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Kentucky Fried Chicken (KFC) Franchise For Sale - Restaurant
Kentucky Fried Chicken (KFC) Franchise Opportunities
About KFC franchise
When one thinks of the best restaurant to get crispy and freshly-made chicken, the mind instantly goes to KFC. It is one of the giants in the fast food industry. And, the brand’s logo with Colonel Sanders on a bucket is known to almost every person in the world. Ambitious and enthusiastic entrepreneurs should consider filling a KFC franchise application.
KFC franchise is a great way to enter a restaurant and fast food industry with a lot of help from the franchisor. Read extra information on the franchise and its cost below, and submit an application if you are interested.
How to open a Kentucky Fried Chicken franchise?
- Ensure you have adequate capitalization. In order to open a KFC franchise, you must have a net worth of more than $1,500,000.
- Appreciate the investment required for a restaurant franchise. You will need to consider building and real estate costs, the cost of equipment and signs, the costs of licenses and permits, the cost of uniforms, the cost of insurance, etc.
- Evaluate your prior experience and strengths. You should thoroughly evaluate your prior business experience before applying to become a KFC franchise owner.
- Assess market availability. You will want to look at the market availability for KFC franchises and see if there are available markets in your location of interest before proceeding with the franchising application.
- Submit your application. Your application will be reviewed by the KFC franchise team. You will be emailed a confirmation receipt upon reception of your online application, where we will additionally provide the contact details of the franchise owner.
- Receive approval & opening your KFC franchise. You will receive franchise approval once your financial and background checks are completed. Approval will only be given to candidates who meet all the requirements of franchise owners.
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How much does KFC franchise cost?
KFC has the franchise fee of up to $45,000, with total initial investment range of $1,442,550 to $2,771,500.
Initial investments: $1,442,550 - $2,771,500 Net-worth Requirement: $1,500,000 Liquid Cash Requirement: $750,000
| Name of Fee | Low | High |
|---|---|---|
| Application & Background Check Fee (per person) | $300 | $500 |
| Deposit Fee | $20,000 | $20,000 |
| Option Fee | $25,000 | $25,000 |
| Training Expenses | $7,000 | $10,000 |
| Permits, Licenses, and Security Deposits | $50,000 | $100,000 |
| Real Property | $400,000 | $1,100,000 |
| Building & Site Costs | $534,000 | $930,000 |
| Equipment, Signage, and Décor, POS & MERIT | $329,000 | $476,000 |
| Start-up Inventory | $10,000 | $10,000 |
| Grand Opening Expense | $5,000 | $5,000 |
| Insurance | $7,250 | $10,050 |
| Miscellaneous Costs | $5,000 | $10,000 |
| Additional Funds | $50,000 | $75,000 |
Ongoing Fees
Initial Franchise Fee: $45,000 Ongoing Royalty Fee: 5% Ad Royalty Fee: $5%
Are you interested in starting KFC Franchise in the USA, India, Indonesia, Canada, Pakistan, Malaysia or another country?
We provide estimated franchise costs for some countries: - In the United States, the total investment to start the KFC Restaurant is around $1,442,550 to $2,771,500. - In Indian currency, the investment comes around Rs 60 lakhs to Rs 1.2 crores. - In Indonesian currency, the investment comes around Rp 20,480 million to Rp 39,350 million. - In Canadian currency, the investment comes around CAN$1,912,735 to CAN$3,674,845. - In Pakistani currency, the investment comes around PKR 225,727,572 to PKR 433,679,226. - In Malaysian currency, the investment comes around RM 6,044,291 to RM 11,612,598.
