EL POLLO LOCO INC FRANCHISE AGREEMENT

EL POLLO LOCO INC FRANCHISE AGREEMENT

El Pollo Loco franchises operate quick-service restaurants that specialize in fire-grilled, Mexican-style chicken and related food products and services. The business model involves licensing the company's proprietary System, including trademarks, recipes, building designs, and operational standards, to franchisees who pay initial fees, royalties, and advertising contributions. The target market is consumers in the competitive fast-food and quick-service restaurant industry seeking flavorful, grilled meals.

328
Locations
$794K–$2686K
Investment
Since 1980
Franchising
Food & BeverageCosta Mesa, CAEl Pollo Loco Holdings, Inc.www.elpolloloco.comDisclaimer

Franchise Costs


Franchise Fee
$40,000
Item 5 of FDD
Initial Investment Range
$793,750 $2,685,500
Low: $793,750High: $2,685,500
Item 7 of FDD
Royalty Rate
5.00%
of gross sales
Brand Fund
5.00%
Item 6 of FDD
Fixed Monthly Fees
$1,600 – $1,700
Item 6 of FDD

5% royalty + 5% ad fund (4% in LA DMA) + approx $1,600/mo fixed fees (POS/IT support, software, LMS, reporting, digital boards, security, pest control)

How EL POLLO LOCO INC FRANCHISE AGREEMENT Compares


Key Insights

  • Higher investment than 84% of Fast Casual franchises
  • Top 10 largest franchise system in Fast Casual
  • One of the lowest SBA loan default rates in Fast Casual
FranchiseInvestmentFeeRoyaltyLocations
EL POLLO LOCO INC FRANCHISE AGREEMENT
Current
$794K – $2.7M$40K5.0%328
Tropical Smoothie Cafe$300K – $721K$35K6.0%1,371
TROPICAL SMOOTHIE CAFÉ$300K – $721K$35K6.0%1,371
FIREHOUSE SUBS RESTAURANTS (UNIT)$405K – $1.6M$20K6.0%1,249
Zaxby's$1.4M – $3.8M$35K6.0%826
Qdoba$548K – $1.3M$40K5.0%652
Fast Casual Average
107 franchises
$532K – $1.2M$39K5.6%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 107 Fast Casual franchises by location count.

Locations & Growth


Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2025)

Outlets by state across the United States

Top States
1CA
246
2TX
32
3AZ
28
4UT
10
5NV
5
6CO
3
7LA
2
8WA
1
9NM
1

SBA Loan History


Historical SBA 7(a) loan data for EL POLLO LOCO INC FRANCHISE AGREEMENT franchisees (20102025)

Total Loans
23
Average Loan
$712,709
Total Volume
$16.4M
Default Rate
0.0%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts


315 franchisee contacts on file from official FDD filings.

NameSBA Loan
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active

315 Contacts Available

Unlock all EL POLLO LOCO INC FRANCHISE AGREEMENT franchisee contacts with verified contact information

Due Diligence


Litigation (Item 3)

Franchisee Cases3

Territorial/development rights disputes (Bryman franchisees), breach of non-solicitation clause (same franchisees), and trademark infringement/breach by former franchisee (MIK Food).

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
6
Reacquired
1
Ceased Ops
1
Transfers
21
Sold to Franchisees
0
Projected New
17

Frequently Asked Questions


The total initial investment to open a EL POLLO LOCO INC FRANCHISE AGREEMENT franchise ranges from $793,750 to $2,685,500. This includes a franchise fee of $40,000. Ongoing royalty fees are 5.0% of gross sales.

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