KFC Franchise: How to Invest, Apply and become Owner of KFC Franchise

To date, many companies claiming to have the best fried chicken have come and gone, but KFC remains the best of the lot.

No wonder their trade secret is indeed good, which is why it has become a fast-food giant in such a short time.

KFC or Kentucky Fried Chicken is one of the most reputed quick service restaurants in the global forum. The menu of KFC is so good that it caters to the taste buds of every individual. 

If you want to invest in some business, then you should go for a KFC franchise because the demand for its food is ever-increasing.

Since the day KFC was launched, there has been no looking back and it has seen high-end profit margins as well.

The secret to the food of KFC lies in the 11 herbs and spices that have been used extensively which is why none of the companies are a competitor to KFC as of now. 

KFC has seen an increase in valuation from 5.3 billion dollars to 6.09 billion dollars in a single year from 2011 to 2012- so now the valuation is severely lucrative for smart entrepreneurs to invest in. 

How KFC Came Up

As surprising as it might be to many, KFC was not built in a day and was built on a lot of failures. The company was first set up in the year 1952 and was founded by Colonel Sanders.

He believed in his recipe and even through numerous hurdles and rejections had the dream to bring up his own food stand. 

He had to leave his studies due to a financial crisis and tried his hands in numerous fields like insurance, law and even tyre business but could not find his way to success.

But his luck turned when he was appointed at a gas station in Kentucky and for a few more bucks, he started preparing his fried chicken recipes and gave them to the customers. 

Word quickly spread about the tasty dishes and people started coming to the gas station solely for the food. Gradually he could afford to turn the gas station into a complete restaurant. 

KFC Franchise Outlets

The first KFC Franchise store of KFC was founded in the year 1952 in the US itself and the first overseas franchise was in the UK in 1965.

Colonel Harland Sanders died at the age of 90 due to pneumonia.

At the time of his passing, KFC had about 6,000 locations across 48 nations. By 2013, this number had grown to approximately 18,000 restaurants in 118 countries.

As of 2022, KFC operated around 25,000 outlets in 147 countries and regions worldwide and as of this year, the count is much more. 

As of India right now KFC has about 350 restaurants open around 100 cities and the numbers are going to increase for sure.

That is because even after so many trials and errors, none of the fast food chains have been able to come as close as KFC when it comes to the taste of the products.

There are numerous options to choose from like rice bowls, burgers, snacks, chicken strips and so on. The burgers are made out of fresh chicken and even the sauces are to die for. 

Also read: Ananthagiri Hills Resort Franchise | Sustainable Eco-Tourism & High ROI Potential

Why Should You Choose A KFC Franchise?

1. In the global forum, KFC is one of the fastest-growing food chains and the ones investing in it can expect quite a lot of profit margin. 
2. A company with a great reputation due to its transparency
3. Fastest-growing business domain
4. You can seize the opportunity to make the best out of their operating systems and create a business benchmark using a leading brand. 
5. Amazing network chain so that the best products and services can leave your customers satisfied. 
6. It is a tried and tested business model
7. You can get optimum training support for all your employees

KFC is one of the largest and most well-known quick-service restaurant (QSR) chains that originated in the United States.

It operates as a subsidiary of YUM! Brands, which also owns major names like Taco Bell, Pizza Hut, and WingStreet.

The KFC franchise offers comprehensive training to its team members. It also benefits from robust marketing and advertising efforts that help promote the brand.

Additionally, its large-scale purchasing power allows the company to reduce production costs and increase profitability. These advantages contribute to higher success rates for franchise owners.

KFC Franchise Cost and Return On Investment

There are two different kinds of business models for KFC- one is the traditional kind of restaurant that will require you to invest around 50 lakhs and the other non-traditional store will require you to have funds of around 1cr. 

On top of that, you will have to give an approximate royalty of 4%-5% depending on the sales to the franchisor. Here is everything that you need to know about the cost and ROI. 

The estimated cost to open a KFC franchise includes several key expenses. The franchise fee is approximately INR 36 lakh.

Monthly operational costs include rent at INR 90,000, worker salaries and related expenses at INR 1 lakh, and food costs at 35%, which amount to around INR 2.1 lakh.

