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Franchise Business Plan – KFC

Updated 27.03.24 4 minutes read
Industry Insights

In 2017, Yum! Brands was named to the Dow Jones Sustainability North America Index. The company’s restaurant brands KFC, Pizza Hut, and Taco Bell are the global leaders in the fast-food industry. Yum! Brands have more than 45,000 company-owned, franchised, and licensed restaurants including 4,055 franchised KFC restaurants. About 98.7% of the KFC locations operate under franchise or license agreements. KFC is one of the world’s most popular chicken franchises. Around four million people visit a KFC restaurant in the U.S. every day and around 1.8 billion pieces of chicken are sold each year. Joorney Business Plans Writers have extensive experience in working with investors looking to open a KFC restaurant.

When drafting a Franchise Business Plan for a KFC restaurant, there are several issues to address.

Initial Investment

The minimum financial requirement to open a KFC restaurant in the U.S. is $1.5 million net worth and $750,000 in liquid assets. The start-up expenses include: construction costs (approx. $1,036,000), initial franchise fee ($45,000), development services fee (approx. $17,000), real estate (approx. $700,000), grand opening expense ($5,000), start-up inventory ($10,000), training expenses (approx. $6,950), and miscellaneous operating costs (approx. $7,000). Joorney Business Plans has experience in creating long-term financial projections for KFC restaurants and understands the specifics pertaining to the initial investment requirements.


The average equipment expenses for a KFC restaurant range from $329,000 to $476,000. KFC franchisees must install multiple items including restaurant equipment, furniture, decor items, counters, cash registers, the KFC merit system, small wares, and indoor and outdoor signage. Joorney Business Plans will help franchisees correctly assess and depreciate the value of the equipment in the financial projections.


KFC requires three key holders of a restaurant to attend and complete the KFC’s training program before a restaurant’s opening. Keyholders of the restaurant can include the franchisee, an above store leader, restaurant general manager, or assistant manager. Training ranges from eight to ten weeks and is conducted centrally in Louisville, KY, and in certified training stores. The franchisee is responsible for all costs incurred including travel and lodging of the management team. Joorney Business Plan Writers have experience describing and developing personnel plans and linking the proposed individuals’ training to their designated roles.

Site Selection

Franchisees select the site for their KFC restaurant. Although KFC must approve the proposed site, the approval does not imply that a KFC unit will be successfully operated at the proposed site or that any particular volume of sales can be expected from the proposed location, but only that the site meets the minimum standards set by KFC. The factors KFC considers in approving proposed sites include general location, traffic patterns, market size, visibility, demographics, and competitive locations. Joorney Business Plans assists clients in developing in-depth local market analyses with the expected local demographic and economic trends.

Becoming a part of one of the few brands in America that can boast a rich, decades-long history of success and innovation, presents a great opportunity for all new KFC franchisees.