KFC Franchise Cost in India [Investment, Profit]

. 7 min read
KFC Franchise Cost in India [Investment, Profit]

Want to be a part of the fast-food chain business? How about starting a KFC franchise in India? Clueless about the process and KFC Franchise Cost in India? If yes, then continue reading this article to get the complete information.

KFC is the biggest fast-food chain spreading across the globe, just second to McDonald's.

The American fast-food restaurant continues to grow from its initial franchise restaurant in 1952 to around 23 00 outlets in more than 140 nations today.

First, what KFC is all about?

Kentucky Fried Chicken (KFC) opened its initial franchise outlet in Utah, the USA, in 1952.

Now, KFC is a subsidiary of Yum! Brands, the multinational corporation that owns famous fast-food chains such as Taco Bell, Pizza Hut, etc.

KFC is one of India's widespread and established eateries, and it's often more costly since its franchise cost is higher than starting a McDonald's franchise outlet.

The corresponding domain developer and master franchises operate the franchise procedures of KFC, and it does not seem easy to obtain a license from KFC in India.

In general, the developers and master franchisees would impart the franchise opportunity if you have decent space and the appropriate location to start the outlet.

Often, they approve their associate with a franchise model, depending on return or rent.

Keep in mind KFC operates both in Equity owned as well as Franchise owned models in India. Currently, it is running 90% of its 400 outlets on the franchise model.

In India, Yum! Brands work through three franchise partners- Sapphire Foods, RJ Corp-owned Devyani International, and Burman Hospitality.

Sapphire Foods and Devyani International essentially concentrate on KFC and Pizza hut brands. They have nearly 800 KFC and Pizza Hut eateries across India.

If you want to open an outlet alone, getting a KFC Permit would be challenging.

KFC Franchise Cost in India

Generally, to commence a KFC franchise in India, you probably need an investment of around Rs. 1-2 Crores with a 1,000 – 1,500 sq. ft. in a commercial area that matches its guiding principles. Also, it charges a 4-5% royal commission on the actual sales.

For obtaining its license, you require the minimum investment of 20 lakhs, in which the franchisor will provide you with the marketing provision. In addition, you need to have a floor space of 1000 sq. ft. in a highly lucrative commercial area to confirm the list for the goods.

Therefore, the approximated KFC Franchise Cost in India will be about one crore. To understand the exact and ways to open its outlet, check the official KFC Franchise website.

The food Franchise Agreement of KFC Corporation confers the franchisers with permission to adopt KFC business names, logos, service marks, and commercial representatives regularly, like "KFC" and "Kentucky Fried Chicken" labels according to the permission granted to the franchisor.

Fees and percentages required to open a KFC franchise outlet

You must pay the whole capital to start the Franchise and develop your outlet. Then, based on your investment and funding sources, the primary franchisors will decide the levels of franchisee you can get.

You must pay 5% of the total earnings as royalties and 5% as promotional expenses. Besides, following 2 to 3 years of running the outlet, you need to resume the Franchise.

So, why KFC Franchise?

KFC is the largest and widespread fast-food chain in the world. It is a subsidiary of Yum! Brands.

It is the world's most well-known chicken eatery chain that concentrates on the Authentic Recipe.KFC has thriving years of expertise in building a robust franchise-led outlet design across the globe, and it is re-known in India.

Operating around 400 restaurants in more than 100 cities in India, KFC is unquestionably a lucrative business and a worthwhile chance for you to be a franchisee of KFC.

Advantages of running KFC franchise

After running an outlet, you would receive three times revenue within a year. How amazing! But it is dependent on the type of franchisee you operate. It is easy and more beneficial to start a KFC franchise in the food sector to produce immediate start-ups and gain more earnings in a significantly limited period.

The most satisfying part is the already fixed costs of all KFC meals in the market.

Necessary documentation for KFC Franchise

KFC demands FDD before awarding the license, wherein all the pre-eminent franchise leases, construction agreements, and terms and conditions of the financial dealings get specified. You need to sign all this documentation with the company.

Also, you must provide documents related to your property, meaning that you need to give proof of your land along with your citizenship records. In addition, you may have other significant IDs such as a PAN card and voter ID.

Training Summary of KFC Franchise

  • According to the KFC terms and conditions, the franchisees should attend the introductory training program administered by KFCLLC on "How to operate an Outlet" and finish the training program to the franchisor's content.
  • The franchisee should occupy the position of the chief operator to actualise the Key Operator Restaurant Training program provided by the KFC Franchise business.
  • Following the franchisor's supervision and management, all franchisees' staff must attend the training program until the end to meet KFC Franchise Company's contentment.
  • The schedule of the training programs is according to the need and conduct at KFCLLC's selected national, regional, or divisional offices or places, where the franchisor of KFC franchise costs select.
  • Training programs incorporate computer-based education curricula through its Learning Zone program, recorded entries, and on-the-job training curriculum at different KFC units and classroom guidance. The franchisee who completes the Key Operator Restaurant Training program of KFC will guide other workers at their unit.

The franchisor can ask franchisees and their staff to give attention and finish the supplementary and continuing training or refresher program, conferences, and workshops at events in various places that KFC Company fairly demands.

two businessmen shaking hands and word texted Franchise

Ways to apply for KFC Franchise in INDIA

To open a KFC outlet, you need to check the official website. Go to the established KFC website, click the "Contact Us" option. Choose the Franchise option and fill out the application form.

Concluding words

KFC is expanding at an accelerated pace in India. Presently, the company's annual turnover stands at a staggering high of about 400 crore rupees. The market share seized by KFC in India is about 25 percent, and the transnational corporation holds a value of approximately Rs. 1,500 crores in India.

Based on this information, it is indeed a great plan to invest in a colossal corporation like KFC and gain the ownership of a KFC franchise. Therefore, if you possess the capital to invest and or plan to run a fast-food eatery chain and gain control of that Franchise, KFC is a viable and lucrative alternative.

Also Read:

1) Amul franchise cost in India
2) Haldiram franchise cost in India
3) Subway franchise cost in India
4) Dominos franchise cost in India
5) McDonald's franchise cost in India

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Q. How do I get a KFC franchise in India?

Ans. To get a KFC franchise, you need to check the company's official website. There, you need to fill out an application form for the KFC franchise given by the company. For some days, the support staff of KFC will evaluate your application. If it accepts the application form, the franchisor will contact you to take things further.

Q. How much is the KFC Franchise Cost in India?

Ans. The capital you need to gain ownership of a KFC franchise outlet often comes between 1-2 crore rupees. However, the cost can differ based on the location of your planned outlet.

Q. How profitable is the KFC franchise in India? Is it worth it?

Ans. There is no actual figure or statistic accessible on the Internet to show the lucrativeness of the KFC franchise in India. However, it does not signify that running a KFC outlet is not lucrative. KFC holds about a 25 percent market share of the corporation, with a gross value of 1,500 crore rupees in India. As a result, if you plan to run a KFC outlet, you will earn significant profits. Some reports show that you can receive more than three times the amount of your investment within one year!!!