What is the cost of a KFC franchise in India 2020? How to Start & what are the requirements needed?
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 of why and how to apply for KFC franchise and how much it costs to start a KFC franchise.Get FREE Consultation on Franchise Agreement
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 on the top in food restaurant company. 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 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 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 is the biggest and 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 Recipe.
- Some of their trademark 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.
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 which also own the following food restaurants Taco Bell, WingStreet, Pizza Hut and the last goes on.
- KFC is one of the well established food restaurants in India, and it’s generally more expensive, as KFC franchisees 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 right location to open its outlet. The usually approve their partner with a franchise model based on rent + revenue
Investments Required for Opening a KFC Franchise Unit
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 India grants only multi-unit franchisees due to its expensive investment. If the individual who 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.
The approximated investment needed to start a KFC franchise in India will be around 1 crore. Apart from investment and funding, you also need the following factors to match the growth of the KFC franchise unit:
- Managerial experience, a very important factor which adds a big plus to overstep your business.
- A real spirit of an entrepreneur.
- A burning passion to run in the business marathon.
- A commitment and sincerity to satisfying the customers’ high expectation.
- A natural panache to train and develop people to work with them.
Training Overview of KFC 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 key operator should be occupied by the franchisees to complete the Key Operator Restaurant Training program given by the KFC company.
- Under the franchisor’s guidance and direction, the other employees of franchisees must attend the training program and must complete it to KFC Company’s satisfaction.
- All the training programs are scheduled as per the need and it will be done at KFCLLC’s designated national, regional or divisional offices or other places in which the franchisor of KFC may assign.
- Training programs of KFC company include computer-based training program 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 of 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 regards to the Protected Territory will not be subject upon 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 an option to renew their franchise under certain terms and conditions.
Apply KFC Franchise online
To start a KFC franchise unit, you have to apply on their official website https://www.kfc.com/about/franchising. Go to the official KFC website, at the right bottom of the page, you can see the “Contact Us” option, click on that https://online.kfc.co.in/contact-us. Select the Franchise option and fill the application form and proceed further by entering and submitting other mandatory fields, such as name, contact number and other needed details.
Other details are:
- 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
Or, you can also directly contact the concerned official to discuss your business proposal
Deputy Manager – Business Development Yum!
Restaurants ( India ) Pvt. Ltd.
Global Business Park Tower D,
12 Floor Gurgaon – 122002,
India.Get the Best business plan ideas for all businesses
KFC Franchise Contact Number: 0124-4025100
Email Contact: franchise.india at yum.com.
Yes, KFC franchise business is one of the undoubted 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.
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