How To Read Pollo Campero’s 2024 Franchise Disclosure Document

The Franchise Disclosure Document (FDD) is full of valuable information, but it’s also often hundreds of pages long. Prospective franchisees are generally interested in Items 2 (business experience), 6 (initial investment) and 19 (financial representations), but each section has its purpose.

This article will walk you through Pollo Campero’s 2024 FDD while offering up some key points you’ll want to note as you research.

Item 1: The Franchisor and Its Parents, Predecessors and Affiliates

The franchisor, Campero USA Corp., was formed on July 3, 2003. It conducts business under the names “Pollo Campero” and “Campero.” Pollo Campero’s direct parent company is Campero, Inc., and its parent company is Campero International Holdings Corp. 

Pollo Campero’s affiliates include: Pollo Campero, S.A.; Pollo Campero Iberia S.L.; and Pollo Campero Advertising Fund, LLC.

Item 2: Business Experience

Pollo Campero is led by an experienced team of restaurant professionals, including:

• Jose Gregorio Baquero — Chief Executive Officer, CMI Foods 

Baquero has been the chief executive officer of the Food Business Group of CMI (Corporación Multi Inversiones) since February 2018. He first joined the CMI Corporate Board and the CMI Foods Advisory Board in June 2016 and served as an external director until January 2018.

• Luis Javier Rodas — Executive President, Chief Operating Officer and Managing Director 

Rodas has been the executive vice president, chief operating officer, and managing director of Pollo Campero since March 2018. He was the company's president from August 2016 to March 2018 and has been president of Campero, Inc. since August 2017. He has been with Pollo Campero since December 2016.

• James M. Meyer, Esq. — Vice President and General Counsel 

Meyer has been vice president and general counsel since February 2011 and has been with the company since 2004. He also holds various other leadership positions in Campero-related entities and has been a partner at Harper Meyer LLP since 2002.

• Jorge de la Parra — Director of IT (Information Technology) 

De la Parra has been the director of IT since November 2023. He previously worked as the director of restaurant systems and support for Ruby Tuesday from March 2022 to November 2023 and in various roles at Jack in the Box from 2004 to 2022.

• Carlos Santiago — Director of Supply Chain and Sourcing 

Santiago joined Pollo Campero in November 2022 as the director of sourcing and supply chain. Before that, he was a procurement business partner for Pollo Campero Central America from November 2021 to November 2022 and procurement manager from 2018 to 2021.

• Allyn Taylor — Vice President of Real Estate and Development 

Taylor has been the vice president of real estate and development since January 2024. Previously, he served as director of restaurant development and construction from August 2020 to January 2024 and worked as chief development officer for Velvet Taco from 2018 to 2020.

• Tracy Ziepprecht — Vice President of Marketing 

Ziepprecht joined Pollo Campero as vice president of marketing in November 2023. Before this, she served as vice president of creative services for Raising Cane’s Chicken Fingers from 2015 to 2023.

• Blas Escarcega, Jr. — Vice President of Franchise Development 

Escarcega has been with Pollo Campero since August 2008 and has held multiple roles, including director of finance and administration, senior director of finance, and vice president of franchise development since December 2021.

• Terry Grayson — Vice President of Construction and Facilities Management 

Grayson joined Pollo Campero as vice president of construction and facilities management in January 2024. He was previously the regional director of construction for Raising Cane’s from 2020 to 2023 and held senior roles in waste management from 2014 to 2019.

• Jose Fernando Perez — Vice President of Operations 

Perez has been vice president of operations since January 2024. He has been with Pollo Campero since January 2018, holding senior operations roles in corporate and franchised outlets. Before that, he worked in various management positions for Pollo Campero Central America from 2012 to 2017.

Item 3: Litigation

Pollo Campero has no litigation to disclose.

Item 4: Bankruptcy

Pollo Campero has no bankruptcy to disclose.

Item 5: Initial Fees

Pollo Campero’s initial fees include the following:

• Franchise Fee: $40,000, lump sum
• Transfer Fee: Franchisees purchasing an existing franchise location will pay the transfer fee rather than the franchise fee
• Site Visit Fees: $2,000 per site visit after the first visit
• Learning Management System Access: $800 - $1,200
• Market Introduction Program: $20,000+

Item 6: Other Fees

Other fees associated with Pollo Campero ownership (including ongoing fees) are as follows:

• Royalty: 5% of the restaurant’s weekly gross sales
• Brand Fund Contributions: Currently 1% of the restaurant’s weekly gross sales, never to exceed 5%
• Local Marketing Spend: At least 1% of the restaurant’s monthly gross sales
• Cooperative Contributions: Variable
• Successor Franchise Fee: $5,000 when you sign the successful franchise agreement if applicable
• Transfer of Franchise Rights: $10,000, or $5,000 If the proposed transfer is among existing owners, immediate family members or an entity controlled by the franchisee
• Transfer of Non-Controlling Ownership Interest in Franchisee: $5,000
• Ongoing and Supplemental Training and Assistance: Variable, though not to exceed $500 per trainer per day
• Retraining of Managing Owner, Operator, Restaurant Manager or Replacements: Variable, though not to exceed $500 per trainer per day
• Learning Management System: $800 - $1,200 per year
• Annual Meeting/Convention: Variable, though not to exceed $500 per person excluding out-of-pocket attendance costs paid to third parties
• Product and Service Purchases: Variable
• Testing and Evaluation Costs: Variable
• Computer Software and Technology, Support and Upgrades: Not to exceed $100 per month
• Franchise System Website/Intranet: Not to exceed $100 per month
• Relocation Process: $5,000+, only if the restaurant is relocated
• Relocation Lost Royalties: Variable
• Audit: Variable

