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Updated RecentlyGolden Chick vs El Pollo Loco Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Golden Chick vs El Pollo Loco including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $440,950 - $1,348,500 | $900,000 - $1,755,000 |
| Franchise Fee | $30,000 | $40,000 |
| Royalty Fee | 4% | 2%-3%-4% |
| Advertising Fee | 1% | - |
| Year Founded | 1967 | 1975 |
| Year Franchised | 1972 | 1980 |
| Term Of Agreement | 20 years | 20 years |
| Term Of Agreement | 20 years | 20 years |
| Renewal Fee | $10K | - |
Business Experience Requirements |
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| Experience | 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 |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | No/Yes | No/No |
| Start-up Costs | No/No | No/No |
| Equipment | No/Yes | No/No |
| Inventory | No/Yes | No/No |
| Receivables | No/Yes | No/No |
| Payroll | No/Yes | No/No |
Training & Support |
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| Training | On-The-Job Training: 140 hours Classroom Training: 40 hours | * 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 Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software | Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations |
| Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media Email marketing Loyalty program/app | 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 |
28% of all franchisees own more than one unit Number of employees needed to run franchised unit: 12 - 15
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
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 |
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| US Expansion | Yes | Yes |
| Canada Expansion | No | No |
| International Expansion | Yes | No |
Company Overviews
About Golden Chick
Veteran Incentives 33.33% off franchise fee
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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%.