KFC Franchise Cost in India 2021-22 ? How to Start & Requirements ? (2024)

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KFC Franchise Cost in India 2021-22 ? How to Start & Requirements ? (1)

Are you planning to start a KFC franchise business in India? Are you interested in starting a food business or retail food business? If Yes, then read this article to get the complete information on why and how to apply for a KFC franchise and how much a KFC franchise cost in India.
Yes, the KFC franchise business is one of the undoubtedly profitable and rewarding options for people who are planning to start a retail-based food service franchise opportunity in India. But before stepping in, just analyze and decide based on your skills, interest, experience, and knowledge whether this KFC franchise business opportunity fits you.

👉Note: we – kanakkupillai.com don’t help with any franchise business opportunities.
Questions ? Please Reach KFC Franchise Representative Mr. Chris Brown – Email:Christopher.Brown@yum.com
Phone:843-991-9759 🙏 https://www.kfc.com/franchising/join-us

The franchise fee to become a KFC franchise owner is $45,000, with estimated startup costs totals ranging between $1.2 million and $2.5 million. A 5% royalty fee on gross monthly receipts is paid to the company. Based on various magazine estimates KFC is able to make a good profit ranging from 7% to 8% of the total sales. Total Profit is estimated to be $70,000 to $90,000 per year/per store. Also if we consider monthly figures then a store can garner a good amount of monthly profits ranging from $5.8k to $7.5k per month.

To open a KFC outlet, you need to check the official website. Go to the established KFC website, and click the “Contact Us” option. Choose the Franchise option and fill out the application form. However, existing KFC franchisees may elect to sell their businesses, and it is therefore possible to become a new KFC franchisee by purchasing an existing KFC business. According to the latest franchise data available from KFC, new franchise owners could expect to pay close to R6 millionfor a new franchise.

To start a KFC franchise in India, you may require an investment of Rs 98 Lakhs to Rs 2 crores with a 1,000 – 1,500 Square feet commercial space that meets their guidelines. Also, Rs 38 lakhs is required as a franchise fee to become a KFC franchise owner in India and there will be a 4-5% royal commission on the actual sales.

For getting its franchise, you would need a minimum investment of 20 lakhs; in this, the franchisor would give you the marketing service. Plus, you also need a floor space of 1000Sq Ft. In a prime business area to establish the inventory for the products. As an individual unit, KFC makes about $942,000 – $1,000,000 per year. Although Yum! Brands keep their franchise owner’s salaries private, it can be estimated that owners take home roughly $120,000 a year, based on average food franchise owner salaries.

The food Franchise Agreement of KFC Corporation grants the franchisees a license to use certain KFC trade names, trademarks, logos, service marks, and commercial symbols such as the “KFC” and “Kentucky Fried Chicken” marks as per the authorization provided in the franchisor periodically.

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With more than 40,000 locations in over 130 countries and union territories and more than one million employees and associates, KFC or Kentucky Fried Chicken stands at the top in a food restaurant companies. The approximate investment needed to start a KFC franchise in India will be around 1 crore. Actually, KFC’s parent company is Yum! Brands, Inc. and it is one of the world’s largest restaurant companies in the system restaurants category. Yum! is one of the restaurants that ranked number 201 on the Fortune 500 List, with grosses of nearly 100 crores in 2012.

The franchisor of KFC Corporation operates a dine-in and carryout KFC outlet, in which the food items are prepared and sold. They only sell chicken and other menu items which KFCLLC approves. The food Franchise Agreement of KFC Corporation grants the franchisees a license to use certain KFC trade names, trademarks, logos, service marks, and commercial symbols such as the “KFC” and “Kentucky Fried Chicken” marks as per the authorization provided in the franchisor periodically and the franchisee is also allowed to use the proprietary business formats, procedures, methods, designs, standards, layouts and specifications that the franchisor grants authorization, purely in connection with the operation of franchise Outlet.

Why KFC Franchise Business?

  • KFC Franchise is in much demand since KFC is the biggest and most popular US-originated Quick Service Restaurant chain in the world.
  • It is a subsidiary of Yum! Brands.
  • KFC is the world’s most famous chicken restaurant chain that specializes in Original Recipes.
  • Some of their trademark registration food items are Extra Crispy Chicken, Chicken Popcorn, KFC Hot Grilled Chicken, Kentucky Grilled Chicken, Extra Crispy Strips, Extra Crispy Boneless, and so on, with freshly made chicken sandwiches and home-style sides, Hot Wings, and what more a food lover can ask.
  • KFC has successful years of experience in creating a strong franchise-led outlet model around the world, and it is more famous in India.
  • With about 335 restaurants in over 100 cities in India, KFC is undoubtedly a profitable business and also it is a rewarding opportunity for an individual to be a franchisee of KFC Business Network.

