Kfc

franchise agreement pdf

Kfc franchise fee. Kfc franchise terms and conditions. Kfc franchise requirements.

Kfc franchise rules. Kfc franchise agreement pdf india. Kfc franchise information.

Skip to main content Year Business Began: 1939 Franchising Since: 1952Headquarters: Louisville, KentuckyEstimated Number of Units: 27,760Franchise Description: The franchisor is KFC US, LLC (KFCLLC) whose parent is YUM! Brands, Inc. Franchisees operate a dine-in and carryout KFC outlet, which prepares and sells chicken and other
approved menu items. The Franchise Agreement grants franchisees a license to use (i) certain KFC trademarks, trade names, service marks, logos and commercial symbols the franchisor periodically authorizes, including the “KFC” and “Kentucky Fried Chicken” marks; and (ii) the proprietary business formats, methods, procedures, designs, layouts,
standards and specifications the franchisor authorizes, solely in connection with the operation of the outlet. Training Overview: Franchisees (or if they are an entity, the control person) must attend and complete, to the franchisor’s satisfaction, the initial training program offered by KFCLLC on the operation of an outlet. Franchisees will designate a
key operator, subject to the franchisor’s approval, to complete the Key Operator Restaurant Training. At the franchisor’s direction, other employees of franchisees must attend and complete the training program to KFCLLC’s satisfaction. All training programs will be scheduled, as needed, at KFCLLC's designated national, regional or divisional offices
or other places as the franchisor may designate. Training programs include computer-based training through the franchisor’s Learning Management System program, online learning, written material, on-the-job training at other outlets and classroom instruction. The individual who completes the Key Operator Restaurant Training will train employees
at the outlet. The franchisor may require franchisees and their employees attend and complete additional and ongoing refresher training courses, programs and seminars at such times and locations that KFCLLC reasonably requires. Territory Granted: Franchisees will not receive an exclusive territory. However, so long as franchisees are in
compliance with the Franchise Agreement, they will have a protected territory of the smaller of (i) a radius of 1.5 miles of the outlet, or (ii) an area around the outlet where 30,000 people reside, or, in the case of a metropolitan area containing more than 100,000 people, within which 30,000 people reside or work (the protected territory). The
franchisee’s rights with respect to the protected territory will not be dependent upon achievement of a certain sales volume, market penetration or other performance factors. Within the protected territory, the franchisor will not use, or permit others to use in selling food products, any of the marks that franchisees have the right to use under the
Franchise Agreement, except for (a) special event sales and (b) in some cases, food products (other than chicken in whole pieces) using the name or image of Colonel Sanders. Franchisees may only sell approved products at the outlet except for (i) catering and special event sales and (ii) delivery sales made only in accordance with KFCLLC’s catering
and special events procedures and under a form it requires.Obligations and Restrictions: During the term of the Franchise Agreement, the franchisee or a fully-trained and qualified manager must devote full time to the management and operation of the outlet. If franchisees are a corporation, entity, partnership or have more than one owner, they
must also designate a “Control Person,” who is the individual with the authority to and actively direct the business affairs of a corporation or entity with respect to the outlet. Individual owners and individual owners’ spouses must also sign the Guaranty or Spousal Consent (as applicable) in their individual capacities. Franchisees must sell all required
products as the franchisor periodically designates. Franchisees may not deliver any product from the outlet or anywhere. Franchisees may cater and make sales at special events, only if franchisees meet the franchisor’s catering and special event procedures; and in the case of catering and special event sales involving delivery, sign an addendum
required by KFCLLC. Term of Agreement and Renewal: The length of the initial franchise term is 20 years. If they meet the requirements franchisees can renew but may be asked to sign a contract with materially different terms and conditions than the original contract.Financial Assistance: Yum has entered into an arrangement with a third-party, LS
