KFC Franchise

KFC, a Yum! Brands franchise, has been franchising since 1952 - 22 years after the concept was founded in 1930 , currently with 26,934 total locations in the food & beverage sector, headquartered in KY. The 2024 FDD lists a total initial investment between $1.4M and $3.0M, roughly a 111% gap between the low and high end once site size, local market, and buildout scope are factored in. Included in that number: the franchise fee of $45K, equipment, leasehold improvements, and initial working capital to carry the business through ramp-up.

Royalty payments here are set at 5.0% of gross sales, plus a 5.0% national ad-fund contribution on top -- 10.0% combined out of every sales dollar. Worth noting: KFC is among the roughly one-third of U.S. franchisors that voluntarily disclose financial performance data in Item 19. The reported average gross revenue per location is $1.4M; at that revenue level the typical unit hands back roughly $70K a year in royalty alone. Treat revenue and profit as separate questions: rent, labor, cost of goods, and local demand all determine what a franchisee actually keeps.

Network momentum is currently negative: KFC contracted by 0.4% year-over-year with 700 closures on the record. A shrinking network deserves a closer look -- causes range from market saturation and weak unit economics to franchisee disputes or a deliberate cull of underperforming stores. Ask Item 20 contacts directly why locations closed.