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If you are planning to start a KFC franchise outlet in India then you should know the following points:

  • Kentucky Fried Chicken or KFC started its first franchise outlet in Utah in 1952.
  • KFC is a subsidiary of Yum! Brands that also own the following food restaurants Taco Bell, WingStreet, Pizza Hut, and the list goes on.
  • KFC is one of the well-established food restaurants in India, and it’s generally more expensive, as a KFC franchisee’s price is more when compared with opening a McDonald’s franchise outlet.
  • The franchise operations of KFC are operated by their respective area developer and master franchises and it is not that easy to get a franchise from KFC in India. They typically would be happy to grant the franchise opportunity if the individual has a good space and the right location to open its outlet. They usually approve their partner with a franchise model based on rent + revenue

KFC Franchise Cost/Price in India

KFC Franchise Cost in India 2021-22 ? How to Start & Requirements ? (2)
KFC is more expensive and needs high investment to start a franchise business opportunity. In the United States, the KFC Franchise candidates must invest about $750,000 in liquid assets and $1.5 Million in total net worth. KFC franchise cost in Indiagrants only multi-unit franchisees due to its expensive investment.

If the individual wants to get the KFC Franchise Unit, definitely he should hold a high financial capacity to invest and should also have strong retail and real estate participation. If you own premises in a good locality of tier 1, tier 2, and tier 3 cities then you can apply for a KFC Franchise Unit in India, the company might consider your application to lease your property for their outlet.

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The approximate KFC franchise Price in Indiawill be around 2 crores. To know exactly how much cost is required to open a KFC Restaurant, You should visit their Official KFC Franchise Website. Apart from investment and funding, you also need the following factors to match the growth of the KFC franchise unit:

  • Managerial experience is a very important factor that adds a big plus to overstep your business.
  • A committed person who keeps customer satisfaction on high priority.
  • A real spirit of an entrepreneur.
  • A burning passion to run in the business marathon.
  • A commitment and sincerity to satisfying the customers’ high expectations.
  • A natural panache to train and developpeople to work with them.

KFC franchise application form India

To fill out the KFC Franchise application form, Visit the KFC website, click on the ‘contact us option, and then select thefranchiseoption

and fill the form then submit.

Download here – KFC franchise application form India

Training Overview of KFC Franchise Company

  • As per the KFC terms and conditions, the franchisees may be an entity or a Control Person must attend the initial training program provided by KFCLLC on “How to operate an Outlet” and must complete the training program to the franchisor’s satisfaction.
  • The designation of the key operator should be occupied by the franchisees to complete the Key Operator Restaurant Training program given by the KFC Franchise company.
  • Under the franchisor’s guidance and direction, the other employees of the franchisees must attend the training program and must complete it to the KFC Franchise Company’s satisfaction.
  • All the training programs are scheduled as per the need and they will be done at KFCLLC’s designated national, regional or divisional offices or other places in which the franchisor of KFC franchise costs may assign.
  • Training programs of the KFC Franchise company include computer-based training programs via its Learning Zone program, written notes, and on-the-job training program at various KFC Outlets and classroom instruction.
  • The person who finishes the Key Operator Restaurant Training program provided by KFC will train other employees at their Outlet.
  • Further, the franchisor may call for franchisees and their employees to pay heed and complete the additional and ongoing training or refresher course, meetings, programs, and seminars at times in different locations that KFC Company reasonably requires.

Territory granted by KFC Company to their Franchise

Generally, franchisees will not get exclusive territory but as long as they are in compliance with the company’s Franchise Agreement, they will have a protected location in the smaller of
(i) a radius of 2.5 Km of the Franchise unit, or
(ii) a location in which about 30,000 people reside around the shop, or, if it is a location in a metropolitan area then it should contain more than 100,000 people.

The franchisee’s rights with regard to the Protected Territory will not be subject to the achievement of any performances such as market penetration, certain sales volume, and so on. Within the Protected Territory, KFC Company will not allow the franchisee to use or permit to sell any food products other than approved food products and it is strictly mentioned under the Franchise Agreement.

Term of Agreement and Renewal of KFC franchise: The time period of the initial franchise term is about 20 years. If the franchisee meets the company’s requirements, they have the option to renew their franchise under certain terms and conditions.

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How to Apply for KFC Franchise online in India

To start a KFC franchise unit, you have to apply on their official website https://www.kfc.com/about/franchising.

Step 1: Go to the official KFC website, at the right bottom of the page, you can see the “Join Us” option, click on that https://www.kfc.com/franchising/join-us.

Step 2: Select the Franchise option

Step 3: and fill out the application form and proceed further by entering and submitting other mandatory fields, such as name, contact number, and other needed details.

list of other details to be filled in the franchise form:

  • Space available
  • The amount that you can invest in
  • Name of the owner/s of the property
  • Contact details of the owner
  • Address of potential KFC store
  • Photographs of the location
  • Details of parking space

What are the Terms of the Agreement and Renewal of the KFC Franchise?

As per Terms of agreement of KFC Franchise, It is 20 years at initial. It can be renewed later when it meets the Company’s requirement.

