Click on one of the questions below to learn more.
The above amounts do not include the initial investment required to construct the restaurant building, training expenses, grand opening expenses or opening inventory. Please refer to the KFC Franchise Disclosure Document (FDD), Item 7, for more in-depth information on the total investment.
How much will I pay in royalties and advertising? What fees will I pay when I become a KFC franchisee?
Initial Franchise Fee =
Monthly Service Fee (Royalties) =
Advertising =
Monthly Service Fee (Royalties) =
Advertising =
$45,000 (if you open a KT multi-brand restaurant, the fees will be $75,000)
5 percent (5%) of Gross Sales
5 percent (5%) of Gross Sales (Includes national and local contributions)
5 percent (5%) of Gross Sales
5 percent (5%) of Gross Sales (Includes national and local contributions)
The above amounts do not include the initial investment required to construct the restaurant building, training expenses, grand opening expenses or opening inventory. Please refer to the KFC Franchise Disclosure Document (FDD), Item 7, for more in-depth information on the total investment.
How long will it take to get approved as a franchisee?
Initial qualification involves a series of background checks and interviews and generally takes 10-12 weeks. After that, site registration and approval can take three to nine months, but is dependent on when you submit a site for registration.
How long will it take to build my restaurant?
Generally, once your site has been approved through the internal site registration process and you have signed your option agreement, you have eight months to begin construction and one year to open for business.
Who will build my restaurant?
As an independent businessperson, you are responsible for the construction of your restaurant however there are many general contractors that work across America with significant experience building KFC Restaurants. Should you wish to leverage KFC’s development expertise, KFC Development Services are available on a fee basis. Contact your Franchisee Recruiter or Franchise Developer for more information.
Will you provide plans and an equipment list? Can I use equipment that I already own or used equipment?
The KFC Development Team will provide you with standard building plans that you and your contractor (if applicable) can use. The team will also work with you on any changes to the site layout due to city restrictions, ingress/egress, etc. In most cases you will not be allowed to use equipment or furnishing you already own. You will work with the Unified Foodservice Purchasing Co-op (UFPC) on standards and specifications regarding furnishings, equipment and approved suppliers for both.
There’s already a KFC in my market, can I add another one?
Existing KFC operators have a protected territory of 1.5 miles or 30,000 people, whichever is smaller. Outside of that, KFC seeks to build in quality trade areas that allow for reasonable store spacing in a market. Stores are only approved if the sales impact on existing KFC restaurants is below established standards. Your KFC representative can explain these standards.
Does KFC plan to sell any company-operated restaurants in my area? Can I get a list of all the restaurants available for sale?
KFC may sell existing company owned units to existing or new franchisees. Given that these stores are operating today, we do not issue a summary list of what is available. If you are qualified as a KFC franchise candidate and have indicated that you would like to buy stores in a specific geographic area, we will determine if we have stores for sale that meet your request.
What will my sales be?
KFC makes an Item 19 financial performance representation in their FDD . You will receive an FDD once you have submitted a completed franchise application. Prospective franchisees are encouraged to conduct their own independent investigation to determine potential sales levels prior to signing any Franchise Agreement. Existing franchisees are a resource you can use for more KFC franchise information. A list of domestic franchise units, the franchisee's name and phone number are listed in the FDDs.
How much money will I make? What will be my profit percentage? What are the profit margins of other franchisees? What kind of return on my investment may I expect?
KFC provides some key cost information in Item 19 in the FDD. Prospective franchisees are encouraged to use this information as they determine whether they believe a restaurant may be profitable in their area. Existing franchisees are a resource you can use for more information. A list of domestic franchise units, the franchisee's name and phone number are listed in the FDD.
How much will food and supplies cost? What suppliers should I use?
You are required to purchase supplies from approved suppliers only. KFC will provide you with a list of approved suppliers. KFC provides some key cost information in Item 19 in the FDD. The United Foodservice Purchasing Co-Op (UFPC) works on behalf of the entire system to secure the most favorable pricing for necessary items.
Can I use my own recipes and menu ideas?
Franchisees must sell only approved products in their restaurants. Menu ideas can be submitted for evaluation by the Food Innovation Team but must receive approval prior to being sold in the restaurant.
What type of marketing materials and support will I receive?
KFC is continually working to develop new products and to improve existing products. Franchisees receive a calendar of upcoming events from the brand marketing departments as well as order forms for POP and other advertising materials for specific promotions.
What kind of training does KFC offer?
Before you open your restaurant, three key holders of your restaurant are required to attend and complete KFC’s training program. Key holders of the restaurant could include the franchisee, an Above Store Leader, Restaurant General Manager or Assistant Manager. Training ranges from eight to ten weeks (depending on the unit to be opened) and is conducted both centrally in Louisville, KY and in certified training stores. There is a fee for the training and the Franchisee is responsible for all costs incurred including travel and lodging of the management team.
Do you have a quality assurance program? Who enforces quality?
KFC monitors quality using a variety of programs. One is a customer based shopper program where restaurants receive customer feedback on their store experience. Secondly, food safety audits are conducted by a third party service to ensure that food safety standards are met at the store level. Finally, the company conducts CFF Standards Audits in store and feedback is given to the operators regarding execution excellence. Franchisees are required to meet certain operating standards as part of their franchise agreement.
Will I be required to use specific accounting service software at my restaurant?
KFC’s FDD describes the type of electronic cash register system and software requirements to be used in the restaurant. It is strongly recommended that you use the KFC supported MERIT back-of-house operating platform. You must prepare and keep detailed records regarding all sales and other financial aspects of your restaurant operations. You may also be required to submit reports of product mix, hourly and day-part sales and other reports as may be determined by KFC.
Does KFC provide restaurant financing?
KFC does not provide financing, however, they do provide a list of banks/financing institutions that have expressed an interest in lending to KFC franchisees. To facilitate financing, KFC is listed on the SBA Registry and has prepared a Bank Credit Report to answer loan department inquiries about the KFC/QSR/Franchising business.
Is KFC listed in the Small Business Administration (SBA) Registry?
Yes, the franchise registry (www.franchiseregistry.com) is a national online listing of approved franchise systems whose franchisees will receive accelerated loan processing through the U.S. Small Business Administration (SBA). Through this process, small business owners are provided with higher levels of service and quicker loans. Franchise systems not listed on the site are not eligible for expedited loan processing through the SBA.
Do you offer a minority loan program?
KFC is developing a minority funding initiative to encourage additional minority franchise ownership. Details of that KFC franchise program will be released in coming months.
Fanatical customer service is not a single act. It is a habit practiced every moment of every day. It takes months to find a customer but only seconds to lose one.
Tanweer Ahmed
Yum! Multi-Brand
Franchisee
since 2006
Yum! Multi-Brand
Franchisee
since 2006
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