KFC FRANCHISE:  ALL YOU NEED TO KNOW – Cost, Fees & Opportunities

KFC FRANCHISE:  ALL YOU NEED TO KNOW – Cost, Fees & Opportunities

INTRO

KFC is known for its crispy, delectable fried chicken, but the world’s largest quick-service chicken restaurant chain has evolved into something more. KFC, originally known as Kentucky Fried Chicken, is most known for its fried chicken pieces in a variety of styles, which are a standard menu item. Wraps, salads, and sandwiches have been added to the menu. And, as always, wonderful side dishes such as mashed potatoes and gravy, coleslaw, and corn complement a bucket of KFC chicken nicely. KFC also serves beef and pork products such as hamburgers, kebabs, poutine, ribs, and other items in its restaurants outside of the United States.

OVERVIEW

More than 12 million customers are served every day at KFC’s more than 15,000 restaurants in 109 countries and territories worldwide, with more than 5,200 locations in the United States alone. People can’t get enough of the brand’s fried chicken, which comes in three varieties: original, extra crispy, and grilled. The 11 herbs and spices that founder Colonel Harland Sanders perfected more than a half-century ago are still used in KFC chicken recipes. Yum! Brands, Inc., the world’s largest restaurant company, owns KFC. The corporation is looking for entrepreneurs who want to establish multiple-unit regions with KFC restaurants and will help them along the way.

Picture of KFC franchising building

Kentucky Fried Chicken Franchise Opportunities – History

Colonel Harland Sanders, who died in 1980 but originally served his fried chicken in 1930 at Sanders Court & Cafe in North Corbin, Kentucky, developed Kentucky Fried Chicken in 1952. He created his Original Recipe for buddy chicken in 1940. In the 1950s, he sold his business and began distributing his chicken to restaurant owners across the country, the first of which was in South Salt Lake City, Utah, and became the original Kentucky Fried Chicken. Over the years, the KFC franchise has been sold three times: to Heublein in 1971, R.J. Reynolds in 1982, and PepsiCo in 1986, when it became part of the company’s Tricon Global Restaurants division, which then spun off as Yum! Brands.

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Franchise Description:

KFC US, LLC (KFCLLC), a subsidiary of YUM! Brands, Inc., is the franchisor. Franchisees run a KFC restaurant that serves both dine-in and take-out chicken and other approved menu items. The Franchise Agreement grants franchisees a license to use I certain KFC trademarks, trade names, service marks, logos, and commercial symbols that the franchisor authorizes on a regular basis, including the “KFC” and “Kentucky Fried Chicken” marks; and (ii) proprietary business formats, methods, procedures, designs, layouts, standards, and specifications that the franchisor authorizes on a regular basis, solely in connection with the franchisee’s business.

Picture of kfc logo

Kentucky Fried Chicken Franchise Cost / Initial Investment / Kentucky:

Fried Chicken Franchise Income

 

The franchise fee to become a KFC franchise owner is $45,000, with an estimated startup costs totals ranging between $1.2 million and $2.5 million. A 5% royalty fee on gross monthly receipts is paid to the company.

Territory Granted:

Franchisees will not be given an area that is exclusive to them. Franchisees will have a protected territory of the smaller of I a radius of 1.5 miles around the outlet, or (ii) an area around the outlet where 30,000 people reside, or, in the case of a metropolitan area containing more than 100,000 people, within which 30,000 people reside or work, as long as they follow the Franchise Agreement (the protected territory). The franchisee’s rights to the protected territory will not be contingent on achieving a specified level of sales volume, market penetration, or other performance metrics.

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Except for (a) special event sales and (b) in some cases, food products (other than chicken in whole pieces) using the name or image of Colonel Sanders, the franchisor will not use, or permit others to use, any of the marks that franchisees have the right to use under the Franchise Agreement in the protected territory. Except for I catering and special event sales and (ii) delivery sales conducted solely in line with KFCLLC’s catering and special event protocols and under the form it demands, franchisees may only sell approved products at the outlet.

Obligations and Restrictions:

The franchisee or a fully-trained and competent manager must commit full time to the management and operation of the outlet during the length of the Franchise Agreement. If the franchisee is a corporation, entity, partnership, or has more than one owner, they must also name a “Control Person,” who is the person who has the authority to and actively directs the corporation’s or entity’s business affairs with respect to the outlet. Individual owners, as well as their spouses, must sign the Guaranty or Spousal Consent (where applicable) in their own right.

Franchisees must sell all required products as specified by the franchisor on a regular basis. No merchandise may be delivered from the outlet or anyplace else by franchisees. Franchisees may cater and sell at special events only if they follow the franchisor’s catering and special event processes and sign an amendment required by KFCLLC in the case of catering and special event sales including delivery.

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Term of Agreement and Renewal:

The initial franchise period is 20 years long. Franchisees can renew if they meet the requirements, but they may be requested to sign a contract that has fundamentally different terms and conditions than the original contract.

Financial Assistance:

For qualified minorities, YUM offers an optional financing aid program. The YUM Minority Assistance Program provides funding to new minority franchisees who want to buy an existing location, buy a company-owned location, or open a new one. YUM will guarantee 25% of the franchised business loan’s principal, up to a maximum of $3,000,000 per loan or franchisee. The YUM Minority Lending Assistance Program may be terminated at any time by YUM. KFCLCC does not offer, directly or indirectly, any financial arrangements for a franchisee’s initial investment or the continued operation of the KFC company, save as indicated.

Kentucky Fried Chicken Business Opportunities: Other Information

Yum! is rapidly expanding its multibranding strategy, which combines two of its trademarks in new restaurant locations under one roof. It might, for example, integrate KFC and Taco Bell into a single structure. The multibranding concept is transforming the quick-service sector in the United States, drawing more customers and providing them with more choices.

 

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