Support Options
On-The-Job Training: 6 weeks Classroom Training: 2 days
KFC Franchise Info: www.kfcfranchise.com
Other fees for KFC Franchise
| Type of Fee | Amount |
|---|---|
| Royalty | 4%-5% of Gross Revenue or a minimum of $1,260, whichever is greater, per month (minimum fee subject to adjustment based upon the Consumer Price Index) |
| National Co-op | 4.5% of gross revenues |
| Renewal, if applicable | $8,400 (subject to adjustment based upon the Consumer Price Index) |
| Transfer to an Existing KFC LLC Franchisee | $4,200 for the first Outlet and $2,100 for each additional Outlet in the same transaction |
| Transfer to a New KFC LLC Franchisee | $8,400 for the first Outlet and $4,200 for each additional Outlet in the same transaction |
| Audit | Entire cost of audit, including expenses of auditing personnel |
| Additional Refresh/Training | $3,000 |
| Costs, expenses and attorneys' fees | Will vary |
| Indemnification | Will vary |
| Late royalty payments | 1.5% per month |
| Restaurant Operations Compliance Check – comprised of two categories: (1) Food Safety Compliance Check and (2) Brand Standards Compliance Check re-evaluation | Up to $282.50 per re-evaluation |
| Support Services and Software Maintenance for KFCLLC's MERIT System | $173.15 per unit/per month |
| One System Fund Fee | $180 per Outlet/per month (plus applicable tax and shipping) (reoccurring payments) |
- Starting investments from: $1,442,550
- Company type: Restaurant
- Company foundation year 1930
- Year of launching the franchise 1952
- Franchise enterprises (2017): 20,826
- Corporate Address: 1441 Gardiner Ln. Louisville, KY 40213, USA
- Units in USA: 4230+
- Units in The United Kingdom: 840+
- Units in India: 370+
- Units in Indonesia: 465+
- Units in Australia: 650+
- Units in New Zealand: 100+
- Units in Japan: 1180+
- Units in Thailand: 531+
- Units in Mexico: 320+
- Units in Egypt: 156+
- Units in Pakistan: 80+
- Units in Saudi Arabia: 230+
- Units in Philippines: 237+
- Units in Kenya: 17+
- Units in Ghana: 15+
- Units in Malawi: 2+
- Units in Nigeria: 27+
- Units in Namibia: 18+
- Units in South Africa: 884+
- Units in Ireland: 40+
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KFC Franchise
When it comes to fast-food franchises, few are as popular as KFC. This Louisville, Kentucky-based franchise is the world's most popular chain restaurant focusing on chicken, potatoes and all-American food. It stems from the original "secret recipe" that flavors Colonel Harland Sanders’ chicken, complete with 11 distinct herbs and spices.
If you want to start a restaurant business without having to fight to capture part of the market, you might want to start a KFC franchise.
KFC franchise could be a great business opportunity, whether you are more of a general manager or hands-on restaurant operator willing to be "in the trenches" with your workers serving customers delicious meals.
While starting a KFC franchise could be a great idea, there are some key things you should consider before signing on the dotted line. Read on to learn more.
Why should you start a Kentucky Fried Chicken franchise?
Why jump on a KFC franchise opportunity? There are lots of reasons you might consider this business opportunity.
For example, about 185 million people see a KFC commercial once per week, which is more than half of the U.S. population. The KFC restaurant chain serves over 12 million customers daily across 115 countries and territories.
That adds up to over 17,000 restaurants around the world. Simply put, all of this adds to brand recognition through the Yum! Brands, Inc. conglomerate, which also owns Taco Bell and Pizza Hut.
When you sign on as a KFC franchisee, you’ll get immediate access to this brand recognition and can start running a successful restaurant immediately. KFC’s famous chicken recipe is still proprietary and secret, so what you offer your customers is something they can’t get anywhere else.
In addition, KFC has expanded its menu over the last several years. It doesn’t just offer fried chicken buckets.
It also offers chicken wings, chicken sandwiches and a variety of homestyle sides. This dedication to keeping its menu fresh has helped KFC stay market relevant for decades.
That’s not all, either. When you sign on as a KFC franchisee, you can choose to own and operate two different types of restaurants:
- Traditional restaurants are what you expect — standard KFC restaurants that offer full menus and seating.
- Nontraditional restaurants. Also called express outlets, these are smaller than traditional KFC outlets and offer limited menus. They usually operate at “captive” locations, like transport terminals, colleges, venues in business locations and malls.
Depending on your needs, either type of restaurant could be perfect for your business ambitions.
However, the monetary investment needed to start a nontraditional restaurant is notably cheaper than the upfront cash you need to start a traditional restaurant. That’s because it requires less real estate and fewer liquid assets/cash requirements.
This translates to accessibility. As a KFC franchise business owner, you have multiple options with which to start your entrepreneurial endeavors.
Is absentee ownership possible for KFC franchisees?
One of the limitations that come with KFC franchising is the lack of absentee ownership. Simply put, you must be on the floor running your restaurant in person should you choose this business route.
KFC is looking for franchisees with some successful business ownership experience already, although it will sign on new franchisees with the right drive and commitment.
You also need to have enough time to commit to managing your restaurant “on the floor” — expect to become a master of everything that KFC does it offers to its customers.
That, in turn, will affect your residence and home distance options. You'll need to be near your Kentucky Fried Chicken restaurant franchise so you can drive to the restaurant whenever you are on the clock.
