The Port of Peri Peri Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$127,400 - $500,000
Franchise Fee
$25,000
Min Cash Required
$24,000
Total US Locations
29
Business Summary
The Port of Peri Peri offers the opportunity to own and operate restaurants serving made-to-order, all-natural, fresh ingredients in a fast-casual environment. The Port of Peri Peri menu features signature Peri Peri chicken and other proteins, used in sandwiches, pitas, wraps, salads, and side dishes. The franchise offers various restaurant models including Traditional, Food Truck, Express (for malls, airports, etc.), and Commissary (delivery-only) locations.
Corporate History
The Port of Peri Peri system was initially developed by DJL Restaurant Enterprise LLC, formed in February 2013, which began offering franchises under the 'Porto's Peri Peri' mark in 2017. MPower Ventures LLC, formed in April 2017, acquired the system from DJL on August 28, 2017, and continued offering franchises under the 'Porto's Peri Peri' mark. Peri Peri Holdings LLC, the current franchisor, was formed in Delaware on December 6, 2019, and acquired The Port of Peri Peri brand from MPower Ventures LLC in January 2019. Peri Peri Holdings LLC began offering franchises in 2019 under the name 'The Port of Peri Peri'.
Financial Overview
Investment Range
$127,400 - $500,000
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Minimum Cash Required
$24,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$50,000
Equipment Costs (High)
$325,000
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Peri Peri Holdings LLC appears to be financially healthy and profitable. For the year ended December 31, 2023, the company reported a net income of $223,556. This follows net incomes of $344,024 in 2022 and $46,782 in 2021. The balance sheet as of December 31, 2023, shows total assets of $762,311 and total liabilities of $59,991, resulting in members' equity of $702,320. The independent auditor's report for the year ended December 31, 2023, provides an unqualified opinion, indicating that the financial statements present fairly, in all material respects, the financial position in accordance with generally accepted accounting principles. The auditors did not identify any conditions or events that raise substantial doubt about Peri Peri Holdings LLC's ability to continue as a going concern.
Financing Details
Peri Peri Holdings LLC does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
29
Franchised Units
16
Corporate Units
3
Avg Square Footage
1,800
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Peri Peri Holdings LLC had one concluded litigation case involving its predecessor, MPower Ventures LLC, and itself. The case, Ismail, et al. v. MPower LLC, et al., was initially filed in December 2018 in federal court, then refiled in New Jersey Superior Court in March 2019, and later removed back to federal court in April 2019. The plaintiffs, a former franchisee, sought rescission of agreements and alleged violations of the New Jersey Franchise Practices Act, common law fraud, negligent misrepresentation, breach of contract, tortious interference, and successor liability. The parties entered into a settlement agreement on April 26, 2020, where the agreements were terminated, parties released each other, and the defendants paid the plaintiffs $67,000.
Bankruptcy History
Peri Peri Holdings LLC has no bankruptcy history to report for itself or its predecessors, as stated in Item 4 of the FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Port of Peri Peri franchisees must be in good standing and meet defined requirements. This includes providing notice between 6 and 9 months before the current term ends, executing the franchisor's then-current franchise agreement (which may have different terms), signing a general release of claims, paying a renewal fee of $10,000, attending any prescribed refresher training courses, and remodeling or refurbishing their restaurant to meet current brand standards, specifications, and designs.
Training & Support Program
Franchisor Assistance
Peri Peri Holdings LLC provides pre-opening assistance to its franchisees, including granting the right to use the Marks, offering site selection guidance and demographic analysis, designating a Designated Territory, and providing typical floor plans and build-out specifications. Franchisees and designated managers receive initial training at the corporate headquarters or a designated facility. The franchisor also offers pre-opening and grand opening assistance at the restaurant with designated staff and helps with ordering initial supplies and products. Ongoing support includes periodic operating assistance regarding the System, such as advice on food preparation, menus, advertising, promotions, and new food developments. Franchisees also receive additional manuals, business information, literature, training materials, and periodic inspections of their restaurant operations.
Initial Training Hours
57
Training Location
Corporate training center in Villa Park, Illinois
Ongoing Support
Peri Peri Holdings LLC provides ongoing operational assistance with the System, including improvements and changes to the System as deemed advisable. This assistance may cover advice and guidance regarding food preparation, menus, food recipes, advertising, promotions, and evaluating and testing new food developments. The franchisor furnishes other manuals, business information, and literature, along with additional instructional and training materials. Periodic inspections of the restaurant and its operations are also conducted to evaluate methods employed.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
The Port of Peri Peri typically defines a Designated Territory as a 5-mile radius around the franchisee's approved premises. However, if the restaurant is in a major metropolitan downtown area or central business district, the Designated Territory may be limited to a 2-block to 5-mile radius around the premises, or a geographical area with a population of up to 30,000. The size of the territory can vary based on factors like market demand, demographics, population, median household income, competitor presence, traffic patterns, and visibility.
Staffing Notes
The Port of Peri Peri requires that the franchisee (or an approved designated individual) be the primary operator of the restaurant, devoting substantial full-time efforts daily to its supervision. For multi-unit owners, each The Port of Peri Peri Restaurant should have a Designated Manager who commits substantial full-time efforts to its operation. This Designated Manager must successfully complete The Port of Peri Peri's training program and does not necessarily need an ownership interest in the franchisee entity, though a 10% interest is the stated best practice, which can be waived. All key employees and managers who may have access to The Port of Peri Peri's confidential information must sign a Confidentiality Agreement. At least one person who has completed the initial training program must manage The Port of Peri Peri Restaurant at all times. Franchisees are responsible for properly training all employees on sales, advertising, premises maintenance, point-of-sale system usage, and all other operational standards and specifications. Management responsibilities include ensuring the presence of a Designated Manager, manager, or assistant manager during all business hours, maintaining high standards of product quality, consistency, sanitation, cleanliness, and appearance, and supervising employees to ensure courteous and professional service to customers and suppliers.