KFC Franchise Cost and Fee
Do you want to be one of the owners of the world most popular chicken restaurant chain? Then you need KFC franchise information.
Information About KFC
KFC Corporation is the largest fast-food chicken producer and franchiser in the world. The Corporation is established in Louisville, Kentucky at 1930. The Company breaks the perception of fast food among the US people and challenges the dominance of hamburger. This generated a remarkable advantage for the Company.
The first franchise of the KFC opened in Utah in 1952. Since then the company has experienced rapid expansion. It is also one of the first US fast food chain franchises internationally. In the mid-1960s, the Company has opened restaurants in Canada, the UK, Mexico, and Jamaica. Today, in more than 125 countries there exist over 15,000 KFC franchises. And every day the family is getting extended.
Why Should I Choose KFC?
There are many advantages to becoming a member of this big family.
- The Corporation is the world’s most popular and influential chicken fast-food chain.
- KFC franchise profit is one of the highest among all the franchise options.
- The kitchen still follows the original formula ORIGINAL RECIPE® of 75 years which is maintained cautiously.
- One of the fastest growing retail brands in both emerging and developed markets.
- The Corporation encourages minorities and women-owned franchises.
- Once you enter to KFC family, you have territorial priority over the newcomers which increase your competitiveness.
Do I Qualify To Buy KFC Franchise
There are several franchisee assessment criteria of KFC.
- Multi-Unit Operations Experience: You are expected to prove your ability to operate a multi-unit and quick service restaurant. You should have experience in such business ownership.
- You should meet the financial qualifications mentioned below.
- The Corporation values personal reputation. You should have clean criminal convictions and litigation.
- The Corporation values personal reputation. You should have a clean bankruptcy history.
- The Corporation values financial stability. You are required t have minimum 700 credit score.
- You have good motivation and commitment.
- You should be willing to guarantee Franchise Agreement obligations.
- The time commitment for required training programs is a must.
What Should I Do?
If you think you meet the requirements and want to make a huge amount of money with the Brand, you should learn KFC franchise application procedure. Initial review of the application procedure generally takes 8-12 weeks. This period includes personal and financial background checks and interviews. Once, you pass the initial review the transaction and approval period may take just days or months depending on your operation plans, business size, and type etc.
- Application: Fill the online form in the website which shows your intention. Once you fill and send it, the Corporate will contact you for a full application. Complete application.
- Pre- Qualification: Corporate checks your personal information and financial capability you noticed in the application. Complete authorization form. Verify liquid assets. Submit application fee. Submit an operations plan and ownership structure. This process takes 4-6 weeks.
- Qualification: The Corporate review the operation plan and ownership structure of the franchises. You will be interviewed. This process takes 4-6 weeks.
- Once you pass the previous steps, you should start with your restaurant. You can buy an existing restaurant or check new building options. Meanwhile, you are expected to complete training requirements.
While searching for a location, you should note that KFC has a territory protection principle. Existing operators have a protected territory of 1.5 miles or 30,000 people. Prior to allowing a new franchised operation, KFC is responsible for sending a written notice to the closest operator 30 days prior to opening. During the 30 days, the existing franchisee may compete with the new one for the location. She may apply for the right to build the restaurant. KFC will consider the application based on the performance and financial capabilities of the franchise and shall negotiate or not.
For any other question about the application process, contact to the Corporate through local KFC franchise contact number.
First of all, you should successfully complete the initial training program, Key Operator Restaurant Training. The attendance of key operator is compulsory while franchisor may demand other employees to attend and complete training.
All training programs will be scheduled at KFC’s national, regional or divisional offices or other places depending on the franchisor.
Training programs include:
- Computer-based training through its Learning Zone Program
- Written materials
- On-the-job training
- Classroom instruction
The training includes 1-week orientation, 2 weeks online training and 4 weeks in a certified restaurant.
Once you complete the initial program, you will attend training at the Outlet. You may also call for additional training courses, programs and seminars from time to time.
Costs and Profits
In addition to the qualifications you need to meet, financial requirements are one of the significant parts of the franchising process. KFC wants its franchisees to have a minimum total net worth of $1,500,000. Moreover, you are expected to hold $750,000 total liquid assets. The latter should be cash or an asset that can be converted to cash within 10 business day. Based on the ownership type and the size of the business, the minimum financial qualifications may vary. The initial franchise fee is $45,000 which may also vary based on the agreement.
You will pay 5% of Gross Revenues as a service or royalty fee.
KFC’s advertisement policies are global. The Corporation spends a huge amount of money for advertising campaigns which directly increases the traffic of all franchisees. In return, you are required to pay 5% of Gross Revenues as an advertising fee.
Others costs you are expected to pay include, application fees, transfer fees, training expenses, construction costs, grand opening expenses, opening inventory and monthly merit fees.
You are allowed to start with an existing restaurant. If you want to buy an existing restaurant which is for sale, the negotiations are expected to be between you and seller. However, prior to any transfers, all of them should be reviewed and approved by KFC through the Transaction Approval process. If it is your first time to run a KFC, you should successfully complete the application procedure.
KFC is registered to the US Small Business Administration (SBA). Through this process, franchisees catch the opportunity of a higher level of service and quicker loans.
On the other hand, the money you will gain depends on the location and your ability as a businessperson. From start-up assistance to the advertisement, KFC provides all the opportunities to partners. Once you have submitted a completed application procedure, you are given the Franchise Disclosure Document (FDD). You can find more about the financial performance in this document.