Contact the KFC Franchise concerned official information if you want to find out more:
KFC Franchise Contact Number: KFC Franchise Representative Mr. Chris Brown – Phone:843-991-9759
Apply for KFC Franchisehttps://www.kfc.com/franchising/join-us
KFC Franchise Contact Email: Christopher.Brown@yum.com
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KFC Franchise Cost in India 2021-22 ? How to Start & Requirements ? (2024)

FAQs

How much money required to open KFC franchise in India? ›

Capital Investment for a KFC Franchise in India

The estimated start-up cost can range from ₹ 96 lakhs to ₹ 2 crores. Also, ₹ 36 lakhs is required as a franchise fee to become a KFC franchise owner in India. In addition, a royalty fee of 5% is needed to be paid to the company on gross monthly receipts.

What are the financial requirements to open a KFC? ›

Personal & Financial Reputation and Stability

What are the minimum financial requirements for franchisees? Candidate must have $1.5 Million in total net worth and $750,000 in liquid assets.

What do you need to open a KFC franchise? ›

KFC requires franchisees to have $1.5 million net worth and $750,000 liquid assets to apply for a store. Collect your financial information and income tax records and meet with a business lender to prequalify for a franchise loan. Next, determine the focus for your KFC franchise.

What is the initial startup cost for KFC? ›

Kentucky Fried Chicken Franchise Cost and Franchise Requirements. The franchise fee to become a KFC franchise owner is $45,000, with an estimated startup costs totals ranging between $1.2 million and $2.5 million. A 5% royalty fee on gross monthly receipts is paid to the company.

How can I open a KFC store in India? ›

For the commencement of a KFC franchise in India, a hefty investment of INR 1 – 2 Cr with a space requirement of 1000 – 1500 sq. ft. is needed. The franchise fee required to establish a KFC franchise is an estimated sum of INR 35 L.

How much profit do KFC owners make? ›

Indeed, unlike most other franchises, KFC does give a lot of information about the financial performance of its franchised restaurants. On average, a KFC franchisee makes $122,000 in profits per year (7% EBITDA margin).

Is KFC a good franchise to own? ›

Investing in a KFC franchise may prove to be lucrative. According to the FDD, the average net sales of a single-brand, franchise-owned KFC in 2018 was $1,159M. This included 2,863 stores but did not include nontraditional, multi-brand, seasonal or any type of KFC location other than a single-brand location.

How much does a single KFC make a year? ›

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.

Is KFC a good franchise? ›

WE'RE ALSO KIND OF A BIG DEAL

Franchises have built our reputation in large part due to visibility and trust. In fact, almost every week 185 million people see a KFC commercial. That's more than half of the United States population. That enormous reach and award-winning marketing give franchisees a huge advantage.

What is KFC franchise fee? ›

For non-traditional KFC outlets, KFC charges an initial license fee of $22,500. For traditional KFC franchise agreements, the franchise (or initial license) fee is $45,000 split into the deposit fee and the option fee.

How long is a KFC franchise agreement? ›

Term of Agreement and Renewal: The length of the initial franchise term is 20 years.

How much does a McDonald's franchise cost? ›

McDonald's franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee. Those looking to launch a new McDonald's franchise can expect to shell out between $1,314,500 and $2,306,500.

How much is franchise opening fee? ›

The Franchise Fee

It also typically includes initial training costs and those associated with location development. All franchise fees are at least $500 by law, but most range from $10,000 to $50,000. They of course differ between franchise brands, and even more so between industries.

What is initial franchise fee? ›

The initial franchise fee is a one-time fee you pay to a franchisor to enter the franchise system. It gives you access to the franchisor's proprietary business systems and the license to own and operate the business.

How much are franchise startup fees? ›

Frequently asked questions about franchise startup costs

Franchise startup costs can be as low as $10,000 or as high as $5 million, with the majority falling somewhere between $100,000 and $300,000. The price all depends on the industry, location and type of franchise.

Is KFC franchise profitable in India? ›

The KFC franchise offers excellent financial potential and is a rewarding and successful business. Yes, if you're looking to launch a retail-based food service franchise in India, KFC is unquestionably one of the most lucrative and satisfying possibilities.

Is KFC successful in India? ›

KFC Become Successful In India

The Indian government enforced the LPG policy in the 1990s, and KFC became the first foreign fast-food chain to enter India. Fast food restaurants have grown in popularity in India over the years due to their customised, ready-to-eat menus for people on the go.

Who owns KFC franchise in India? ›

KFC (Kentucky Fried Chicken) in India is operated by Yum! Brands, which is the parent company managing the KFC brand globally. In India, KFC has its own subsidiary known as "Yum! Restaurants India Pvt.

How much a McDonald's franchise cost in India? ›

The average franchise fee for a McDonald's franchise stands at INR 25 – 30 L. The advertising cost and royalty fees stand at 3% and 4% – 6% of gross sales respectively. The ROI/Break Even time frame is 2 – 3 years and the area requirements are 750 – 1500 sq. ft.

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