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franchisekit

welcome
KFC is excited about your interest in joining the team that provides people around the
world with the food that they crave. We hope that this brochure will provide you with
an overview of the information you need and will encourage you to become part of our
team.
KFC has been serving customers complete, freshly prepared, family meals since
Colonel Harland Sanders founded the concept in 1952. As the worlds most popular
chicken franchise specializing in Original Recipe, Kentucky Grilled Chicken and
The Colonels Crispy Strips with home-style sides, Honey BBQ Wings and freshly made
chicken sandwiches, KFC research shows that approximately four million people visit a
KFC restaurant in the U.S. every day. It is estimated that KFC sells 1.8 billion pieces of
chicken each year.
KFC has more than 350 multi-unit franchisees, 150 of which operate more than
five restaurants each. We are now actively seeking additional franchisee prospects
that want to be multi-unit KFC franchise operators, and will commit to building three
units over their first three to five years in the system, or buy restaurants that existing
franchisees may be selling.
The next step in the process is to complete a confidential online application. You will
receive an email from us with a link to this application, and it should only take you 20
to 30 minutes to complete. If you do not receive an email from us within the next few
hours, feel free to call us direct at 502-874-8201.
Thank you for your interest in joining the KFC franchise team!
Sincerely,

Scott Haner, CFE


Director, Franchisee Recruiting

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The KFC Process


This is a brief overview of the timeline for the KFC franchising process. For more
information, please visit www.kfcfranchise.com.

Successfully completing Stage #2 qualifies you as a franchise candidate. Some


candidates build stores, other candidates buy existing KFC restaurants.

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The Investment

The minimum financial requirement to open a KFC or KFC/Taco Bell in the United
States is:
$1.5 million net worth
$750,000 in liquid assets
Item 7 of the Franchise Disclosure Document (FDD) outlines the investment costs
necessary to enter the KFC system. Highlights are as follows:

Type of Expenditure

KFC

KT

Building Construction Costs

$425,000 to $565,000

$440,000 to $590,000

Equipment, Signage, and Dcor

$216,000 to $366,000

$377,000 to $427,000

Site Work

$100,000 to $250,000

$100,000 to $250,000

Miscellaneous Permits, Utility Deposits,


Licenses, and Architectural Costs

$50,000 to $100,000

$50,000 to $100,000

Subtotal Construction

$791,000 to $1,281,000

$967,000 to $1,367,000

Initial Franchise Fee

$45,000

$75,000

Development Services Fee

$0 to $35,000

$0 to $35,000

Real Estate

$400,000 to $1,000,000

$400,000 to $1,000,000

Grand Opening Expense

$5,000

$5,000

Start-up Inventory

$10,000

$10,000

Training Expenses

$3,900 to $10,000

$3,900 to $10,000

Miscellaneous Opening Costs

$5,000 to $10,000

$5,000 to $10,000

Additional Funds

$50,000 to $75,000

$50,000 to $75,000

Total

$1,309,900 to $2,471,000

$1,515,900 to $2,587,000

* Additional information on each of these costs can be found in Item 7 of the FDD.

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FAQs
1 How long will it take to get approved as a franchisee?
Initial qualification involves a series of background checks and interviews and generally
takes 10-12 weeks. After that, site registration and approval can take three to nine months,
but is dependent on when you submit a site for registration.

2 How long will it take to build my restaurant?


Generally, once your site has been approved through the internal site registration process
and you have signed your option agreement, you have eight months to begin construction
and one year to open for business.

3 How much money will I make? What will be my profit percentage? What
are the profit margins of other franchisees? What kind of return on my
investment may I expect?
KFC provides some key cost information in Item 19 in the FDD. Prospective franchisees
are encouraged to use this information as they determine whether they believe a restaurant
may be profitable in their area. Existing franchisees are a resource you can use for more
information. A list of domestic franchise units, the franchisees name and phone number are
listed in the FDD.

4 What kind of training does KFC offer?


Before you open your restaurant, three key holders of your restaurant are required to attend
and complete KFCs training program. Key holders of the restaurant could include the
franchisee, an Above Store Leader, Restaurant General Manager or Assistant Manager.
Training ranges from eight to ten weeks (depending on the unit to be opened) and is
conducted both centrally in Louisville, KY and in certified training stores. There is a fee for
the training and the Franchisee is responsible for all costs incurred including travel and
lodging of the management team.

5 Does KFC provide restaurant financing?


KFC does not provide financing, however, they do provide a list of banks/financing
institutions that have expressed an interest in lending to KFC franchisees. To facilitate
financing, KFC is listed on the SBA Registry and has prepared a Bank Credit Report to
answer loan department inquiries about the KFC/QSR/Franchising business.

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the kfc brand benefits

KFC is the leader in the chicken QSR segment. More than 80 percent of the U.S. KFC
restaurants are owned and operated by franchisees. As a new franchisee, you will align
yourself with a nationally and internationally recognized brand and market share leader.
KFC has been franchising since 1952, with more than 5,200 restaurants in the U.S. and
more than 15,000 units in 109 countries around the world.
As a franchisee, KFC offers you these advantages:
Access to nationally and internationally known products (Original Recipe,
Kentucky Grilled Chicken, Colonels Mashed Potatoes and Gravy, Cole Slaw and
KFC Biscuits) and a proven operating system that sets you up to compete.
Nearly 100 percent consumer awareness of the leading QSR chicken brand in the
U.S. and around the globe.
More than $200 million spent annually by KFC and its franchisees on national and
local advertising, creating strong imagery and promoting products and offers to drive
customers to your restaurant.
A peer network of more than 630 franchisees, more than 35 percent of which have
more than 25 years of experience.
More than 50 years of KFC franchise support and many programs to help you
compete within the QSR and franchise industries.
Access to the United Foodservice Purchasing Cooperative (UFPC), the largest
food-buying co-op in the foodservice industry.