El Pollo Loco lowers initial franchise fees, royalty fees to boost expansion

Chicken restaurant chain El Pollo Loco said Monday that it is lowering initial franchise fees and royalty fees in order to boost growth in new markets. The reduced 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%.

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