Because of this, becoming a KFC franchise owner isn’t ideal for business owners who want part-time work or want to focus on other business opportunities. You’ll need to focus all your efforts on KFC to succeed in this business.
Related: Fast-Food Franchises Get Fresh
What resources and support does KFC offer franchisees?
Once your Franchise Agreement has been signed, KFC doesn’t simply back away and leave it all up to you. Instead, feel confident knowing that new franchisees get access to many support resources from corporate.
Let's start with a breakdown of marketing support. Marketing your KFC restaurant, especially in the run-up to opening day, can be tricky.
That's why KFC provides national and social media marketing support, helping you craft effective marketing campaigns and leverage advertisement templates to maximize the attractiveness of your new restaurant. This even extends to search engine optimization or SEO, which will help your local restaurant website attract local diners.
Then there’s the plethora of other support resources and programs KFC brings to the table.
For instance, you can attend meetings and conventions with fellow business owners and franchisees. You can also attend purchasing co-ops to get new supplies and resources on the cheap, bettering your bottom line.
Need help with training? KFC corporate is there to assist by providing field operations support. KFC will help you train new employees as you bring them onto your team.
It also provides training and support for safety and security procedures, which can be invaluable if you open a new restaurant downtown or in a metropolitan area.
All franchisees can access proprietary software and the franchisee intranet platform, helping you coordinate your business activities.
The toll-free line and online support resources will ensure that you never feel alone and that you always have a way to contact corporate if you experience a significant issue.
Related: More Fast-Food Franchises Go Lean
How much does starting a KFC franchise cost?
Starting a KFC franchise will take some money on your part upfront. First, you’ll need to pay an initial franchise fee of $45,000, as specified in the Franchise Disclosure Document (FDD).
After that, you’ll need to make an initial investment of anywhere from $1.4 million to $3.2 million. The exact franchise investment you’ll need to make depends heavily on location, expected profitability and the size of your restaurant.
To ensure that you have the cash for these investments, KFC requires new franchisees to have net worths of $1.5 million, plus cash reserves of $750,000.
That's a lot of initial money to get together. Remember that you'll also need to pay a royalty fee of between 4% and 5% once your business opens. The ad royalty fee of 5% can’t be forgotten, either.
Should you have enough money to pay for all this, you can sign a term of agreement that lasts 20 years. You can then renew the agreement term if you like your KFC franchise. If your restaurant has been successful thus far, you may be able to secure better terms, like lower royalty fees.
Does KFC offer financial assistance?
Fortunately, KFC doesn’t expect all new franchisees to have all of that money saved up. That’s why it has various business relationships with lenders and other third-party financing sources.
You can contact those sources to get financing for franchise fees, startup costs, equipment and inventory.
These business loans will eat into your bottom line for at least several years but will let you start a KFC franchise without being independently wealthy beforehand.
Related: Just How Much Does it Cost to Own a Fast-Food Franchise ?
What training is required to open a KFC franchise?
Most franchisors have comprehensive training programs for new franchisees, and KFC is no different.
When you sign on as a new franchisee, you must complete a detailed training program that includes 1.5 days of classroom training and another 10 weeks of on-the-job training.
In a nutshell, the training program involves spending:
- One week in an orientation program.
- Two weeks with online training (the hours add up to about 1 ½ days).
- After several weeks in a certified restaurant, you can receive hands-on training and know what to expect when your restaurant is up and running.
On the plus side, KFC foots the bill for all the travel and lodging expenses you and your management team will have.
By the end of the training, you'll know how to run your KFC restaurant profitably, train new team members and create the world-famous chicken that the KFC restaurant brand is famous for.
Related: Why Franchising is the Future of the Healthy- Fast-Food Movement
Start a KFC franchise today
Starting a KFC franchise could be the best decision for your business career. Consider signing up on the KFC website today.
Check out Entrepreneur’s other guides and articles for more information about KFC and other franchise opportunities .