Item 7: Estimated Initial Investment

The estimated initial investment to open a Pollo Campero ranges from $1.4 to $2.8 million. This includes the following costs:

• Initial Franchise Fee: $30,000 - $40,000
• Rent: Variable
• Real Property — Building/Build-Out Costs: $840,000 - $1,500,000
• Real Property — Site Development Costs: $25,000 - $800,000
• Soft Costs: $50,000 - $250,000
• Additional Development Costs: $50,000 - $125,000
• Restaurant Furniture, Equipment, Fixtures & Décor: $295,000 - $600,000
• Signs: $100,000 - $120,000
• POS: $40,000 - $60,000
• Opening Inventory: $16,500 - $31,500
• Business & Operating Permits: $2,500 - $5,500
• Initial Training Travel & Living Expenses: $12,900 - $37,500
• Insurance: $10,000 - $25,000
• Uniforms: $1,500 - $2,000
• Miscellaneous Opening Costs: $5,250 - $23,500
• Marketing Start-Up Expenditure: $40,000 - $80,000
• Additional Funds (3 Months): $36,000 - $50,000

Item 8: Restrictions on Sources of Products and Services

Pollo Campero requires all restaurants to be operated according to brand standards. Among other things, these regulate the types, models and brands of furniture, fixtures and equipment used. Franchisees must buy or lease all operating assets and other products and services for the restaurant in accordance with brand standards.

All marketing materials that were not previously prepared or approved must be sent to Pollo Campero at least 15 days before use. If they are not approved within those 15 days, they are deemed disapproved and franchisees cannot use them.

Pollo Campero has the right to pre-approve the architect and general contractor the franchisee intends to use to develop the restaurant.

Item 9: Franchisee’s Obligations

This Item outlines the responsibilities of the franchisee and notes where in the franchise agreement the franchisee can find more details.

Item 10: Financing

Pollo Campero does not offer any financing, nor does it guarantee any obligations of the franchisees.

Item 11: Franchisor’s Assistance, Advertising, Computer Systems and Training

This section outlines the support provided by the franchisor. Pollo Campero is not required to provide any assistance not listed in this Item. This list outlines pre-opening and ongoing support and provides more details on advertising and marketing, including the brand fund, local marketing, advertising approvals and websites.

It also discusses support for the computer system, opening process, training options and learning management.

Item 12: Territory

This Item provides more details on the territory a franchisee will operate within. While franchisees must operate their restaurants from a site previously accepted by the franchisor, they also receive an area of protection around the site.

Item 13: Trademarks

This item shows which marks Pollo Campero franchisees can use, including the brand name, logo and mascot. It also lists marks the brand has applied for.

Item 14: Patents, Copyrights and Proprietary Information

There are no patents or patent applications material relating to the franchise. Pollo Campero retains the rights to confidential internal information like operational playbooks, marketing materials and design features. A franchisee may only use protected information for its intended purpose.

Item 15: Obligation to Participate in the Actual Operation of the Franchise Business

This Item provides more information on how the business should be operated. Pollo Campero requires that each owner designate a managing owner — who owns at least 10% — as well as an operator, who is not required to have any ownership interest.

Each restaurant must also have three fully-trained managers.

Item 16: Restrictions on What the Franchisee May Sell

This Item outlines what Pollo Campero owners are and are not allowed to sell. Franchisees are restricted to approved products and services.

Item 17: Renewal, Termination, Transfer and Dispute Resolution

This section provides more information regarding the length of the agreement (10 years from the restaurant’s opening date) and steps franchisees might take should they choose to exit early.

Item 18: Public Figures

Pollo Campero does not use any public figures to promote its franchise.

Item 19: Financial Performance Representations

Item 19 is a favorite of many prospective franchisees. Meant to provide insight into the potential financial performance of the franchise, this section generally reports on average revenues throughout a franchise system. 

While franchisors include accurate representation in the Item 19, this data does not guarantee that any franchisee will sell a certain amount.

In the 2024 FDD, Pollo Campero reports median annual gross sales of $2,978,747 for FY 2023. The top-performing restaurant exceeded $5.2 million, while the lowest-performing restaurant reported around $1.2 million in gross sales.

Item 20: Outlets and Franchisee Information

This Item shows how many franchised and company-owned outlets there are in the system. In 2023, Pollo Campero grew from 85 to 92 total restaurants in the U.S. 

Prospective franchisees can also review unit count per state in Item 20.

Item 21: Financial Statements

This Item provides potential owners an opportunity to review unaudited balance sheets and other financial statements.

Item 22: Contracts

Item 22 offers sample contracts for prospective franchisees to review.

Item 23: Receipts

Both the franchisor and franchisee FDD receipts are included here.

The FDD is a vital part of the research process for prospective franchisees. Though the document can be long and dense, it is a treasure trove of information. As you review, use the FDD to guide your assessment of the franchise opportunity and how it aligns with your priorities, lifestyle and goals.

To find out more information on costs to buy this franchise, please visit http://1851franchise.com/pollocampero/info.