BDC Adviser, LLC, an affiliate of Lafayette Square Holding Company, LLC (lender), pursuant to which lender (through one or more of its managed or advised funds) may provide financing to qualified franchisee applicants, including low-to moderate income individuals in underserved American communities. In addition to Yum’s arrangement with LS
BDC Adviser, Yum may, but is not obligated to, provide similar lending assistance to qualified franchisee applicants who receive financing from other lenders. Except as described, KFCLCC does not offer, directly or indirectly, any arrangements for financing a franchisee’s initial investment or the continuing operation of the KFC business. Investment
Tables: Estimated Initial Investment Name of Fee Low High Application & Background Check Fee (per person) $575 $2,500 Deposit Fee $20,000 $20,000 Option Fee $25,000 $25,000 Training Expenses $5,000 $8,000 Permits, Licenses, and Security Deposits $50,000 $100,000 Real Property $300,000 $1,100,000 Building & Site Costs $1,000,000
$1,900,000 Equipment, Signage, and Décor, POS & MERIT $375,000 $606,000 Start-up Inventory $10,000 $10,000 Grand Opening Expense $5,000 $5,000 Insurance $7,250 $10,050 Miscellaneous Costs $5,000 $10,000 Additional Funds $50,000 $75,000 ESTIMATED TOTAL* $1,852,825 $3,771,550 *The estimated initial investment range covers new
“traditional” restaurant types.
There is a separate FDD for “express” restaurant types. Other Fees Type of Fee Amount Royalty 4% to 5% of gross revenue or a minimum of $1,350, whichever is greater, per month (minimum fee subject to adjustment based upon the Consumer Price Index). National Co-op (advertising) 4.5% of gross revenue.
Renewal, if applicable $9,000 (subject to adjustment based upon the Consumer Price Index). Transfer to an Existing KFC LLC Franchisee $4,500 for the first outlet and $2,250 for each additional outlet in the same transaction. Transfer to a New KFC LLC Franchisee$9,000 for the first outlet and $4,500 for each additional outlet in the same
transaction. Audit Entire cost of audit, including expenses of auditing personnel. Additional Refresh/Training $500 per person per week. Costs, Expenses and Attorneys' Fees Will vary. Indemnification Will vary. Late Royalty Payments 1.5% per month. Restaurant Operations Compliance Check – comprised of two categories: (1) Food Safety Compliance
Check and (2) Brand Standards Compliance Check Re-evaluation $281.84 to $336.00 per re-evaluation. Support Services and Software Maintenance for KFCLLC's MERIT System Currently $195 per unit/per month. One System Fund Fee $180 per outlet/per month (plus applicable tax and shipping) (reoccurring payments). Digital Fee 3.5% of gross
revenue collected from all digital orders. The above information has been compiled from the FDD of KFC. Year of FDD: 2023.NOTE: FDD pages are provided for informational purposes only. It is an overview of what is contained in the full document, which is to be given to the prospective franchisee by the franchise--and receipt of which must be
formally notarized between the parties. If you are interested in getting in touch with a franchise company, please search our listings via the "Industry" pages accessible from the drop-down menu above.Franchise Direct's DisclaimerYou can click the following links to view all available restaurant franchise, fast food franchise, and food franchise, and
burger franchise opportunities here on Franchise Direct. Thank you for requesting FDD download An error has occurred please try again later Page 2 When the average Joe thinks about the franchise market, they probably think first about food franchising. And for good reason: food is one of the most popular areas of franchising.The food franchise
industry offers a vast array of catering opportunities, inviting a range of investment opportunities; from just a couple of thousand dollars to hundreds of thousands (and beyond). Food franchises offer entry to an established restaurant market, but - actually - that's just the tip of the iceberg. If you're looking for lower investment opportunities, think
about the food vending machine sector or small unit outlets selling specialist delicacies such as pastries, gourmet coffees, and bagels. Everyone needs to eat. Therefore, food franchises will always be in demand. From food trucks and kiosks to full service restaurants and everything in between, the food franchise industry also offers prospective
franchisees a wide variety of ways to chase their business goals in addition to its constant demand.The bedrock of the entire franchise industry, food franchises account for an estimated 30% of the total franchise establishments in the U.S., and nearly 60% of the direct employment by franchises. These figures don’t even include food-related franchises
