Over the past two decades, the economics surrounding the United States of America have undergone some drastic changes. With technology changing how people live and think, many businesses have either closed shop or remained active only online.
However, you might be surprised why real estate investors are running towards fast food investments such as popeyes restaurants for sale. Let’s get a little insight as to why.
From time immemorial, one activity people have always engaged in is eating. Over the years, restaurants have evolved and incorporated some add-ons to make their business models stand the test of time.
Some of these fast food outlets have amassed quite the reputation and are now selling franchises to individuals who’d like to use their name for effective marketing.
In this article, we’ll be taking a closer look at Popeyes restaurants for sale, why people are purchasing this fast-food franchise, the pros and cons attached, and considerations to make before heading into one.
While this topic might come off as foreign for newbie investors, perusing this article could make you a professional in practically no time. Let’s delve in!
Getting Started With Popeyes: Some Interesting Facts You Need to Know
While you might be in a hurry to see how some Popeyes franchise owners have fared after making acquisitions, it’s essential to take a trip down memory lane for a moment.
For starters, Popeyes came to the fore of fast food back in 1972 with branches in Louisiana, New Orleans, and Miami, FL (headquarters). That said, before their name changed into “Popeyes Louisiana Kitchen” or “Popeyes” as it’s popularly called today, it was under the guise of “Popeyes Chicken & Biscuits.”
From their humble beginnings, Popeyes has become a favorite in the US fast food industry as they have, according to a recent report, 3,451 active locations. However, a large chunk of this number is franchised. Now, what does it take to own a Popeyes franchise? Let’s find out in the following lines.
How to Buy a Popeyes Franchise: A Detailed Overview
Seeing the promise this fast food outlet holds from the details we’ve just given, it’s likely that you’ll like to know how to buy Popeyes franchise. Luckily, we’ve done our due diligence and have sought out some crucial points.
Collating info from a reputable source, investors looking to buy a Popeyes franchise must attain some financial requirements before they’re granted the license to operate. The values? $500,000 in liquid assets and a net worth not less than $1,000,000.
Also, depending on the location, investors would need to make an investment total of $234,000 to $454,000.
That’s not all:
You’ll also have to remit 5 percent of your total gross sales as a “royalty fee.” If you’re satisfied with these numbers and you’d like to secure that Popeyes restaurant for sale, here’s what you need to do:
First off, you’ll have to send a letter to Popeyes franchise team via email. In this mail, it’s crucial to state specifics about yourself, including your name, net worth, address, experience in the industry, assets, and net worth. To make your application more sturdy, you might want to indicate your desire to relocate if needs be.
What’s next? Well, you’ll have to wait. Once the necessary background checks are complete and your identity is verifiable, you’ll get contacted. Nevertheless, if your details don’t check out, you might have to go through this process time and time again.
Popeyes Franchises: Are There Any Pros and Cons to Expect?
Most new investors make the mistake of thinking fast-food investments are immune to changes that could dampen the desired ROIs. To these individuals, the astronomical statistics are constant.
While there’s some truth to this, with QSRs making more dividends with each passing day, things change. So, just like any investment that concerns real estate, there are bound to be some pros & cons with fast-food franchises. They are:
● Extensive Training
When you buy into a fast-food franchise, the franchisor teaches you the inner workings attached to that business entity. That way, the possibility of getting things wrong with Popeyes for sale in Canada is reduced to the barest minimum.
By purchasing a Popeyes restaurant franchise, there’s no need to build up a brand as you’d have done with a personal business venture. Here, your franchise’s brand attracts a suitable customer base to ensure patronage.
● Territorial Boundaries
When you sign an agreement to effect a franchise, you won’t compete with another business with the same brand as your franchise. Why? There are territorial limits within contracts to make this possible.
Consequently, it’s possible to focus solely on your enterprise rather than seek ways to outdo the competition.
In business, the launch usually determines the stance an entity takes in the long run. Most times, the issue most start-ups have is getting the best launch possible. This activity can lead to a cluster of ideas that might disable that enterprise before it gets going.
However, there’s no need to worry about the perfect launch in this business model, as all you’ll ever need is a budget and some level of experience in the hospitality industry.
Just like we’ve seen above, buying a franchise requires a sizable financial commitment. If the brand is amongst the top 10 QSRs, it’s a no-brainer that the prices would be increased.
Therefore, most investors tend to shy away from this real estate market.
● Almost Unattainable Standards
Every fast food outlet is bound by rules and regulations, which sets the tone for their stores in regions where they exist.
While the presence of these provisions is understandable, requirements to follow might come off as overwhelming at times.
Bankruptcy in franchises is something investors never want to happen. Why? When the brand’s owner seeks to file bankruptcy due to some financial constraints, your entire business might fall like a “pack of cards.”
Nevertheless, if you have a good customer base, the effects of bankruptcy shouldn’t weigh your franchise down.
Getting a Popeyes restaurant for sale seems like a promising prospect. However, you must understand that buying into a franchise isn’t the easiest of tasks as you’ll have to basically “put your money where your mouth is” to seal that deal.
If you’re looking to get the best structures for your franchise, you might want to take a look at what Buy NNN Properties has on offer. These days, units are going fast, and you’ll need to take action.