Skip to main content
✦Prime Rate:7.00%✦Fed Funds:3.75%✦5 Yr Treasury:4.78%↓✦10 Yr Treasury:4.96%↓✦30 Yr Treasury:5.29%↓✦30 Yr Mortgage:7.32%·Updated Oct 22, 2026✦Prime Rate:7.00%✦Fed Funds:3.75%✦5 Yr Treasury:4.78%↓✦10 Yr Treasury:4.96%↓✦30 Yr Treasury:5.29%↓✦30 Yr Mortgage:7.32%·Updated Oct 22, 2026
Rates
El Pollo Loco

El Pollo Loco

The total investment to open a El Pollo Loco franchise ranges from $793,750 to $793,750. The initial franchise fee is $40,000. Ongoing royalties are 5% plus a 5% advertising fee.

What is the El Pollo Loco franchise?

El Pollo Loco, Inc. began in 1975 when Juan Francisco "Pancho" Ochoa opened a roadside chicken stand in Guasave, Sinaloa, Mexico. He introduced his mother’s traditional recipe for citrus marinated, flame grilled chicken, and the concept expanded quickly. Within four years, Ochoa had grown the business to 85 restaurants across 20 northern Mexican cities. The brand entered the United States on December 8, 1980, with its first location in Los Angeles, California. El Pollo Loco now operates nearly 500 restaurants across seven U.S. states, including 498 U.S. restaurants as of Q3 2025. Franchisees own most of the system, with 323 franchised units concentrated primarily in the Western U.S. The current Franchise Disclosure Document identifies 50 total units available for franchising, all of them franchised units. El Pollo Loco Holdings, Inc. is headquartered in Costa Mesa, California, and trades publicly on NASDAQ under the ticker LOCO. That ownership structure gives the brand a long operating history and a formal corporate platform within the fast casual restaurant market.

The Limited Service Restaurants category includes the fast casual segment where El Pollo Loco operates. In recent years, limited service dining has grown faster than full service restaurants as consumers adjust to changing schedules and economic conditions. Health consciousness is one demand driver, and flame grilled chicken may be viewed as an alternative to traditional fried food. Consumer interest in ethnic and authentic flavors, including Mexican cuisine, also supports the category. El Pollo Loco’s origins in Guasave, Sinaloa, Mexico, connect its menu to that culinary tradition. Urbanization, demand for quick meals, digital ordering, and delivery platforms continue to affect how customers choose and purchase food. Franchise investors are drawn to the category because restaurant models can be scaled, operating procedures can be repeated, and the initial capital requirement may be lower than that of a full service restaurant. Competition remains broad, while the fast casual chicken segment includes established operators. El Pollo Loco’s distinction comes from its citrus marinated, flame grilled preparation and long standing brand recognition. Inflation affecting food and labor costs makes operating efficiency and supply chain management important, and a mature corporate system may use its scale to support franchise operations.

The initial El Pollo Loco franchise fee is $5,000. That is below the $25,000 to $50,000 initial fees often seen among established fast casual concepts. Total investment ranges from $134,195 to $2.61 million. The spread reflects the selected restaurant format and location, including the difference between converting an existing space and developing a larger ground up restaurant. Real estate and development costs also vary across U.S. markets. The range may therefore suit different development plans, although a full scale restaurant can require a significant capital commitment. El Pollo Loco Holdings, Inc. is publicly traded on NASDAQ under the symbol LOCO, providing the franchise system with corporate backing and a formal operating structure. Public ownership can support infrastructure, resources, and a defined strategic framework when compared with a privately held franchisor. Specific ongoing fees, including royalty rates and advertising fund contributions, are not detailed in the provided information. The $5,000 franchise fee creates a relatively accessible entry point, while the total investment can reach a premium level depending on the development model.