that are categorized as retail instead of a quick service or full service restaurant.Major food franchise segments include the following: Bakery Franchises: These franchises focus on certain product areas for their business e.g. bread, muffins, bagels, croissants, pastries, donuts and other sweet goods. A number of franchises in this area have menus
that feature other items like sandwiches, soups, etc. to stabilize income.Coffee Franchises: The coffee franchise industry is well-developed and competitive. And there’s no wonder why. Coffee is second only to water in beverage popularity in the U.S., and consumption continues to increase. Many coffee franchises have other sources of revenue—
including baked goods or sandwiches.Fast Food Franchises: With an estimated 25% of total U.S. franchise establishments across all industries, fast food is the most common franchising segment. Food production in fast food restaurants, also known as quick service restaurants (QSRs), is focused on immediate consumption. Fast food meals are
commonly taken out or delivered. However, some fast food franchises offer limited on-site seating.Full Service Franchises: Full service franchise restaurants encompass a range from casual family-style eateries to upscale restaurants. Meals from full service food franchises are typically eaten on-site, although takeout or delivery service may be
provided.Ice Cream & Frozen Yogurt Franchises: The demand for frozen desserts is more evenly distributed throughout the year than it was a few decades ago. Customization has become a feature of many ice cream franchises as those franchises took lessons from the resurgence of the frozen yogurt franchise segment.Juice and Smoothie Franchises:
Franchises in this segment have seen a boost from the general public’s turn towards healthier food options. Furthermore, regulations such as banning soda machines from school have led to franchises, like Jamba Juice, creating vending machines for its wares.Pizza Franchises: Quick and convenient, pizza is a food franchise niche that people can
reliably depend on. Because of that dependability, pizza industry growth isn’t showing any signs of slowing down. And as delivery has come to the forefront as a necessary business component—not a perk—pizza franchises have been showing the way.Retail Food Franchises: Over the past several years, the convenience store industry has challenged
the other food franchise industry segments by increasing its food offerings, particularly the segments that offer quick, on-the-go items. Additional retail food franchises include food gifting businesses, liquor stores and caterers.Vending Machine Franchises: While it’s true many vending machine companies are business opportunities, there are some
franchise options.
The vending machine food franchise segment is a bit of a catch-all grouping with machine-featured offerings going well beyond the traditional snacks and sodas to anything from cupcakes to smoothies.Something to note is franchises can crossover between the given segments. Also, there are several sub-categories within the major categories.Even
before the pandemic put in-venue dining on temporary hiatus, food franchises were finding out what the ice cream man and pizza franchises have long known: customers like delivery. In fact, according to National Restaurant Association data, delivery accounted for 63% of restaurant traffic in cities and other urban areas in 2019.Now, delivery is even
more important to the health of food franchises, especially in the short term.
Most food franchises are currently contracting with third-party delivery companies such as DoorDash, Grubhub, or Uber Eats. However, now that market demand appears to have hit a mainstream and sustainable level, industry analysts suspect more food franchises will begin to do delivery on their own as they gain more knowledge of the process.
Wayback Burgers is one of the first franchises that once used third-party delivery to retrofit delivery into its in-house operation.In addition, there are also food franchises beyond the typical pizza establishments that already have in-house delivery systems. For instance, Jimmy John’s. The sandwich franchise has offered its own delivery since it opened
its doors in 1983.The amount necessary to open a franchise varies depending on the unique business system and execution requirements.The opening costs for a food franchisee can depend on many factors, including but not limited to: the franchise fee, land and building costs, training expenses (such as travel and living expenses, not the actual
training courses), grand opening advertising and marketing costs, and more.One of the most important variables in how much it costs to open a franchise is the type of franchise being opened and how big it is. Commonly, the two types of food franchise offered are traditional and non-traditional. Traditional franchises are usually the biggest option.
