KFC is one of the best running fast food business and has become a worldwide brand that is loved by all, so everyone wants to open up a KFC franchise business so that they can also hop on the success ride of KFC business and make some good money.
But before opening any kind of business one must educate himself on the business plan that will make that business a big success, so in general if you are thinking that just by buying out the KFC franchise one can hop in and enjoy the KFC franchise profits instantly then he is very wrong.
We present you some basic facts and know how about the KFC franchise cost, KFC franchise profits, KFC franchise business plan and everything about KFC franchise that will help you.
KFC Franchise Ownership And Profit
We all wonder about the KFC franchise ownership cost so here it is.
The KFC franchise fee to become a KFC franchise owner is set at a base price of $45,000, with an estimated startup costs is mainly around $1.3 million to $2.5 million (this includes the $45K franchise fee).
A 5% royalty fee on gross monthly receipts is paid to the KFC parent company.
One must also have $1.5 Million in total net worth and $750,000 in liquid assets.
Please note this down that the costs for any franchise are outlined in their Franchise Disclosure Document (FDD) and is regulated by the Federal Trade Commission (FTC).
These general costs have everything from when you sign the agreement to opening the doors and three months of working capital cost.
If you are from any other country then just use the currency calculator and check for the equivalent rates although the amount can differ a little bit.
How Much KFC Franchise Profit Can One Make?
You will encounter difficulty finding store profitability or any factual KFC Franchise profit. Accordingly, we are sharing our 18 years of experience in working with QSRs(quick service restaurant) and fast casual concepts.
If we assume each unit can garner from 6 to 8 percent in profits before income taxes. The basic study shows the typical store can generate from $5.8k to $7.5k per month. Similar to a McDonald’s, KFC will have not-very-good, so-so, good, better, and best months, so that average month will vary throughout the year and so will the overall profit.
As the sale will play a big role in your KFC franchise profit but still you can be confident of making good profit in an around 6 months of starting your KFC franchise.
KFC Franchise Ownership
Please note though that while these criteria might be met by you but it does not necessarily mean that you will be offered a KFC franchise.
Only the best applicants can become a KFC franchise owner, hence the reason that their minimum criteria is set high.
Some basic facts and tips that will help you make get and make your franchise a success.
1. KFC Franchise Owner need to
show that they have the required funds to fund up to 5 or more KFC stores. One
store costs in the region of 5.5 million.
2. KFC Franchise Owner must be
prepared to undertake a training programme that can last up to 6 month and
self-fund themselves through this. This may include visiting an overseas
training facility. You require a 100% pass rate to move on to the next stage.
3. KFC Franchise Owner must have
a detailed business plan and their CV and excellent employment record.
4. KFC Franchise Owner must be
able to demonstrate excellent customer service experience and skills.
5. KFC Franchise Owner must be
able to demonstrate high business acumen (a professional tertiary education
will be beneficial).
6. KFC Franchise Owner must show
leadership and demonstrate being capable of managing multi-stores.
7. KFC Franchise Owner must be
hands on in the business and so anyone looking for an investment opportunity
will be rejected.
8. Previous experience in the food industry or quick service restaurant
industry is essential.
9. KFC Franchise Owner cannot
have an interest in any other food business.
10. KFC Franchise Owner must be
proposed to commit 100% of their working hours in the day-to-day operation of
their KFC business. Applicants need to disclose any other business interests.
11. Applicants must be substantially Broad-Based BEE compliant with
significant direct BEE ownership.
12. KFC Franchise Owner may have
to wait for a considerable time until the right opportunity arises. They also
may need to relocate.
13. As mentioned, no opportunities with KFC are guaranteed and KFC will not
be held responsible for approved franchise owners that do not open a restaurant
for whatsoever reason.
14. KFC Franchise Owner must pay
a non-refundable admin fee as per the rules when they submit their form.
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