An El Pollo Loco franchisee is responsible for delivering the brand’s citrus marinated, flame grilled chicken with consistency, quality, and speed. The recipe originated with Juan Francisco "Pancho" Ochoa’s mother in 1975. Daily work includes managing kitchen employees who prepare the chicken, overseeing front of house service, taking orders efficiently, supporting customer satisfaction, and maintaining a clean and inviting restaurant. Specific staffing requirements are not provided, but a typical fast casual operation may include a general manager, assistant managers, and hourly employees handling preparation, cooking, and service. Labor management is therefore a central operating responsibility and affects restaurant costs. The investment range of $134,195 to $2.61 million suggests that the system may accommodate different formats. Possible examples include inline locations in shopping centers, freestanding restaurants with drive thrus, and smaller footprint units, although the available information does not specify the format types. El Pollo Loco Holdings, Inc. is based in Costa Mesa, California and provides the corporate structure for ongoing support. Its leadership team includes CEO Liz Williams, Chief Financial Officer Ira Fils, Chief Legal Officer and Chief People Officer Jason Weintraub, appointed October 2025, and Chief Development Officer Tim Welsh, appointed June 2024. These roles support development, strategy, and consistency across the nearly 500 unit system. Maria Hollandsworth served as interim CEO and was appointed President and COO before her anticipated departure on December 26, 2025, reflecting a period of leadership transition within the public company.

Public SEC filings from El Pollo Loco Holdings, Inc. provide information about the overall company and system, including company owned and franchised units. The brand’s history offers several reference points for its development. It established 85 restaurants in Mexico within four years of its 1975 founding, then opened an average of four new restaurants per year in Los Angeles for three years after the 1980 U.S. debut. The 400th location opened in Chelsea, Massachusetts, in May 2008. More recently, the company added three El Pollo Loco locations in 2024. Since 2021, it has opened an average of six locations per year, while the average over the past decade has been eight new locations annually. These figures indicate a slower and more measured pace than the early expansion period. The current system of nearly 500 restaurants across seven U.S. states, including 498 U.S. restaurants as of Q3 2025, represents an established operating base. Its publicly traded status and broad system provide context for evaluating the company’s overall financial position and its continued activity in the fast casual market.

El Pollo Loco has followed several different growth phases since its U.S. debut in Los Angeles in December 1980. During the first three years after that opening, the company added an average of four restaurants annually. By 2001, the system included nearly 140 company owned restaurants and approximately 180 franchisee controlled units. In May 2008, the 400th location opened in Chelsea, Massachusetts. Expansion has been more conservative in recent years, with three new locations added in 2024, an average of six new units annually since 2021, and an average of eight locations opened each year over the past decade. The current system includes nearly 500 restaurants across seven U.S. states and 498 U.S. restaurants as of Q3 2025. The company changed its name to El Pollo Loco Holdings, Inc. in April 2014 and became publicly traded on NASDAQ under LOCO in July 2014. Current leadership includes Liz Williams as CEO, Ira Fils as CFO, Jason Weintraub as Chief Legal Officer and Chief People Officer beginning in October 2025, and Tim Welsh as Chief Development Officer beginning in June 2024. The brand’s main point of distinction is its flame grilled chicken, prepared with Juan Francisco "Pancho" Ochoa’s mother’s traditional citrus marinated recipe from 1975. That product has supported recognition and customer loyalty since the 1980 U.S. entry. The brand remains positioned in fast casual dining, where customers continue to seek convenience and meal options they may view as healthier.

A likely El Pollo Loco franchise candidate has business judgment, management experience, and familiarity with restaurants or retail services. Running a fast casual restaurant requires attention to employees, food preparation, service, customer experience, and the brand’s specific culinary process. The available information does not set out specific experience requirements, but established franchisors often favor candidates with multi unit ownership or management backgrounds. El Pollo Loco operates primarily across seven U.S. states, and its 323 franchised units are concentrated mainly in the Western U.S. Those markets represent the system’s most established regional presence. The Costa Mesa, California headquarters also reflects the company’s strong connection to the Western U.S. Specific territories and geographic expansion plans for the 50 franchised units identified in the FDD are not provided. Buyers should expect to evaluate markets where El Pollo Loco already operates or where the company has identified growth potential. The franchise agreement term length, renewal terms, transfer conditions, and resale provisions are also not specified. The system has continued through several ownership changes, including Denny’s, Inc. acquiring the U.S. operations in 1983, followed by TW Services, Flagstar Corporation, Advantica Restaurant Group, American Securities Capital Partners, and Trimaran Capital Partners. The company became El Pollo Loco Holdings, Inc. in 2014. That history provides context for a franchise system that has continued through changes in ownership and corporate structure.

