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Posted on August 4, 2021
KFC franchise in India 2021-22 – Cost, Process & Requirements
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 KFC franchise cost in India.
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. Based on various magazines 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 start a KFC franchise in India, you may require an investment of 1 to 2 crores with a 1,000 – 1,500 Square feet commercial space that meets their guidelines. 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.
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.
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. The approximated 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 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 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
KFC Franchise Cost in India
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 KFC franchise cost in India will be around 1 crore. To know exact how much cost 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, a very important factor which adds a big plus to overstep your business.
- A committed person who keeps the 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 expectation.
- A natural panache to train and develop people to work with them.
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 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 franchisees must attend the training program and must complete it to KFC Franchise 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 franchise costs may assign.
- Training programs of KFC Franchise 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.
How to Apply 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. 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
Relevant contact the KFC Franchise concerned official information if you want to find out more:
Address: Yum! Restaurants International, 12th Floor, Tower-D, Global Business Park, Gurgaon -122002
KFC Franchise Contact Number: 0124-4025100
KFC Franchise Contact Email: email@example.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.
👉Note: we – kanakkupillai.com don’t help with any franchise business opportunities.
Please reach KFC Franchise Contact Number : 0124-4025100 Or KFC Franchise Contact Email: firstname.lastname@example.org for any Franchise related enquiries. 🙏
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