They are typically standalone buildings where the service of the franchise is the only business offering. Non-traditional franchises are smaller, and typically located within another building like airports or gas stations. Other food franchise types include kiosks, trucks, and satellites.Franchisors offer estimates in their FDD based upon their experience
establishing, and in some cases operating, units. However, prospective franchisees should keep in mind these estimates are just that—an estimate. Prospective franchisees should review the figures presented with a business advisor, taking into consideration their unique circumstances, before making the decision to enter into a franchise
agreement.With a market as competitive as the food industry, branding is king. The average American household spends almost $2800 each year on food. That’s $233 a month, $54 a week, or around $7.65 each day. Food and drink sales have doubled across the US since 2000, bringing in a total of $800 billion to the US economy. So, there's a LOT of
money to be made from food in the US. The winners are the ones with the marketing budgets - able to cut through the noise of the industry, creating greater visibility than independent companies could ever possibly achieve. Franchising offers an excellent opportunity to benefit from:Established brandingA ready-built reputation of customer
satisfactionInstant curb appealThe reassurance of a known menu.Independent food businesses starting from scratch experience an uphill climb to success - they have to attract customers into their restaurant against the bright lights of the big competitors AND draw them in with an unknown menu. When money is tight, people go for what they know
and can rely on. So, food franchise businesses represent a sound investment, providing the franchisee with instant access to an established customer base and the customer with the reassurance of great food they already love. Most food franchises provide fantastic training opportunities and management programs to bring you - the franchise owner -
up to expert status in your chosen field.
Your parent company will usually lend their experience when it comes to the complex administrative set-up, with a package of ongoing support once you're up and running.Franchises provide instantly recognizable branding, offering immediate curb appeal from the moment you open your doors.Food franchising makes up around 36% of the total
franchise establishments within the United States and 48% of the US franchise industry's annual financial output. Food franchises also account for around 65% of direct franchise employment jobs. You might be surprised to discover that a significant trend in the most popular food franchises is to limit their menu rather than continuously add to it.
Indeed, overly extensive menus tend to imply inadequate production of a wide range of items. In contrast, businesses that specialize and hone their menus, offering few and select items, tend to garner favor with the public. In recent years, convenience stores have become a force within the foodservice sector. Offering up specific zones on shelves and
outlets within their stores, food franchises are thriving, offering a range of on-the-go items that capture the convenience store customer base. The National Restaurant Association expects 1.6 million new restaurant jobs to be created by 2027. Before you go into partnership with a food franchise, you need to source startup funding.

You need to consider which part of the sector you aim to serve: FSR, QSR, or retail. The size of the outlet generally dictates the level of investment you'll be expected to make. Regardless of the size of your initial investment, you can rest assured that moneylenders often favor franchise businesses due to a business model that's been previously proven
successful, sustainable, and profitable. Independent companies often struggle to achieve funding or encounter higher interest rates on startup loans. This is because they can't prove their business model's viability in the way that franchise businesses can.
Going into business without the support of an established partnership compounds the risk in terms of investment returns. Almost half of all indie businesses go bankrupt within the first three years as they struggle to establish themselves in a saturated marketplace. Food franchises, however, can expect to hit the ground running because they can rely
on instant visibility and a menu that customers already know and love. Franchise owners benefit from the expertise and experience of their parent company. They enjoy a headstart in the marketplace due to their curb appeal and experience immediate patronage from an established customer base who already recognize and love the brand.Be spoiled
for choice with our excellent range of food franchises, and help feed our great nation with delightful foodstuffs your customers will love. You can check out many different kinds of food franchises here on Franchise Direct, such as: