KFC (Kentucky Fried Chicken) is a fast food restaurant chain that specializes in fried chicken and is headquartered in Louisville, Kentucky, in the United States. It is the world’s second largest restaurant chain (as measured by sales) after McDonald’s, with 18,875 outlets in 118 countries and territories as of December 2013. The company is a subsidiary of Yum! Brands, a restaurant company that also owns the Pizza Hut and Taco Bell chains.
KFC was founded by Harland Sanders, an entrepreneur who began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the potential of the restaurant franchising concept, and the first “Kentucky Fried Chicken” franchise opened in Utah in 1952. KFC popularized chicken in the fast food industry, diversifying the market by challenging the established dominance of the hamburger. By branding himself as “Colonel Sanders,” Harland became a prominent figure of American cultural history, and his image remains widely used in KFC advertising. However, the company’s rapid expansion saw it overwhelm the ageing Sanders, and in 1964 he sold the company to a group of investors led by John Y. Brown, Jr. and Jack C. Massey.
KFC was one of the first fast food chains to expand internationally, opening outlets in Canada, the United Kingdom, Mexico, and Jamaica by the mid-1960s. Throughout the 1970s and 1980s, KFC experienced mixed fortunes domestically, as it went through a series of changes in corporate ownership with little or no experience in the restaurant business. In the early 1970s, KFC was sold to the spirits distributor Heublein, who were taken over by the R.J. Reynolds food and tobacco conglomerate, who sold the chain to PepsiCo. The chain continued to expand overseas however, and in 1987 KFC became the first Western restaurant chain to open in China. The chain has since expanded rapidly in China, which is now the company’s single largest market. PepsiCo spun off its restaurants division as Tricon Global Restaurants, which later changed its name to Yum! Brands.
KFC’s original product is pressure fried chicken pieces, seasoned with Sanders’ recipe of 11 herbs and spices. The constituents of the recipe represent a notable trade secret. Larger portions of fried chicken are served in a cardboard “bucket”, which has become a well known feature of the chain since it was first introduced by franchisee Pete Harman in 1957. Since the early 1990s, KFC has expanded its menu to offer other chicken products such as chicken fillet burgers and wraps, as well as salads and side dishes, such as French fries and coleslaw, desserts, and soft drinks, the latter often supplied by PepsiCo. KFC is known for its former and current slogan “Finger Lickin’ Good”, which was replaced by “Nobody does chicken like KFC” and “So good” in the interim.
Process how to own a KFC franchise
1.) Qualification – in this stage KFC will review the franchisee’s application, verification of assets and interest, credit checks will be done. During this stage the interested franchisee should then accomplish the Franchise Disclosure Document receipt.
2.) Operation Interviews – KFC will conduct interviews and discuss the operating plan. The Franchisee prospect will also be having a half day store experience. If the Franchisee Prospect meets all the qualifications they will then be a Franchisee candidate.
3. Site Strategy Exploration- during this stage KFC will then discuss the requirements needed and will then determine the site selection strategy that will equip a Franchisee candidate in looking the best site for his store.
4.) Securing Site Control-this is the stage where the priorities are established, negotiations for site will undergo and endorsement of action plans will all be plotted.
5.) Site Registration/ Approval- in this stage KFC will then determine if the proposed site is clear for business growth.
1.) Franchise On boarding- KFC will provide trainings, share expertise in running a KFC franchise and of course KFC will support the Grand Opening of your new KFC franchise.
Requirements and Qualifications:
Every business needs a capital to fuel it; a franchisee needs to have at least Personal Net Worth of $1.5M and $750M in liquid assets.
KFC franchise Fee
KFC Franchise fee will take around $45,000, but if you wish to open a multi brand restaurant it will be $75,000, 5 percent of Gross Sales will be the amount of the monthly service fee or royalties same with the amount a franchisee needs to pay for advertising which already includes the national and local contributions.