Company Overview
| Related Categories | |
|---|---|
| Founded | 1930 |
| Parent Company | Yum! Brands Inc. |
| Leadership | Tarun Lal, President |
| Corporate Address | 1900 Colonel Sanders Ln. Louisville, KY 40213 |
| Social | , , , , , |
Business Overview
| 1952 (72 years) | |
| # of employees at HQ | 400 |
|---|---|
| Where seeking | This company is offering new franchises throughout the US. This company is offering new franchises worldwide. |
| # of Units | 28,475 (as of 2023) |
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Information for Franchisees
Here's what you need to know if you're interested in opening a KFC franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
| $45,000 | |
| Initial Investment The total amount necessary to begin operation of the franchise The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high. | $1,852,825 - $3,771,550 |
|---|---|
| Net Worth Requirement The minimum net worth you must have in order to qualify to become a franchisee of this company Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt. | $1,500,000 |
| Cash Requirement The minimum liquid capital you must have available in order to qualify to become a franchisee of this company. | $750,000 |
| Royalty Fee A ongoing fee paid to the franchisor on a regular basis. Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee. | 4%-5% |
| Ad Royalty Fee An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee. | 5% |
| Term of Agreement The length of time your franchise agreement will last. Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee. | 20 years |
| Is franchise term renewable? | Yes |
Financing Options
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
| KFC has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll |
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
| 10 weeks | |
| Classroom Training | 1.5 days |
|---|---|
| Ongoing Support | Purchasing Co-ops Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
| Marketing Support | National Media Social Media SEO Loyalty Program/App |
Additional details about running this franchise.
| No | |
| Can this franchise be run from home/mobile unit? The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse. | No |
|---|---|
| Can this franchise be run part time? This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time. | No |
| Are exclusive territories available? An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD. | No |
Franchise 500 Ranking History
Compare where KFC landed on this year's Franchise 500 Ranking versus previous years.
Additional Rankings
Curious to know where KFC ranked on other franchise lists? Find out below.
Ranked #12 in 2024
Franchise 500
Ranked #1 in 2024
Top Global Franchises
Ranked #3 in Chicken in 2022
Top Food Franchises
Ranked #5 in 2024
Top Brands for Multi-Unit Owners
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Franchise Business Plan – KFC
In 2017, Yum! Brands was named to the Dow Jones Sustainability North America Index. The company’s restaurant brands KFC, Pizza Hut, and Taco Bell are the global leaders in the fast-food industry. Yum! Brands have more than 45,000 company-owned, franchised, and licensed restaurants including 4,055 franchised KFC restaurants. About 98.7% of the KFC locations operate under franchise or license agreements . KFC is one of the world’s most popular chicken franchises. Around four million people visit a KFC restaurant in the U.S. every day and around 1.8 billion pieces of chicken are sold each year. Joorney Business Plans Writers have extensive experience in working with investors looking to open a KFC restaurant .
When drafting a Franchise Business Plan for a KFC restaurant, there are several issues to address.
Initial Investment
The minimum financial requirement to open a KFC restaurant in the U.S. is $1.5 million net worth and $750,000 in liquid assets. The start-up expenses include: construction costs (approx. $1,036,000), initial franchise fee ($45,000), development services fee (approx. $17,000), real estate (approx. $700,000), grand opening expense ($5,000), start-up inventory ($10,000), training expenses (approx. $6,950), and miscellaneous operating costs (approx. $7,000). Joorney Business Plans has experience in creating long-term financial projections for KFC restaurants and understands the specifics pertaining to the initial investment requirements.
The average equipment expenses for a KFC restaurant range from $329,000 to $476,000. KFC franchisees must install multiple items including restaurant equipment, furniture, decor items, counters, cash registers, the KFC merit system, small wares, and indoor and outdoor signage. Joorney Business Plans will help franchisees correctly assess and depreciate the value of the equipment in the financial projections.
KFC requires three key holders of a restaurant to attend and complete the KFC’s training program before a restaurant’s opening. Keyholders of the restaurant can include the franchisee, an above store leader, restaurant general manager, or assistant manager. Training ranges from eight to ten weeks and is conducted centrally in Louisville, KY, and in certified training stores . The franchisee is responsible for all costs incurred including travel and lodging of the management team. Joorney Business Plan Writers have experience describing and developing personnel plans and linking the proposed individuals’ training to their designated roles.
Site Selection
Franchisees select the site for their KFC restaurant. Although KFC must approve the proposed site, the approval does not imply that a KFC unit will be successfully operated at the proposed site or that any particular volume of sales can be expected from the proposed location, but only that the site meets the minimum standards set by KFC. The factors KFC considers in approving proposed sites include general location, traffic patterns, market size, visibility, demographics, and competitive locations. Joorney Business Plans assists clients in developing in-depth local market analyses with the expected local demographic and economic trends.
Becoming a part of one of the few brands in America that can boast a rich, decades-long history of success and innovation, presents a great opportunity for all new KFC franchisees.
