOT allowed.	Franchisees required to buy multiple units/master licenses; 40% of all franchisees own more than one unit Number of employees needed to run franchised unit: 25 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)
Expansion Plans
	Carl's Jr Franchise	El Pollo Loco Franchise
US Expansion	Yes	Yes
Canada Expansion	No	No
International Expansion	Yes	No

Company Overviews

About Carl's Jr

Carl's Jr. is known all through the Western U.S. as the place to go for premium quality burgers, specifically its 100% Angus hamburger Six Dollar Burger line.

At Hardee's® and Carl's Jr.® our brand sets us apart from the competition. Our advertisements are created to be so bold and memorable that they've been known to crash internet video servers. Our taglines deliver bold statements and our visuals are designed to keep viewers wanting more. EAT LIKE YOU MEAN IT.

Hardee's® and Carl's Jr.® have a strong track record of successfully developing new premium products to lead the category in taste, quality, and innovation. As an industry leader, we have consistently out-delivered all other quick-service restaurants in product development since our founding. Staying on top requires that we continue to lead the way in the products we serve through taste, quality, and innovation.

#202 in Franchise 500 for 2021.

About El Pollo Loco

In 1975, Juan Ochoa opened a roadside chicken stand in Guasace, Mexico, he called El Pollo Loco. Ochoa served chicken the same way his mother did, hand-marinating using an old family recipe and flame-broiling. The stand quickly grew in popularity, and over the next four years, Ochoa's family opened 85 restaurants in Northern Mexico. The chain moved into the United States in 1980 with the first restaurant opening on Alvarado Street in Los Angeles, California. El Pollo Loco featured an authentic recipe of fresh chicken marinated in special herbs, spices and citrus juices, and then fire-grilled to perfection. The restaurant quickly became a local favorite. Over the years, El Pollo Loco has added tacos, burritos and salads to its menu, all featuring the Ochoa family's chicken. In 1995, the chain entered into a joint venture with Foster's Freeze to offer soft-serve treats at El Pollo Loco restaurants. Today, the tradition continues with signature dishes that satisfy consumers’ desire for flavorful food that fits well with today's active lifestyles. We're currently fire-grilling marinated chicken in about 400 company and franchise-owned El Pollo Loco restaurants.

Franchise fees apply to new and existing franchisees with multi-unit development agreements in new markets through March 31, 2018. The initial franchise fee has been cut to $30,000 for the first restaurant and $20,000 for each additional restaurant. The standard franchise fee is $40,000, and $30,000 for secondary units. The initial franchise fee for any restaurant opened in the calendar year ahead of the year in their development schedule will be cut by 50%. And any restaurants opened beyond the multi-development agreement will be eligible for a zero dollar initial franchise fee. Royalty fees have also been reduced for the first time in three years: 2% for the first year, 3% in the second year, and 4% in the third year. The standard royalty fee is 5%.