KFC Franchise FDD, Costs & Fees (2025)

Fast-food chain specializing in fried chicken and comfort food, offering a variety of chicken meals, sides, and desserts, delivering a satisfying and familiar taste.

Kentucky Fried Chicken, popularly known as KFC, is an internationally recognized fast-food chain specializing in fried chicken. The company's story began in 1930 when Colonel Harland Sanders started selling his fried chicken from a small restaurant in North Corbin, Kentucky. Sanders created a unique recipe featuring a blend of 11 herbs and spices, which has become the hallmark of KFC's offerings and remains a closely held secret.

The franchising journey of KFC officially started on September 24, 1952, with the opening of the first franchise in Salt Lake City, Utah. Colonel Sanders, born in 1890, was not just the founder but also a prominent cultural figure, known for his iconic white suit and goatee. His image is still a crucial element of KFC's brand identity.

Experiencing rapid growth, Colonel Sanders sold the company in 1964 to a group of investors led by John Y. Brown Jr. and Jack C. Massey. This transition facilitated the company’s expansion and standardization.

KFC's main office is in Louisville, Kentucky, with an additional global management office in Dallas, Texas. As part of Yum! Brands, KFC has expanded to become the second-largest restaurant chain in the world by sales, with numerous outlets in over 150 countries.

KFC has diversified the fast-food landscape by introducing various chicken products, including their iconic bucket meals, and has successfully competed against the dominance of hamburger chains.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

KFC offers 2 types of franchises:

Type of KFC Outlet Initial Investment Range
Reopened or Remodeled Former KFC Outlet $1,052,825 to $2,521,550
Newly Constructed KFC Outlet $1,852,825 to $3,771,550

We are summarizing below the main costs associated with opening a Newly Constructed KFC franchised restaurant. For more information on the costs required to start a KFC franchise, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure Amount
Background Check Fee $575 to $2,500 per person
Deposit Fee $20,000
Option Fee $25,000
Training Expenses $5,000 to $8,000
Permits, Licenses & Security Deposits $50,000 to $100,000
Real Property $300,000 to $1,000,000
Building & Site Costs $200,000 to $650,000
Equipment, Signage, Décor, POS & Required Technology $375,000 to $606,000
Start-up Inventory $10,000
Grand Opening Expense $5,000
Insurance $7,250 to $10,050
Miscellaneous Costs $5,000 to $10,000
Additional Funds $50,000 to $75,000
Total (convert or remodel brand) $1,053,000 to $2,522,000
Total (to construct new Outlets) $1,853,000 to $3,772,000

Franchise Disclosure Document

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Competitors

Below are some of

KFC

key competitors in the

Chicken

sector.

Started franchising
Franchisees

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Franchise fee

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Royalty fee

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Investment

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Revenue (AUV)

?

Gross Profit

?

EBITDA

?

Home-based

?

Passive investment

?

FDD
KFC
1952
3558
+
-7%
-7%
$45,000
4% - 5%

$1,053,000

-

$3,772,000

$xxx,xxx

n.a.

$1,414,000

66.3%

xx%

n.a.

n.a.

xx%

n.a.

No
Upgrade
No
No
Upgrade
No
2022
2
+
n.a.
n.a.
$30,000
5.00%

$478,000

-

$834,000

$xxx,xxx

n.a.

$1,073,000

n.a.

xx%

n.a.

n.a.

xx%

n.a.

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Upgrade
2023
0
+
n.a.
n.a.
$50,000
6.00%

$418,000

-

$1,000,000

$xxx,xxx

n.a.

$1,854,000

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Upgrade
Upgrade
2002
38
+
-19%
-19%
$35,000
5% - 8%

$192,000

-

$795,000

$xxx,xxx

n.a.

$0

n.a.

xx%

n.a.

n.a.

xx%

n.a.

No
Upgrade
No
No
Upgrade
No
2022
5
+
n.a.
n.a.
$40,000
6.00%

$206,000

-

$688,000

$xxx,xxx

n.a.

$0

n.a.

xx%

n.a.

n.a.

xx%

n.a.

No
Upgrade
No
No
Upgrade
No
2004
30
+
-3%
-3%
$40,000
5.00%

$408,000

-

$1,233,000

$xxx,xxx

n.a.

$1,802,000

63.4%

xx%

n.a.

14.9%

xx%

n.a.

No
Upgrade
No
Yes
Upgrade
Yes
2010
21
+
0%
0%
$25,000
5.00%

$358,000

-

$2,699,000

$xxx,xxx

n.a.

$0

n.a.

xx%

n.a.

n.a.

xx%

n.a.

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$49 / month
Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

?

Profit margin

?

Franchise Disclosure Documents
Advanced filtering and sorting
Watchlist

?

Priority support

?

A comprehensive and transparent look at franchising finances. The inclusion of profit margins and disclosure documents offers insights you can’t find elsewhere. Essential for anyone considering a franchise investment.

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Franchisee

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Training 

The training program for KFC franchisees is meticulously designed to equip franchisees and their key operators with the necessary skills to manage a KFC outlet effectively. The initial training program includes a New Franchisee Immersion Program, where participants gain insights into KFC's history, understand its organizational structure, and meet with KFCLLC partners. 

Above Restaurant Leader Training encompasses restaurant orientation, customer service team member training, packing and food safety protocols, restaurant operations compliance, leading food quality, cooking and projections, enhancing guest experience, managing restaurant finances, and MERIT basics.

Key Operator Restaurant Training involves collaboration with a Franchise Business Coach on an onboarding plan, a restaurant visit and training plan overview, and an intensive 5-week training covering service mastery, chicken mastery, preparation of sides, freezer to fryer products, compliance with hazard communications, current promotional eLearning, and state-required food handler training.

KFCLLC also provides a web-based Learning Management System (LMS) that delivers essential training processes and tracks the completion of training for restaurant employees.

Territory Protection

Franchisees are granted the right to operate a KFC Restaurant within a defined area known as the "Protected Area." Within this area, franchisees are required to develop and operate the Franchised Restaurants. While there are certain territorial rights associated with the Protected Area, these rights do not ensure exclusivity.

Franchisees may encounter competition from other franchisees, Company-Owned Outlets, or other distribution channels or competitive brands controlled by KFCLLC.

However, within the Protected Territory, KFCLLC will not use, or allow others to use, any of the Marks that franchisees are authorized to use under the Franchise Agreement for selling food products.

Number of units

2025
Franchised units

3842

3715

3558

Company-owned units

46

46

80

Total units

3888

3761

3638

Competitors

Chuck's Hot Chicken

Franchisees

?

2
+
n.a.
n.a.
Investment

?

$478,000 - $834,000

Angry Chickz

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$418,000 - $1,000,000

WOW American Eats

Franchisees

?

38
+
-19%
-19%
Investment

?

$192,000 - $795,000

HCK Hot Chicken

Franchisees

?

5
+
n.a.
n.a.
Investment

?

$206,000 - $688,000

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