Pollo Campero
Pollo Campero offers uniquely-flavored chicken products in U.S.-based restaurants. Known for its flavorful menu items, it operates in the quick-service restaurant sector.
Pollo Campero franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation ranges from $1,454,650 to $2,807,300 for an in-line outlet and from $1,554,650 to $3,750,500 for a freestanding outlet (excluding real estate costs) [p.1].
What is the initial franchise fee?
The initial franchise fee is $40,000 for the first Restaurant covered by the Franchise Agreement to which the Incentive Program DRR is attached. For subsequent Restaurants under a Development Rights Rider, the initial franchise fee is typically $30,000 per Restaurant [p.13]. This fee is not refundable under any circumstances [p.94, p.12, p.259].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of the Restaurant's Gross Sales for each calendar week, paid on or before Friday of that week [p.94]. Advertising and marketing costs are expensed as incurred, but specific details about individual franchisee contributions to advertising funds are not provided in these excerpts [p.221].
How long is the initial franchise agreement, and can I renew it?
The term of the initial franchise agreement isn't specified in the excerpts. Additionally, whether you can renew the agreement and the conditions for renewal are not detailed here either.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, if you wish to sell or transfer your franchise rights, you must obtain a true and complete copy of a bona fide, executed written offer from a responsible and fully-disclosed buyer. This offer must include details on payment terms, financing sources, and an earnest money deposit of at least 5% of the proposed purchase price [p.127].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if there is a failure by the franchisee to comply with any lawful provision of the franchise agreement and such failure is not cured within a reasonable period, which cannot exceed 30 days [p.5]. Additionally, the franchisor may terminate the agreement on any grounds available by law [p.266].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts do not detail specific net worth or liquid capital requirements for franchisees to qualify.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. According to the FDD excerpts, you will face competition from other franchisees, from outlets that the company owns, or from other channels of distribution or competitive brands that the company controls [p.8, p.53].
What training and ongoing support does the franchisor provide?
The franchisor provides both initial and continuing training and support in management, operations, and promotions [p.221]. For new franchisees, an opening team is sent for up to 3 days of pre-opening training before the restaurant opens [p.48]. Ongoing, the franchisor may require attendance at various training courses and programs throughout the year, with a maximum of 5 days in total per calendar year [p.49]. Additionally, if needed, the franchisor can provide additional or special guidance after the opening phase, though this incurs costs for the franchisee [p.48]. Training fees range up to $500 per trainer per day plus expenses [p.49].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2023, there were 34 franchised POLLO CAMPERO® Restaurants. The FDD does not specify the number of closed or terminated franchises; however, it mentions that during 2022, the company closed six ghost kitchen restaurants but does not provide information on other franchise terminations [p.220].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet if you are purchasing one. However, they do not make general financial performance representations except for the required disclosure in Item 19 of their FDD. If you receive any other financial performance information or projections, you should report it to the franchisor and relevant regulatory bodies as specified [p.69].
What am I restricted to selling, and where must I buy supplies?
You are restricted to preparing and selling products at the physical location of your restaurant. You must operate according to Brand Standards when buying or leasing Operating Assets and other required products and services, which may include purchasing from designated or approved suppliers that we may specify in the future [p.30, p.32].