How can I run KFC franchise?
Society that owns Kentucky Fried Chicken (KFC), Yum! Brands Inc., sets out the requirements that a potential investor must meet to open KFC franchise. While KFC franchises can be quite lucrative for their owners, the opening of the franchise can be demanding due to significant time, required effort and investment. Requirements include a large initial investment of at least $ 1 million in the US (USD); Investors must also have considerable liquid assets and be able to pay a franchise fee. Restaurants must also be approved by the parent company and the owners of the franchise must commit to a 20 -year agreement.
kfc's parent organization, yum! Brands, Inc., is a network of restaurants that include TACO Bell, Pizza Hut and Long John Silver. With more than 80% of all KFC places that own and run individual owners, yum! Brands support franchising opportunities. However, to qualify for KFC franchise, potential owners must meet the requirements with the stringent.
start fKFC ranch is not cheap. A initial investment of about $ 1 million or more is required to cover construction costs and equipment. Many individuals use third -party creditors to finance these launch costs like yum! Brands, Inc. It does not offer any type of financing for its franchising program.
Potential franchises must also have a net fortune of about $ 1 million in the US (USD), along with substantial liquid assets in the range of millions of dollars. Franchise owners must also pay a franchise fee and a monthly service fee, which is the percentage of gross selling the restaurant as soon as it opens to the public. In addition, an annual recovery fee must be paid annually and 20 years of agreement are required.
Due to many restaurants that own Yum! Brands, Inc., the company strongly emphasizes multi-brands. The franchise must Commitate for construction or handling with three other restaurants for T periodRome years. In some cases, two of these restaurants can be combined into one unit, such as the Taco Bell/KFC restaurant. In addition, a minimum percentage of gross sales of franchise must be spent on advertising.
As soon as the applicant's assets have been verified, Yum must meet! Representatives of brands for discussion on the location of the restaurant. The restaurant will be often built and the franchise owner simply negotiates the purchase contract for the place. If the store is not available for purchase, the owner and representative of the company must select the construction site for the new KFC franchise.
In order to minimize the impact of sales on existing places, a new franchise must be at least 1.5 million or at least 30,000 people, from any other KFC. The construction cannot start until the website is approved by the company. Once the location is deleted for development, applies eight months to complete construction and one year to open.
Like most franchises, KFC franchises receive all products, training and branding from their parent SPOlečnosti. However, every franchise owner is responsible for all construction and hiring costs. From the beginning to the end, the whole process of qualifying franchise KFC takes about a year.