Other recurring expenses include aggregator commission fees for platforms like Swiggy and Zomato at INR 20,000, transport costs of INR 20,000, and electricity and water supply bills of INR 27,000. 

The equipment cost ranges from INR 10 lakh to INR 20 lakh, while the royalty charge is between 4% and 5% of total sales, with an additional ad royalty fee of 2%.

The royalty fee, inclusive of GST, amounts to INR 33,000. The agreement period for the franchise is 20 years, which is renewable, and miscellaneous costs are estimated at INR 40,000.

Miscellaneous Costing

The information you’ve shared outlines the general financial requirements for starting a KFC franchise in India. Here’s a breakdown of what it entails:

• Investment Required: The total investment for setting up a KFC franchise in India ranges from INR 1 to 2 Crore (INR 1 – 2 Cr). This amount typically covers various aspects like setting up the store, equipment, initial stock, and other operational costs.
  
• Space Requirement: The franchise needs a commercial space of around 1000 to 1500 square feet. This space would typically be for a standard KFC Franchise outlet in a busy location, with enough room for customer seating, kitchen equipment, and staff areas.
  
• Franchise Fee: The initial franchise fee to establish a KFC franchise is approximately INR 35 Lakhs (L). This fee grants the KFC Franchise the right to operate under the KFC brand and receive support, including training and operational guidance.
  

These figures are part of the overall investment needed to launch the KFC Franchise, with additional operational costs that will vary depending on location, store format, and other business specifics.

Profits That You Can Expect In KFC Franchise

KFC has numerous fans in India and most people would want to invest in this profitable business once they have ample funds.

The trademark is something to rely on and it comes with a good profit margin as well. The margin can vary according to the size of the store, the outlet, the consumer traffic and so on. 

You can expect a minimum of 20% of the entire sales and the count will be better for sure. But even before investing in a certain brand, you should do your research well. 

To establish your own KFC franchise, you need to follow a structured process. Here’s an in-depth explanation of each step involved:

1: Visit the Official KFC Website

Begin by visiting the official KFC website. Look for the section that allows you to apply for a KFC Franchise. This is typically found under the “Franchise” or “Business Opportunity” tab. The website is the primary platform for starting the application process.

2: Fill Out the Application Form

Once you’ve located the franchise application section, you’ll need to complete an online form. The form will ask for basic information such as:

• Your name
• Contact number
• Email address
• Other personal and professional details as required

This form helps KFC assess whether you’re a suitable candidate for their KFC Franchise program.

3: Eligibility Check

After you’ve applied, KFC will review the details you provided. If you meet the initial eligibility criteria, a KFC representative or franchise manager will get in touch with you.

They will assess your qualifications and discuss the next steps.

4: Franchise Form Submission

If you pass the eligibility check, the next step is to fill out a more detailed franchise form. This form will ask for essential information, including but not limited to:

• Photographs of the proposed location: KFC will need to see the location where you plan to open the outlet to ensure it meets their standards.
• Owner’s name: The name(s) of the property owner(s) where the outlet will be set up.
• Address of the potential KFC outlet: You need to provide the full address of the commercial space.
• Parking space details: Since parking availability is important for customers, this section will ask for details about parking facilities at the proposed location.
• Investment amount: You’ll need to mention how much capital you’re ready to invest in setting up the franchise.
• Owner’s contact details: Information like the phone number and email addresses of the property owner(s).
• Space available: KFC will need to know the total square footage of the location, as there are specific space requirements to set up a KFC outlet (typically 1000 to 1500 square feet).

5: Guidance on Next Steps

Once you have submitted the franchise form, the KFC team will guide the next steps in the process.

They may arrange further meetings to discuss financial plans, store design, training, and other operational matters.

If everything aligns with KFC’s standards, they will provide you with the necessary support to move forward and establish your outlet.

In summary, applying for a KFC franchise involves an online application, verification of eligibility, submission of detailed information about the proposed location, and guidance from KFC executives on the following steps.

Check out this: Waaree Franchise: Cost, Investment Details, and How to Apply

What Are the Eligibility Criteria for Applying to a KFC Franchise?

