As one of the most well-known fast-food companies in the United States, KFC offers a franchise opportunity that not many people pass up as long as they have an interest in the sector. KFC is committed to improving people’s lives. They actively promote diversity and inclusion while assisting the local community in the fight against hunger.

As of July 27, 2020, KFC had 22,600 locations across 135 nations, with a brand value of US $8.3 billion and $27.9 billion in sales. 

According to IBISWorld, the chicken franchises market size is $56.6 billion in the United States with a growth rate of 1.8% from 2013-2018. Cumulative Market growth for 2018 to 2023 is anticipated at 8.4%.

What is the full form of KFC?

KFC refers to Kentucky Fried Chicken, and Harland Sanders created the company in 1930 if you are not cognized of the same. 

Is KFC a Franchise Business?

KFC is a franchising opportunity. In fact, it is considered to be one of the most unquestionably profitable and rewarding opportunities for those looking to launch a retail-based food service franchise in the United States.

General information about KFC Franchise

Although KFC began as a straightforward company selling only traditional fried chicken, it now offers a wide range of chicken dishes, including the beloved classic as well as sandwiches, grilled chicken, and boneless wings; let’s not even brought up the side items, such as fries. Although not all franchises are the same, KFC offers a variety of franchising options with varying expenses associated with them based on location size and the kind of restaurant you want to create. 

KFC provides a variety of foods to keep up with modern tastes. In order to appeal to a wider audience in nations like India, it has now launched a number of vegetarian choices. Also, KFC customizes its menu based on the nation in which it operates. 

KFC Franchise Requirements

The minimum cash required to start a KFC franchises is $750,000. Further, the minimum net worth required by a potential franchisee is $1,500,000. The franchise fee and franchise cost along with the royalty fee are provided hereafter in the blog. This is coupled with a royalty fee of 4-5% and an advertising fee of 5%. 

KFC Franchise

How much does a KFC franchise cost?

As far as the cost of a KFC franchise is concerned, the franchise fee to become a successful franchise owner is $45,000 which is generally coupled with an initial cost ranging somewhere between $1,440,600-$3,163,550 which might prove to be a little costly for people. 

KFC Franchise Price and Costs
KFC Franchise Fee $45,000
KFC Franchise Cost $1,440,600 – $3,163,550
Royalty Fee 4-5%
Advertising Fee 5%
Term of Agreement 20 years
Is franchise term renewable? Yes
Veteran Discount  Yes

How much do KFC franchise owners make?

I will project the KFC franchise profit and years to recoup the investment (ROI).

AUV Estimated Annual Profit (12.5%) Estimated Annual Profit (15%) Estimated Annual Profit (18%)
$1,279,276 $159,909 $191,891 $230,269
Recoup mid-point$2,302,075 14 years 11 years 9 years

The estimated KFC franchise profit is in the range of $159,909 to $230,269 and it will take 9 to 14 years to recoup the investment. 

According to industry standards, getting a return on the franchise investment will take a very long time.

Facts and History Nobody Told You Of KFC

  • Harland Sanders, also known as Colonel Sanders created KFC.
  • The first KFC restaurant debuted in 1952 in Salt Lake City.
  • Kim Kardashian owns a pair of KFC Crocs, which you can also purchase.
  • The KFC name was formally adopted in 1991.
  • KFC is traditionally consumed on Christmas Day.
  • The name was officially adopted as KFC in 1991.
  • The KFC recipe is an extremely well-kept secret. 
  • KFC in South Africa sponsored a wedding for a couple who got engaged there.
  • The Colonel has a video game of his own. It is known as Colonel Quest.
  • The Colonel began his chicken empire in 1939, but the first KFC bucket meal was sold in 1957.
  • There are many different options to customize your KFC order.

KFC Franchise Review and Information
Industry Type Food Franchise Opportunities
Sub Category Chicken Franchise Opportunities
Year Established 1930
Company Name Kentucky Fried Chicken, a subsidiary of Yum! Brands
Founder/Management Head Tarun Lal, President
Franchising Started 1952
Employees at Company H.O 400
Franchise Expansion Plan US and worldwide
Number of Units 26,498 (as of 2022)
Number of Franchise Units 3872 (as of 2021)
Social Media Handles Facebook
Company Office location  Louisville, KY

KFC Training to Franchises

Franchisees are required to participate in and successfully complete the KFC LLC initial training program on operating an outlet to the satisfaction of the franchisor. A key operator may be chosen by a franchisee to finish the Key Operator Restaurant Training. At the franchisor’s direction, all other employees of franchisees are required to attend and finish the training program to KFC LLC’s satisfaction. 