El Pollo Loco combines a brand history that began in 1975 with a signature flame grilled chicken product and a publicly traded parent company, El Pollo Loco Holdings, Inc. under NASDAQ: LOCO. The franchise fee is $5,000, and the Loan Activity Score is 53, classified as Moderate. The system includes nearly 500 restaurants across seven U.S. states, including 323 franchised units as of Q3 2025. Consumer demand for convenience, perceived healthier choices, and authentic flavors gives the brand a place within the broader fast casual restaurant category. For a buyer, the main financial questions include the selected development format, the local real estate market, the total investment range of $134,195 to $2.61 million, and the operating requirements of a flame grilled chicken restaurant. PeerSense provides independent franchise intelligence that includes SBA lending history, the Loan Activity Score, location maps with Google ratings, FDD financial data, and side by side comparison tools. Buyers can use the complete El Pollo Loco franchise profile on PeerSense when reviewing the opportunity and comparing it with other franchise systems. PeerSense is a commercial capital advisory firm that introduces franchise buyers to SBA and conventional lenders, rather than serving as a lender.

Loan Activity Score

53/100

SBA Default Rate

4.9%

Active Lenders

32

Franchisees account for 325 of El Pollo Loco's 498 locations. Public SBA loan records show 32 lenders made 61 loans to franchisees of El Pollo Loco. PeerSense calculates El Pollo Loco's score as 53 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2024 Franchise Disclosure Document.

Franchising since 1975 · 498 locations

Investment

$793,750 to $793,750

Franchise Fee

$40,000

Total Units

498

325 franchised

Loan Activity Score
High
53
SBA Lending
25
Lender Quality
9
Transparency
9
Reach
7
Momentum
3

Proprietary PeerSense metric

Moderate
Capital Sources
32SBA lenders

Distinct lenders in public SBA records for El Pollo Loco

61

Total SBA loans

$634K

Average loan size

Source: public SBA 7(a) and 504 loan records through December 31, 2025

Referral fee at closing

SBA Lending Activity for El Pollo Loco

Loan Activity Score Breakdown

Established (25 to 99 loans)

High Confidence
53out of 100
Moderate
Market Momentum3/35

Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.

Loan Safety25/25

Blended default rate (recent + all time) compared to NAICS sector peers.

Lender Confidence9/15

Quality lenders actively backing this brand, with penalty for lender pullback.

Transparency9/15

FDD availability, Item 19 disclosure, and overall data completeness.

Footprint7/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

4.9%

vs 10.3% peer avg

SBA Loans

61

Total Volume

$38.7M

Active Lenders

32

5 selective

States

9

vs. SBA Sector Average

+5.4%lower default rate

SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors

Key Highlights

Low SBA default rate (4.9%)
Item 19 financial data disclosed
498 locations nationwide

Data Insights

Key performance metrics for El Pollo Loco based on SBA lending data

SBA Default Rate

4.9%

5.4% below peer avg

SBA Loan Volume

61 loans

Across 32 lenders

Lender Diversity

32 lenders

Avg 1.9 loans per lender

Investment Tier

Premium investment

$793,750 to $793,750 total

Payment Estimator

Loan Amount$635K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$8,217

Principal & Interest only

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Locations

El Pollo Loco, unit breakdown

Total Units
N/A
Franchisee Owned
n/a
System Owned
n/a
Closed
n/a

Explore Funding for El Pollo Loco

Our business financing consultants help connect you with the right lending partners. Referral fee paid at closing.

Optional: checking the consent box lets us call or text you about your funding. You can still submit without it.

Referral fee at closing

Or get an instant analysis

Scan Your Deal Instantly

4 FDDs Available for El Pollo Loco

Review franchise fees, investment ranges, royalties, Item 19 financial data, and year over year trends. Request complimentary access through your PeerSense funding advisor.

El Pollo Loco

Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

  • PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
  • Edward L. Freeman founded PeerSense in January 2020.
  • He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
  • His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
  • In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed LinkedIn profileAbout Edward Freeman