Franchise Deep Dive: KFC Franchise Costs, Fees, Profit and Data

The chicken franchise continues to grow, securing its spot as a key leader in the multi-billion dollar fast food chicken market. But, it can cost millions of dollars to break into the network.

By Morgan Wood1851 Franchise Contributor

Updated 1:13PM • 09/18/23

LAST UPDATED: September 18, 2023
FRANCHISE WEBSITE: https://www.kfc.com/franchising
NUMBER OF LOCATIONS: 3,872 franchised units and 47 company-owned units
REPORTED COST TO GET IN: $1,440,600–$3,163,550
REPORTED ROI (Item 19): $1,348,407 average net sales

KFC, the fried chicken concept famous for its secret 11 herbs and spices recipe, first came to be when Harland Sanders started up a restaurant in Corbin, Kentucky. In 1952, Sanders began supporting his friends as they opened their own KFC locations.

According to the brand’s franchise development site, KFC’s first franchisee was who brought the name “Kentucky Fried Chicken,” invented the well-known KFC “bucket” of chicken and coined the phrase “Finger Lickin’ Good!”

Now, KFC is a leader in the over $50 billion fast food chicken space.

How Many KFC Locations Are There?

At the end of 2021, there were 3,872 franchised and 47 company-owned restaurants. According to the brand’s franchise development site, however, there are 24,000 KFC restaurants worldwide, including 4,000 in the U.S.

Entrepreneur’s unit count reflects a growth of 14.7% over the past three years, indicating that the brand is able to not only survive but thrive through circumstances that are often challenging for a business, such as a pandemic or recession.

Yum! Brands, KFC’s parent company, oversees more than 53,000 restaurants across its brands, giving the brand additional backing and security as it continues to expand its global footprint.

What Is the KFC Business Model?

KFC offers a stand-alone, traditional model as well as multiple nontraditional models which can be located in airports, truck stops, military bases, universities, stadiums, tollways, retail stores and more.

Traditional models typically have a sit-down and carry-out service, and many have drive-thrus. Nontraditional build-outs, typically measuring up at about 900 workable square feet, do not follow a traditional sit-down model but rather rely heavily on walk-up service.

How Much Can KFC Franchise Owners Make?

The average net sales statistic reported in the KFC 2022 Franchise Disclosure Document is $1,348,407. Single-brand KFC locations that are company-owned reported average net sales of $1,374,888, and those that were franchised reported average net sales of $1,348,059.

Though data for franchised units is not available, company-owned units reported an average cost of labor of 32.1% of net sales and the average cost of product as 30% of net sales.

How Much Does It Cost To Open a KFC?

The initial investment required to begin the operation of a KFC restaurant varies on the franchisee’s selection between a traditional and non-traditional model.

KFC’s site reports an initial investment of $1,442,600 – $2,771,550 for new builds and $1,008,600 – $2,221,500 for restaurants that are reopened or remodeled. Interested candidates must also have a total net worth of $1.5 million and at least $750,000 in liquid assets.

However, an article that breaks down the brand’s Franchise Disclosure Document reports an initial investment of $1,440,600 – $3,163,550, including the following categories:

Background Check Fee: $350 – $500 per person
Deposit Fee: $20,000
Option Fee: $25,000
Training Expenses: $5,000 – $8,000
Permits, Licenses, and Security Deposits: $50,000 – $100,000
Real Property: $400,000 – $1,100,000
Building and Site Costs: $534,000 – $1,300,000
Equipment, Signage, Decor, POS, and MERIT: $329,000 – $500,000
Start-Up Inventory: $10,000
Grand Opening Expense: $5,000
Insurance: $7,250 – $10,050
Miscellaneous Costs: $5,000 – $10,000
Additional Funds: $50,000 – $75,000

What Is the Franchise Fee for KFC?

KFC’s franchise fee is $45,000. Some outlets report that non-traditional build-outs carry a lower franchise fee of $22,500.

Who Is the Leadership of KFC?

What Helpful Articles Can I Read To Learn More?

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