All training sessions shall be organized as necessary at the national, regional, or divisional headquarters of KFCLLC, as well as any additional locations that the franchisor may specify. Training options include classroom instruction, written material, on-the-job training at other outlets, computer-based training through its Learning Zone platform, and written material. 

The person who successfully completes the Key Operator Restaurant Training will instruct staff members at the franchise establishment. At such times and locations as KFCLLC reasonably requires, the franchisor may require franchisees and their staff to attend and complete ongoing and additional refresher training courses, programs, and seminars.

KFC Operations to Franchises

KFC offers its franchisees a variety of resources and opportunities. There are non-traditional options available along with traditional establishments that could increase the opportunities for franchisees and the business. These are smaller alternatives with 900 square feet or so of usable space for places like airports, universities, truck stops, etc.

The company provides classroom instruction, continuing assistance, and several weeks of on-the-job training. Some of this assistance consists of marketing assistance to go along with KFC’s already successful and award-winning advertising.

Establishing a KFC franchises might provide a more certain outcome when compared to making an investment in a brand that can struggle to succeed in a crowded and competitive market.

How is KFC Territory Granted to Franchises

Franchisees won’t be given a territory that is exclusive in nature. However, as long as franchisees are in compliance with the Franchise Agreement, they will have a protected territory of the smaller of 

  1. an area within 1.5 miles of the outlet
  1. within a 30,000-person radius around the outlet; or, in the case of a metropolitan region with more than 100,000 inhabitants, within a 30,000-person radius within the metropolitan area. 

The fulfillment of a specific sales volume, market penetration, or other performance criteria shall not be a prerequisite for the franchisee’s rights with regard to the protected territory.

KFC Franchise

What is the Franchise Term of Agreement and Renewal?

The initial term of a KFC franchising is 20 years. Franchisees can renew the same if they satisfy the requirements, but they might be required to sign a new agreement that materially differs from the first agreement’s terms and conditions.

Does KFC provide Financial Assistance to Franchises?

For eligible minorities, YUM provides an optional financing aid program. The finance for new minority franchisees looking to buy an existing outlet, an existing company-owned outlet, or establish an entirely new outlet is covered under the YUM Minority Assistance Program. Up to a total of $3,000,000 for each loan or franchisee, YUM may guarantee 25% of the franchised company loan’s principal.

The YUM Minority Lending Help Program may be terminated by YUM at any time. Apart from what is stated, KFCLCC fails to provide any arrangements for funding a franchisee’s initial investment or ongoing KFC company operations.

Pros & Cons of owning a KFC Franchise

Pros of owning a KFC Franchises

  1. Franchising for over 70 years as a reliable franchisor.
  2. A good company in the fast-food industry 
  3. KFC team handles all the processes while getting started, this includes finding a location, training potential employees, etc.
  4. The short duration of training
  5. A worldwide brand and franchise
  6. expanding and strong franchise despite COVID-19 issues and circumstances
  7. Success is all but a given if you are situated in the appropriate area.
  8. Availability of a variety of choices.
  9. Franchise offers recognition, awareness, and everything else required by the franchise

Cons of Owning a KFC Franchising

  1. No financing
  2. A tedious task of handling royalties for the rest of your life
  3. Requirement of following the terms and rules along with renewing the contract to continue operating for a period of every 20 years
  4. Can prove to be an expensive start
  5. A digital fee of 3.5% of gross revenue from all digital orders.
  6. No availability of absentee ownership 
  7. High investment of time
  8. No exclusive territories.

KFC Franchise Rankings

Franchise Deck Analysis and Overview

You must be financially prepared for an initial investment including a franchises fee and other initial expenses if you want to join the KFC franchising team. You should also be ready for recurring costs such as advertising, royalties, and possible renewal fees. Franchisees must also satisfy the established net worth and liquid capital standards of the franchisor.

The bucket of fried chicken at KFC is famous among people. This is frequently served with a few sides to provide a complete dinner for a single person or a family. While the restaurant’s cornerstone is this comfort cuisine, new items are occasionally introduced to the menu, creating a wonderful blend of familiarity and innovation.

The employer tends to seek motivated and devoted employees. KFC franchisees can anticipate being actively involved in the day-to-day operations of the business. Also, there is a strong emphasis on innovation, simplification, and improvement to satisfy customers. This can be a wise choice if you are willing to put everything on the line for a business that values improvement.

Potential Risks to consider before investing in a KFC franchising

You must keep in mind the following potential risks before you consider investing in a KFC franchises

  • Supply chain disruption 
  • Possibility of backfiring of the franchise system 
  • Public perception of the fast-food industry in general and KFC

Such risks can end up weakening brand loyalty, and brand attractiveness, and reducing the overall revenues earned by the franchise. 