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KFC Franchise FDD, Profits, Costs & Fees (2024)
- September 13, 2024
KFC , also known as Kentucky Fried Chicken, is a global fast-food franchise famous for its crispy fried chicken. Founded by Colonel Harland Sanders in 1952 in Corbin, Kentucky, KFC’s signature recipe of 11 herbs and spices quickly gained popularity.
Now headquartered in Louisville, Kentucky, KFC operates under Yum! Brands, Inc. The franchise began expanding in 1952, growing into a global brand that serves millions daily. Its menu features the iconic Original Recipe chicken, along with sandwiches, sides, and other chicken products.
The franchise sets itself apart with its secret recipe and unique cooking method, maintaining a strong brand identity focused on taste and quality.
KFC Franchise Stats
Kfc franchise initial investment.
It costs on average between $1,053,000 – $3,772,000 to start a KFC franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses . The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property. KFC offers 2 types of franchises:
| Type of KFC Outlet | Initial Investment Range |
|---|---|
| Reopened or Remodeled Former KFC Outlet | $1,052,825 to $2,521,550 |
| Newly Constructed KFC Outlet | $1,852,825 to $3,771,550 |
We are summarizing below the main costs associated with opening a Newly Constructed KFC franchised restaurant. For more information on the costs required to start a KFC franchise, refer to the Franchise Disclosure Document ( Item 7 ).
Newly Constructed KFC Outlet:
| Amount | |
|---|---|
| Background Check Fee | $575 to $2,500 per person |
| Deposit Fee | $20,000 |
| Option Fee | $25,000 |
| Training Expenses | $5,000 to $8,000 |
| Permits, Licenses & Security Deposits | $50,000 to $100,000 |
| Real Property | $300,000 to $1,000,000 |
| Building & Site Costs | $200,000 to $650,000 |
| Equipment, Signage, Décor, POS & Required Technology | $375,000 to $606,000 |
| Start-up Inventory | $10,000 |
| Grand Opening Expense | $5,000 |
| Insurance | $7,250 to $10,050 |
| Miscellaneous Costs | $5,000 to $10,000 |
| Additional Funds | $50,000 to $75,000 |
| Total (convert or remodel brand) | $1,053,000 to $2,522,000 |
| Total (to construct new Outlets) | $1,853,000 to $3,772,000 |
KFC Franchise Average Revenue (AUV)
A KFC franchised restaurant makes on average $1,603,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,662,000 yearly revenue for similar restaurant chicken franchises. Below are 10 KFC competitors as a comparison:
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KFC Franchise Disclosure Document
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Frequently Asked Questions
How many kfc locations are there.
As of the latest data, KFC has around 3,715 franchised locations in the United States, while there are only 46 company-owned stores . Globally, the brand operates over 30,000 locations, with the vast majority being franchised.
What is the total investment required to open a KFC franchise?
The total investment required to open a KFC franchise ranges from $1,852,825 to $3,771,550 for the Newly Constructed KFC Outlet.
What are the ongoing fees for a KFC franchise?
For a KFC franchise, ongoing fees include a royalty fee of 5% of gross sales. Additionally, franchisees are required to contribute to marketing efforts through an advertising fee , which is typically set at 4.5% of gross sales. These fees help support national and regional advertising campaigns, as well as other promotional activities, ensuring the continued growth and visibility of the KFC brand.
What are the financial requirements to become a KFC franchisee?
To become a KFC franchisee, the financial requirements include having a minimum net worth of $1.5 million and liquid assets of at least $750,000 . These financial thresholds ensure that potential franchisees have the resources to invest in opening and operating a KFC franchise, which involves significant initial and ongoing costs.
How much can a KFC franchise owner expect to earn?
The average gross sales for a KFC franchise are approximately $1.6 million per location. Assuming a 15% operating profit margin, $1.6 million yearly revenue can result in $240,000 EBITDA annually.
Who owns KFC?
KFC is owned by Yum! Brands, Inc. , a global fast-food corporation that also owns other well-known brands like Taco Bell and Pizza Hut. Yum! Brands was formed in 1997 as a spin-off from PepsiCo, and since then, it has become one of the largest restaurant companies in the world. KFC, originally founded by Colonel Harland Sanders in 1952, became part of the Yum! Brands portfolio during its expansion and growth as a global franchise.
Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
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Table of Contents:
KFC, originally known as Kentucky Fried Chicken, is a globally recognized fast-food franchise founded by Colonel Harland Sanders in 1952. Colonel Sanders, with his secret blend of 11 herbs and spices, revolutionized the fried chicken industry. KFC is a major player in the fast-food sector, renowned for its unique recipes and quick-service model, making it a go-to choice for chicken lovers around the world. The franchise’s significance lies in its iconic branding, consistent quality, and ability to adapt to market trends while maintaining its classic appeal.
