Los Pollos Bros Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$244,800 - $532,000
Franchise Fee
$30,000
Total US Locations
3
Business Summary
Los Pollos Bros operates restaurants that specialize in serving "seasoned to the bone," slow-roasted whole chicken. The business focuses on a proprietary system for its food service operations.
Corporate History
Los Pollos Bros Franchise Operations LLC was formed on May 26, 2022, as a California Limited Liability Company. It does business under its corporate name and Los Pollos Bros. The company began offering franchises in 2022. Prior to the formation of the franchising entity, its CEO, Jose Guadalupe Perez, Jr., operated Los Pollos Bros restaurants as a sole proprietor from September 2010 to January 2012, and then through affiliates (Perez Pollo Inc. formed 2012, Bros Pollo Inc. formed 2019, Los Pollos Bros #3, LLC formed 2021) since then.
Financial Overview
Investment Range
$244,800 - $532,000
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$30,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$80,000
Equipment Costs (High)
$140,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Los Pollos Bros is a relatively new franchisor, having been in business for less than three years. Item 21 of the FDD includes audited financial statements as of December 31, 2023, December 31, 2022, and July 1, 2022. The auditor's report attached in Exhibit F indicates an unqualified opinion, meaning the financial statements are presented fairly in all material respects. There are no specific notes in Item 21 or the auditor's report highlighting concerns about working capital or the company's ability to continue operations.
Financing Details
Los Pollos Bros does not offer any direct or indirect financing to franchisees. Franchisees are responsible for securing their own funding, and Los Pollos Bros does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
3
Franchised Units
0
Corporate Units
3
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Los Pollos Bros has no litigation to report. Item 3 of the FDD states that there is no litigation required to be disclosed.
Bankruptcy History
Los Pollos Bros has no bankruptcy history. Item 4 of the FDD states that there is no bankruptcy information required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew the franchise agreement, Los Pollos Bros franchisees must have fully complied with all material provisions of their agreement, made necessary capital expenditures to maintain uniformity with current system standards, and satisfied all financial obligations to Los Pollos Bros or its affiliates. Franchisees must not be in default of any agreement with Los Pollos Bros, provide timely written notice of their intent to renew between 9 and 12 months before the agreement ends, and sign the then-current franchise agreement (which may have different terms). Additionally, franchisees must meet current qualification standards, agree to any new training requirements, sign a general release of claims against Los Pollos Bros (subject to state law), and pay a renewal fee equal to 25% of the then-current initial franchise fee.
Training & Support Program
Franchisor Assistance
Before opening, Los Pollos Bros provides initial training for the franchisee and up to two manager-level employees, along with guidance for opening and establishing the business. They loan a copy of the Operations Manual or provide electronic access, offer assistance with pricing products and services, and guide franchisees in obtaining equipment, signs, fixtures, initial inventory, and supplies by providing specifications or a list of approved suppliers. They also offer limited help with conforming premises to local codes and obtaining permits, and provide guidance on employee hiring and staffing (though franchisees retain sole responsibility for employment matters). After opening, Los Pollos Bros offers general advice and guidance by phone or email regarding business planning and operations, provides ongoing training as needed, and updates the Operations Manual with modifications.
Initial Training Hours
51
Training Location
One of Los Pollos Bros' Affiliate locations in Victorville, Hesperia, or Apple Valley, CA, or another designated franchisor training center.
Ongoing Support
After opening, Los Pollos Bros franchisees receive ongoing support through general advice and guidance by telephone and/or electronic correspondence, which covers business planning and operations. Los Pollos Bros also makes ongoing training available as deemed necessary. Franchisees will receive modifications to the Operations Manual as they are made available.
Franchise Requirements
Ideal Candidate Profile
Los Pollos Bros is looking for individuals or entities with the financial resources, industry experience, and business acumen to successfully develop and operate multiple restaurants. For area developers, additional qualifications include a proven track record in the industry and strong marketing and sales plans. Owners or designated managers are required to devote at least 40 hours per week to the day-to-day operations of the Franchised Business.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
exclusive
Territory Size Requirements
Los Pollos Bros grants franchisees an exclusive territory, typically defined as a 3-mile radius around their restaurant. This means Los Pollos Bros promises not to establish either a company-owned or franchised restaurant selling similar goods or services under the same or similar trademarks within this defined geographic area.
Staffing Notes
Los Pollos Bros requires that the Franchised Business always be under the direct supervision of the franchisee or an approved Designated Manager who has successfully completed their training program. The franchisee or Designated Manager must dedicate at least 40 hours per week to the day-to-day operations, not including vacation or sick leave. Los Pollos Bros provides assistance in determining the type and number of employees to hire, but emphasizes that the franchisee is solely responsible for all employment-related decisions, including wages, benefits, scheduling, hiring, firing, discipline, and supervision. Franchisees must disclose in writing to their employees that Los Pollos Bros is not a "joint employer."