KFC US LLC vs El Pollo Loco Franchise Comparison

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

Start-Up Costs and Fees
 
KFC US LLC Franchise
El Pollo Loco Franchise
Investment $1,008,550 - $2,771,500$900,000 - $1,755,000
Franchise Fee $45,000$40,000
Royalty Fee 4-5%2%-3%-4%
Advertising Fee 5%-
Year Founded 19301975
Year Franchised 19521980
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee $4.9K-


Business Experience Requirements
 
KFC US LLC Franchise
El Pollo Loco Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills
    		• 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
     
    KFC US LLC Franchise
    El Pollo Loco Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/No
    Start-up Costs No/YesNo/No
    Equipment No/YesNo/No
    Inventory No/YesNo/No
    Receivables No/YesNo/No
    Payroll No/YesNo/No

    Training & Support
     
    KFC US LLC Franchise
    El Pollo Loco Franchise
    Training On-The-Job Training: 6 weeks Classroom Training: 2 days * 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 Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations
    Marketing National Media Social media SEO 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

    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
     
    KFC US LLC Franchise
    El Pollo Loco Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesNo

    Company Overviews

    About KFC US LLC

    His recipe is still a secret, but more than 2 billion of Colonel Harland Sanders' 'finger lickin' good' chicken dinners are served annually in more than 82 countries around the world. Nearly 50 years ago, Colonel Sanders set out to sell complete meals to time-strapped families, calling his home meal replacements 'Sunday Dinner, Seven Days a Week.' Acquired by PepsiCo in 1986, KFC is now a part of Yum! Brands Inc., which includes A&W, Long John Silver's, Taco Bell and Pizza Hut.

    The total investment necessary to begin operation of a newly constructed KFC outlet ranges from $1,442,600 to $2,771,550. This includes $45,000 to $50,000 that must be paid to KFCLLC or its affiliates.
    The total investment necessary to begin operation of a reopened or remodeled former KFC outlet, or converted KFC outlet ranges from $1,008,600 to $2,221,550. This includes $45,000 to $50,000 that must be paid to KFCLLC or its affiliates.
    KFCLLC also offers multi-unit development opportunities. The total investment necessary to begin exercising development rights is estimated to be $135,000 to $540,000 (based on the expectation that you will develop 3 to 12 outlets during the term of the development agreement), determined by multiplying the number of new outlets you agree to develop by $45,000, all of which must be paid to KFCLLC.
    The total investment necessary to begin operation of a KFC non-traditional outlet ranges from $241,100 to $996,000. This includes $12,100 to $17,100 that must be paid to the licensor or its affiliates.

    "Top   ""    "Entrepreneur

    #13 in Canada's Top franchises.
                              
    "franchiserankingscom"
    #26 on Franchise Rankings.com
    #24 in Franchise 500 for 2020.
    #25 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%.