KFC Franchise

Overview

KFC US LLC offers an exciting opportunity to operate a KFC outlet. As a franchisee, you'll be running a dine-in and carryout venue, offering a range of approved chicken and other menu items.

Investment Details

• New Outlet Investment: $1,852,825 - $3,771,550 (Includes $45,575 - $50,500 fees to KFCLLC or affiliates)
• Reopened/Remodeled Outlet Investment: $1,052,825 - $2,521,550 (Includes similar fees)
• Multi-Unit Development: $135,000 - $540,000 for 3 to 12 outlets​​.

Franchise Agreement and Operations

• Franchise Rights: Upon approval, you'll sign a Kentucky Fried Chicken Franchise Agreement, granting rights to operate a KFC outlet at an approved location.
• Products: Your outlet will offer a range of chicken entrees, sides, and beverages, following KFCLLC's approved product list​​.
• Development Rights: For multi-unit operations, separate development agreements are available without territorial protection or exclusive development rights​​.

Fees and Royalties

• Initial Franchise Fee: $45,000, divided into a Deposit Fee ($20,000) and an Option Fee ($25,000).
• Training Fee: $3,000 for key training programs.
• Background Check Fee: $575 - $2,500 per person.
• Development Fee: $45,000 per outlet under the Development Agreement.
• Royalties: 4% to 5% of Gross Revenue monthly.
• National Co-Op Fee: 4.5% of Gross Revenue monthly.
• Renewal Fee: $9,000, adjustable based on the Consumer Price Index.
• Transfer Fees: Vary depending on the transaction​​.

Renewal and Amendments

• 5/15 Amendment: For new outlets or purchases of former KFCC outlets, this amendment includes a 5% royalty, a 10-year renewal right, and mandatory upgrades at 5 and 15 years​​.

Competition and Regulations

• Market Competition: Intense competition in the restaurant industry.
• Regulatory Compliance: Strict adherence to health, sanitation, and various other regulations is required​​.

Key Takeaways

• Owning a KFC franchise involves significant investment and adherence to KFCLLC's standards.
• The franchise offers a comprehensive support system, including training and marketing.
• It's essential to understand the financial commitments, including initial fees, royalties, and potential development fees.
• Compliance with various regulations and intense market competition are key considerations for potential franchisees.

For further details, consult the full Franchise Disclosure Document provided by KFC US LLC.