Is the KFC Franchise Profit Worth the Cost?

Although the franchising cost might come out as being a little high for some people, still they can reap the benefits of a solid market position with KFC franchises. In some parts of the United States and the world, the terms “fried chicken” and “KFC” have come to mean the same thing. 

KFC is a reliable franchisor, and depending on where you are, you could earn significantly more than the average sales.

KFC Franchise Success and Failure Rate

The below table will highlight the KFC franchising success and failure rate for the last 3 years. This will supplement your decision-making process.

Year Format Start End Change
2019 Franchise Owned       3980 3969 -11
Company Owned       55 56 +1
2020 Franchise Owned       3969 3860 -109
Company Owned         56 47 -9
2021 Franchise Owned         3860 3872
Company Owned       47 47 0

Competition Analysis of KFC Franchises

KFC Cost to Franchise Franchisee Fees Royalty + Ad fees Expected Profit Recoup of Capital FD Rating
KFC $1,440,600 – $3,163,550 $45,000 4-5%+5%   9-14 years 4/5
Chicken Guy Franchise $622,500 – $1,288,000 $20,000 6%+4% 3.3/5
Pluckers Franchise $70,000 – $225,000 $25,000 2-3%+1-2% 3/5
Chicken Guy Franchise  $622,500 – $1,288,000 $20,000 6%+4% 3.3/5
Golden Chicken Franchise  $918,000 – $1,438,000 $ 30,000 4%+3% 3.7/5

The FD rating for KFC franchising is 4.0/5.0.

KFC Franchise

Conclusion: Is the KFC franchise a good choice?

KFC is committed to improving people’s lives. They actively promote acceptance and diversity while assisting the local community in the fight against hunger. The business is also concerned about the environment and animal welfare, and it works to better both of these areas and lessen its environmental impact.

Franchisees are expected to be hands-on, but they are also viewed as valuable assets for the business and as members of the community. KFC aims to create a welcoming environment that can feel like home because they think comfort should go beyond the dinner table.

Establishing a KFC franchises might provide a more certain conclusion than making an investment in a brand that can struggle to succeed in a crowded and competitive market.

Entrepreneurs who want to open a franchise in the category  franchise opportunities categories can look at 

  1. Pluckers Franchise 
  2. Raising Cane’s Franchise
  3. Chicken Salad Chick Franchise
  4. Dave’s Hot Chicken Franchise 
  5. Chicken Guy franchise 
  6. Halal Guy Franchise
  7. Golden Chicken Franchise

Frequently Asked Questions (FAQs)

  1. Is the KFC franchise profitable?

Yes, KFC franchises is a highly profitable franchises to invest in as a result of its brand image and reputation. 

  1. Can you make money owning a KFC?

Yes, a franchising owner can make a considerable amount of money by owning a KFC franchises. 

  1. Is a KFC a franchise?

Yes, KFC is a franchising business. They started franchising in 1952. 

  1. How much is a KFC franchise?

A KFC franchising has an initial franchises fee of $45,000 and an initial investment of $1,440,600 – $3,163,550. 

  1. How do KFC franchises make money?

KFC franchises make money by selling fried chicken and other delicacies along with great customer service to people. 

Published On: March 26th, 2023 / Categories: Chicken Franchise Opportunities, Food Franchise Opportunities /


  1. Buscema March 27, 2023 at 6:09 am - Reply

    KFC is one of the most popular fast-food franchises in the world. It is renowned for its delicious fried chicken and other classic dishes. KFC’s franchise system enables entrepreneurs to operate their own business. KFC’s strict standards ensure that franchises provide quality products and services to customers. KFC franchisees benefit from economies of scale, making it easier to run a successful business.

  2. Michael March 27, 2023 at 6:11 am - Reply

    KFC provides a wide range of products, including burgers, salads, and desserts, to meet the needs of different customers. KFC offers a comprehensive training program for franchisees and employees, ensuring that they have the skills and knowledge to run a successful business. KFC runs promotional campaigns to drive footfall and increase sales. KFC has an extensive menu and adjusts it to meet local tastes and preferences. KFC offers a variety of value meals, enabling customers to get more for their money.

  3. Fitzgeald March 27, 2023 at 6:13 am - Reply

    KFC has an excellent reputation, which helps to attract customers and increase sales. KFC has a loyalty program to reward regular customers and increase customer loyalty. KFC provides ongoing support to franchisees, helping them to run a successful business. KFC has a wide global presence, making it easier for franchisees to expand their business. KFC has a strong brand identity, which helps to differentiate it from other fast-food chains.

    • franchise December 7, 2023 at 6:21 pm - Reply

      yes kfc franchise has excellent reputation and is quite world famous with its roots in UsA

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