KFC’s menu centers around its signature fried chicken, available in various forms such as Original Recipe, Extra Crispy, and Kentucky Grilled Chicken. Besides its legendary chicken, KFC offers a range of sides like mashed potatoes with gravy, coleslaw, biscuits, and corn on the cob. Their menu also includes sandwiches, wraps, and desserts, catering to diverse tastes and preferences. KFC’s core customer base comprises families, young adults, and fast-food enthusiasts seeking flavorful and convenient meals. The franchise appeals to a broad market, offering both dine-in and takeout options.
As of today, KFC boasts over 25,000 locations in more than 145 countries, serving millions of customers daily. This extensive global presence highlights KFC’s massive scale and ability to cater to diverse culinary preferences across different cultures. The brand’s ability to adapt its menu to local tastes while maintaining its core offerings has been key to its international success. In the U.S. alone, KFC has a strong footprint with thousands of outlets, making it a household name and a staple in the quick-service restaurant industry.
KFC provides robust support to its franchisees, ensuring they have the tools and knowledge needed for success. New franchisees undergo comprehensive training programs covering operational procedures, quality control, customer service, and marketing strategies. Ongoing support includes access to KFC’s supply chain, marketing resources, and continuous training updates. Franchisees benefit from KFC’s established brand reputation, extensive advertising campaigns, and a loyal customer base. The company’s commitment to innovation and franchisee success makes it an attractive investment opportunity for those looking to enter the fast-food industry.
KFC Franchise Insights
- KFC is a global icon given their secret recipe of 11 herbs and spices for their Original Recipe chicken has remained closely guarded since 1952, creating a unique and crave-worthy product that draws customers worldwide.
- Beyond their renowned fried chicken, KFC continuously introduces new menu items like the famous Double Down sandwich, showcasing their commitment to culinary innovation and satisfying diverse tastes.
- KFC has become ingrained in popular culture globally, adapting its menu to local tastes and traditions in over 145 countries, demonstrating its ability to expand globally while maintaining its core identity.
- Embracing technology and continuously innovating, KFC has launched campaigns and apps, like the KFC Colonel’s Club, offering exclusive deals and rewards to loyal customers, enhancing engagement and sales.
KFC Franchise Key Indicators
Growth YOY (%)
vs industry 0%
Total Investment
$1.05M-$3.77M
3-year Failure Rate
vs industry 11%
Sales-to-Investment ratio
How much does it cost to open a KFC franchise?
Opening a KFC franchise involves a substantial investment that varies depending on factors like restaurant location, size, and local market conditions. The initial investment generally falls between approximately $1.05 million and $3.77 million. This covers expenses such as franchise fees, equipment, leasehold improvements, initial inventory, and other startup costs. Understanding these financial aspects is crucial for prospective franchisees looking to evaluate the profitability and financial commitment required to run a successful KFC franchise.
Min & Max Investment
Opening a KFC franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a KFC below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Background Check Fee | $575 per person | $2,500 per person |
| Deposit Fee | $20,000 | $20,000 |
| Option Fee | $25,000 | $25,000 |
| Training Expenses | $5,000 | $8,000 |
| Permits, Licenses & Security Deposits | $50,000 | $100,000 |
| Real Property | $300,000 | $1,000,000 |
| Building & Site Costs | $200,000 | $1,900,000 |
| Equipment, Signage, Décor, POS & Required Technology | $375,000 | $606,000 |
| Start-up Inventory | $10,000 | $10,000 |
| Grand Opening Expense | $5,000 | $5,000 |
| Insurance | $7,250 | $10,050 |
| Miscellaneous Costs | $5,000 | $10,000 |
| Additional Funds | $50,000 | $75,000 |
| Total | $1,052,825 | $3,771,550 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a KFC franchise, the required capital involves both the initial investment costs and a net worth requirement set by KFC. Let’s take a closer look below:
- Initial Investment The total estimated initial investment ranges from $1.05 million and $3.77 million. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you qualify, you should be able to obtain financing for roughly 80% of the total investment costs.
- Liquid Assets Requirement KFC typically requires franchisees to have a minimum of $750,000 in non-borrowed personal resources (liquid assets). This ensures the franchisee has sufficient funds to cover unforeseen expenses and maintain financial stability during the startup phase.
