El Pollo Loco

The current 2026 FDD estimates the initial investment at $793,750 to $2.6855 million per restaurant. The range covers costs such as building improvements, site improvements, equipment, signage, technology and initial working capital. El Pollo Loco’s current franchise page states that real estate costs are not included because they vary by market.

The initial franchise fee is $40,000 per restaurant. Under a multi-unit development agreement, a $20,000 development fee per restaurant is credited toward the applicable initial franchise fee, while the franchise fee for the second and subsequent restaurants can be reduced to $30,000 under the development agreement described in the FDD.

El Pollo Loco is looking for experienced restaurant operators, rather than first-time restaurant investors. Its current franchise-process page requires at least five years of experience as a restaurant owner/operator and requires the franchisee to live in the development area and manage the restaurant on a daily basis.

The same page currently lists $1.5 million in net worth and $600,000 in liquid assets per unit. Another official application page gives lower thresholds, so applicants should confirm the applicable requirements with the franchise development team.

The standard royalty is 5% of monthly net sales. The advertising fee is also 5% of monthly net sales, except for restaurants located within the Los Angeles DMA, where the advertising fee is 4%.

El Pollo Loco has also offered development incentives that temporarily reduce both royalty and advertising fees for qualifying new franchisees. The exact rates depend on the development agreement and opening date, so prospective franchisees should review the current FDD and agreement rather than assume the standard rates apply in every case.

The current 2026 FDD filing does not include an Item 19 financial performance representation, so there is no current FDD-disclosed average annual revenue figure that should be presented as an official benchmark.

Some third-party franchise databases report an AUV of approximately $2.23 million, but because this conflicts with the FDD extraction showing no Item 19, I would not use that number as the official average for a franchise profile.

As always, gross sales should not be confused with profitability. Franchisees must account for labor, food, occupancy, royalties, advertising and other operating expenses.

Yes. El Pollo Loco actively supports multi-unit development, and its development agreement is specifically structured around developing multiple restaurants within a defined territory. The agreement includes a development schedule specifying when individual restaurants must open.

The brand’s current franchise strategy is also focused on experienced multi-unit operators. Its expansion into New York, for example, involves three development agreements covering 15 restaurants over five years.