KFC Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$45,000
Investment required
$1,053,000 - $3,772,000
Royalty fee
4% to 5%

KFC: Revolutionizing the Fast-Food Industry with Legendary Fried Chicken

Kentucky Fried Chicken, popularly known as KFC, is an internationally recognized fast-food chain specializing in fried chicken. The company's story began in 1930 when Colonel Harland Sanders started selling his fried chicken from a small restaurant in North Corbin, Kentucky. Sanders created a unique recipe featuring a blend of 11 herbs and spices, which has become the hallmark of KFC's offerings and remains a closely held secret.

The franchising journey of KFC officially started on September 24, 1952, with the opening of the first franchise in Salt Lake City, Utah. Colonel Sanders, born in 1890, was not just the founder but also a prominent cultural figure, known for his iconic white suit and goatee. His image is still a crucial element of KFC's brand identity.

Experiencing rapid growth, Colonel Sanders sold the company in 1964 to a group of investors led by John Y. Brown Jr. and Jack C. Massey. This transition facilitated the company’s expansion and standardization. KFC's main office is in Louisville, Kentucky, with an additional global management office in Dallas, Texas. As part of Yum! Brands, KFC has expanded to become the second-largest restaurant chain in the world by sales, with numerous outlets in over 150 countries.

KFC has diversified the fast-food landscape by introducing various chicken products, including their iconic bucket meals, and has successfully competed against the dominance of hamburger chains. Over the years, despite several ownership changes, KFC has maintained its commitment to serving Colonel Sanders' original fried chicken recipe to customers globally.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

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 $1,000,000 to $1,900,000
Building & Site Costs (Alternate Note) $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 Estimated Expenditure $1,852,825 to $3,771,550
Total Estimated Expenditure (Alternate Note) $1,052,825 to $2,521,550

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Number of units

2024
Franchised units

3,872

3,842

3,715

Company-owned units

46

46

46

Total units

3,918

3,888

3,761

Franchise Disclosure Document

Training 

The training program for KFC franchisees is meticulously designed to equip franchisees and their key operators with the necessary skills to manage a KFC outlet effectively. The initial training program includes a New Franchisee Immersion Program, where participants gain insights into KFC's history, understand its organizational structure, and meet with KFCLLC partners. 

Above Restaurant Leader Training encompasses restaurant orientation, customer service team member training, packing and food safety protocols, restaurant operations compliance, leading food quality, cooking and projections, enhancing guest experience, managing restaurant finances, and MERIT basics. Key Operator Restaurant Training involves collaboration with a Franchise Business Coach on an onboarding plan, a restaurant visit and training plan overview, and an intensive 5-week training covering service mastery, chicken mastery, preparation of sides, freezer to fryer products, compliance with hazard communications, current promotional eLearning, and state-required food handler training.

KFCLLC also provides a web-based Learning Management System (LMS) that delivers essential training processes and tracks the completion of training for restaurant employees. Additionally, franchisees or their representatives must attend OSM System on-site training classes at KFCLLC’s RSC in Louisville, KY, followed by OSM and LMS training classes through the LMS application. The cost of attending these classes is covered by the monthly services fee (excluding travel expenses), and the training content is provided at no additional charge.

Territory Protection

Franchisees are granted the right to operate a KFC Restaurant within a defined area known as the "Protected Area." Within this area, franchisees are required to develop and operate the Franchised Restaurants. While there are certain territorial rights associated with the Protected Area, these rights do not ensure exclusivity.

Franchisees may encounter competition from other franchisees, Company-Owned Outlets, or other distribution channels or competitive brands controlled by KFCLLC. However, within the Protected Territory, KFCLLC will not use, or allow others to use, any of the Marks that franchisees are authorized to use under the Franchise Agreement for selling food products.

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