- Net Worth Requirement KFC also assesses the overall net worth of the franchisee. While the specific net worth requirement can vary, it is generally recommended that franchisees have a net worth of at least $1,500,000. This includes the value of assets like real estate, investments, and personal property, minus any liabilities.
How Much Does a KFC Franchise Owner Make?
Calculating the salary of a KFC franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a KFC franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
KFC Revenue & Gross Sales
When it comes to KFC franchises, revenue performance is a key factor for potential success. On average, KFC franchises had a median gross sales of $1,321,309 in 2023, which is a 3% increase from 2022. These results highlight continued growth in gross sales with a quick service restaurant brand that has been around for decades. With smart management and operational efficiency, franchisees can capitalize on the brand’s legacy to drive profitability and achieve financial success.
Which key factors impact the average revenue performance of KFC franchisees?
Several factors contributed to the growth of U.S. KFC franchisee median gross sales revenue from 2022 to 2023. Market stability and a recovering economy increased consumer spending, benefiting the fast-food sector. Franchisee confidence was bolstered by KFC’s effective strategic initiatives, such as menu innovations and limited time offers, which kept the menu exciting and attracted more customers. The expansion of digital ordering channels, including mobile apps and third-party delivery services, made purchasing more convenient. Additionally, robust marketing campaigns and social media engagement-maintained brand visibility and drew a broader audience. Operational efficiencies, like streamlined kitchen processes and enhanced customer service, further improved the customer experience, contributing to higher sales. These factors combined to drive significant revenue growth for KFC franchisees.
KFC Franchise Operational Costs
When opening a KFC franchise, it’s crucial to account for the key primary ongoing operational costs to ensure smooth and profitable operations. Here are the main costs to consider:
- Food and Beverage The cost of purchasing chicken, sides, drinks, and other menu items.
- Labor Salaries and wages for employees, including benefits and payroll taxes.
- Rent Lease payments for the restaurant location.
- Utilities Costs for electricity, water, gas, and other essential services.
- Maintenance Regular upkeep of kitchen equipment, dining areas, and facilities.
- Supplies Purchase of packaging materials, cleaning supplies, and other necessary items.
- Marketing Local advertising, promotions, and contributions to KFC’s national marketing fund.
- Royalty Fees Ongoing payments to KFC for the use of their brand and system, typically a percentage of sales.
- Insurance Coverage for property, liability, workers’ compensation, and other risks.
- Technology Expenses for point-of-sale systems, software, and other technology solutions.
Understanding these costs and planning accordingly will help you manage your KFC franchise effectively and maintain profitability.
KFC Franchise Fees
Owning a KFC franchise is different from owning an independent, non-franchised business. All franchises tend to charge ongoing fees that franchisees are required to pay to operate. Some of the fees that KFC requires their franchisees to pay are listed below:
- Royalty Fee This is a monthly fee paid to KFC, typically calculated as a percentage of gross sales. For KFC, this fee is usually 4% to 5% of Gross Revenue or a minimum of $1,440 per month, whichever is greater.
- National Co-Op Fee Franchisees are required to contribute to KFC’s national advertising fund. This contribution is generally 4.5% of Gross Revenue.
These ongoing fees are essential to consider when planning the financial aspects of owning and operating a KFC franchise. They cover the costs of brand support, advertising, and ongoing operational assistance provided by KFC.
KFC Franchise Earnings
The earnings of a KFC franchise owner can vary significantly based on a variety of factors including location, sales volume, operational efficiency, and cost management. However, on average, KFC franchise owners can earn a substantial income.
KFC franchisees had a median gross sales of $1,321,309 in 2023. Based on this estimate, a KFC franchisee can expect to make roughly $198,000 in earnings per year, assuming the franchisee is an owner-operator. This means you can consider the salary of a KFC franchise owner to be roughly $198,000 before interest, taxes, depreciation, and amortization (EBITDA). This translates to a roughly 15% operating profit margin.
For semi-absentee franchisees, earnings will be lower due to the additional costs of hiring a manager. This reflects the reduced profitability when the owner is not directly managing the operations.
How to Open a KFC Franchise
Becoming a KFC franchisee involves several key steps to ensure you are well-prepared for a successful business venture. Here’s an outline of the process:
- Initial Inquiry Begin by submitting an inquiry through the Vetted Biz franchise website or directly contacting a franchise specialist. This step initiates the communication and provides you with detailed information about the franchise opportunity.
- Application Submission Complete and submit the franchise application form. This allows KFC to review your background, experience, and initial interest in becoming a franchisee.
