Guide on the Franchise Fee & Initial Investment Cost Under KFC Franchise
KFC FRANCHISE – Here is a guide on how much you should prepare for the franchise fee and the initial investment cost.
Not only in the United States but as well as in other countries including the Philippines, the Kentucky Fried Chicken or more commonly called as KFC is one of the top fast-food chains. A lot of people like the delicious meals served by this food business.
KFC serves its signature fried chicken, sandwiches, desserts, fries, and a lot more. Once in a while, it also got special food offers for the public and these limited offers never fail to make the people want it to be regularly on the menu.
These are just few of the reasons why a lot of businessmen prefer a KFC franchise. However, a thorough financial preparation is also needed in franchising this food business. It has other requirements apart from the franchise fee and the total initial investment cost is high.
Based on an article on Business Insider, the company behind Kentucky Fried Chicken got net worth requirements for operators. A franchisee must have at least $1.5 million (Php 75,000,000.00) total net worth and $750,000.00 (Php 37,500.00) in liquid assets.
Under the KFC franchise, here are the franchise fee, the building and equipment costs, and the total initial investment costs:
- Franchise Fee – $45,000.00 (Php 2,250,000.00)
- Building & Equipment Costs – $695,000.00 to $1.2 million (Php 34,750,000.00 – Php 60,000,000.00)
- Total Initial Investment Costs – $1.3 million to $2.5 million (Php 65,000,000.00 – Php 125,000,0000.00)
Based on the article, citing the QSR reports, KFC restaurants has an average annual sales of $942,000.00 (Php 47,100,000.00). The aforementioned amounts are applicable in US franchising thus there might be some changes when it comes to other countries.
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