Sure! Here’s an elaboration on each of these points in a way that sounds natural and in-depth:

1. Managerial Experience is Ideal to Overstep Your Venture

Having prior managerial experience plays a crucial role when running a KFC franchise, or any business for that matter.

Managerial experience equips you with the necessary skills to handle day-to-day operations, manage staff effectively, and make key decisions.

It involves understanding how to organize, plan, and oversee activities, ensuring everything runs smoothly.

This experience also helps you manage financial aspects, maintain inventory, and create efficient work systems, allowing you to handle challenges in the business world.

Without managerial experience, it can be harder to navigate the complexities of operating a franchise, which is why it’s highly valued.

2. Open to Learning

Being open to learning is vital for long-term success, especially in a fast-paced industry like food and beverages.

The world of business is constantly evolving, with new trends, customer preferences, and technologies emerging.

A willingness to learn helps you stay updated with industry changes and adopt new practices that improve efficiency, customer service, and overall business performance.

Whether it’s learning new marketing strategies, staying informed about food safety regulations, or adopting new technologies for inventory management, being open to learning will allow you to adapt and grow as a business owner.

3. Entrepreneurial Spirit

The entrepreneurial spirit is the driving force behind any successful business venture. It refers to the mindset of someone proactive, innovative, and ready to take calculated risks to pursue new opportunities.

This spirit drives you to think creatively, solve problems, and strive for continuous improvement in your business.

It’s about having the passion and persistence to overcome obstacles, create solutions, and grow the business, all while maintaining a positive attitude.

If you have an entrepreneurial mindset, you’re more likely to see the potential in a KFC franchise and take the necessary steps to succeed, even when faced with challenges.

4. Keep Customer Satisfaction on Priority

In the food service industry, customer satisfaction is paramount. It’s essential to ensure that every customer has a positive experience, as this leads to repeat business and strong word-of-mouth marketing.

Customer satisfaction can be achieved through a combination of high-quality food, excellent service, cleanliness, and a welcoming atmosphere.

Listening to customer feedback, addressing complaints promptly, and constantly striving to improve are all key to maintaining high levels of customer satisfaction.

A satisfied customer is not only likely to return but also to recommend your KFC franchise to others, which will help boost your business in the long run.

5. Ability to Train and Develop People’s Skills

As a franchise owner, one of your main responsibilities is to train and develop your staff.

Employees are the backbone of any successful business, and it’s crucial to ensure they are well-trained in both technical skills (like food preparation and customer service) and soft skills (like communication and teamwork).

Effective training programs help ensure consistency in service quality and create an environment where employees feel valued and motivated.

Additionally, investing in employee development fosters loyalty, reduces turnover, and creates a positive work culture, all of which contribute to the overall success of your KFC franchise.

6. A Location of High-Purchasing Capacity Population with a Minimum of 100,000 People

When choosing a location for your KFC franchise, it’s crucial to select an area with a high purchasing capacity. This refers to an area where people have sufficient disposable income to spend on dining out and fast food.

A location with a population of at least 100,000 people is important because it ensures there is a large enough customer base to support the franchise.

A densely populated area with a high concentration of potential customers increases foot traffic and sales potential.

Areas near shopping malls, commercial districts, or college campuses are often ideal as they attract a large number of people with varying spending powers. This location choice maximizes your chances of having a profitable business.

In summary, success in running a KFC franchise (or any business) requires a mix of experience, a positive mindset, commitment to customer satisfaction, and the ability to manage and develop a team.

Furthermore, choosing the right location with sufficient purchasing power is essential to attracting a steady stream of customers.

Documents Needed

To establish your own KFC franchise, you will need to submit several important documents. Below is a list of the necessary paperwork:

• Personal Documents: Aadhar Card and PAN Card
• Passport-sized Photographs
• Post-dated Cheques (if applicable)
• Rental Agreement for the Outlet (if required)
• Bank Passbook
• Brand Franchise Agreement
• GST Registration Certificate
• Income Tax Return (ITR) Documents
• Additional Documents (if requested)

These documents will help verify your identity, financial standing, and business eligibility to proceed with the franchise process.

Final Verdict

Investing in a KFC franchise is undoubtedly a smart move but you need to do it in the right way. If you are careful about your business strategies and funds, you will be able to own a reputable brand franchise yourself.