- Financial Review After your application is reviewed, you’ll undergo a financial review to assess your financial capability. This includes evaluating your net worth, liquid assets, and overall financial health to ensure you meet the franchise requirements.
- Interview and Approval If you pass the financial review, you’ll be invited to an interview with the franchise team. This is an opportunity for both parties to discuss expectations, ask questions, and determine if there is a mutual fit. Upon approval, you’ll receive a Franchise Disclosure Document (FDD) outlining all the details.
- Franchise Agreement Review and sign the Franchise Agreement, formalizing your commitment to becoming a KFC franchisee. Pay the initial franchise fee as outlined in the agreement.
- Training Attend KFC’s comprehensive training program, which includes both classroom and hands-on training. This program covers operational procedures, marketing strategies, customer service, and management practices to prepare you for running the franchise effectively.
- Location Development Work with KFC to identify and secure a suitable location for your franchise. This involves site selection, lease negotiations, and adhering to KFC’s design and construction guidelines. KFC will assist with the development and setup of your restaurant.
- Pre-Opening Preparation Complete final preparations such as hiring staff, installing equipment, and setting up inventory. KFC will provide support to ensure all aspects of your restaurant are ready for a successful launch.
- Opening Support Launch your KFC franchise with the support of KFC’s opening team. This may include marketing assistance, operational guidance, and on-site support to ensure a smooth opening and initial operations.
- Ongoing Operations and Support Once your franchise is operational, continue to receive ongoing support from KFC. This includes regular visits from franchise consultants, access to marketing resources, and updates on operational best practices.
Following these steps will help you navigate the process of becoming a KFC franchisee, ensuring you are well-prepared for a successful and rewarding franchise operation.
Pros & Cons
Established Brand Recognition: KFC is a globally recognized brand with a strong market presence, which can attract customers and drive sales.
Proven Business Model: The KFC franchise system has a proven track record of success with a well-established business model and operational procedures.
Marketing and Advertising Resources: Franchisees benefit from KFC’s national marketing campaigns and advertising resources, which can enhance visibility and drive customer traffic.
Access to Supply Chain: KFC’s established supply chain ensures consistent quality and availability of ingredients, reducing supply chain challenges for franchisees.
High Initial Investment: The cost to open a KFC franchise can be substantial, including franchise fees, construction costs, and equipment expenses.
Ongoing Fees: Franchisees are required to pay ongoing royalty fees and contributions to national advertising funds, which can impact profitability.
Operational Restrictions: Franchisees must adhere to KFC’s strict operational guidelines and standards, which can limit flexibility and creativity in managing the business.
Intense Competition: The fast-food industry is highly competitive, with numerous players vying for market share, which can affect performance and profitability.
Dependence on Brand Performance: Franchisee success is closely tied to the overall performance of the KFC brand, and negative trends or brand issues can impact individual franchise profitability.
Who owns KFC?
- KFC is owned by Yum! Brands, Inc., a global restaurant company headquartered in Louisville, Kentucky. Yum! Brands also owns other major fast-food chains such as Taco Bell and Pizza Hut, making it one of the largest fast-food operators in the world.
Is KFC a franchise?
- Yes, KFC operates as a franchise. The brand uses a franchising model to expand its global presence, allowing individuals and entities to operate KFC restaurants under its established brand and business system. Franchisees benefit from KFC’s established brand recognition, support, and operational guidelines.
Who is KFC’s biggest competitor? What are alternatives to KFC?
- KFC’s biggest competitors include Chick-fil-A, Popeyes, and McDonald’s, each offering their own versions of chicken and fast-food options. Alternatives to KFC include other fast-food chains like Wendy’s and Burger King, which provide different menu items but compete in the same quick-service restaurant space.
Is KFC still successful?
- Yes, KFC remains a highly successful and influential brand in the global fast-food industry. With over 24,000 locations in more than 145 countries, KFC continues to attract a broad customer base through its iconic menu offerings and strong brand recognition. The company's ability to adapt to changing consumer preferences, including expanding its menu and incorporating technology, has helped maintain its relevance and success. Despite facing challenges from competitors and market fluctuations, KFC's robust franchise system and global reach contribute to its ongoing success.
How many locations does KFC have?
- As of 2024, KFC has 3,761 locations in the U.S., of which the vast majority are franchised locations with only 46 are affiliate locations.
What is the failure rate of KFC?
- The most recent calculated 3-year failure rate of KFC was 8% in the U.S.
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