KFC Franchise FDD, Profits, Costs & Fees (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
Number of units: 3,715 franchises
Initial investment: $1,053,000 - $3,772,000
Average revenue (AUV): $1,603,000
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:
| Type of Expenditure | 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
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
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