Matt Kallstrom

Franchise - KFC

Initial Fees
The initial fee for starting a KFC starts at 1,000,000 dollars and can even be more!
This includes construction of a building and start of supplies though.

Periodic Royalties
Periodic Royalties for KFC is 6%
This fee is charged once a year.

Trademarks
KFCs products are protected trademarks
This means if you opened a chicken restaurant you couldnt have a snacker on the menu

Interesting fact. On January 17, 1995 KFC got in their own legal issues for taking a trademarked name unknowingly which was the smokey chipotle.

It was resolved later on though.

Location Location Location!

The person interested in starting there KFC is in charge of where the location of the restaurant is.

Territory
You are not assigned an exclusive territory.
You may face competition from other franchises or even another food business owned by YUM! (which owns KFC) Franchise has no say in refusal to additional franchise, actually it is common to see KFC paired with another franchise in the same building. Example, Medford, KFC and Taco Bell.

Supplies and Products

Products and Supplies must all be even.
You can not have a special item in your store no other has or has the chance to sell

However, say theres a special product, say a KFC special stacker that comes once a month or something, a KFC owner can decline to sell it.

Contract Termination
When getting a KFC restaurant, when you pay your initial fee you sign a contract for a minimum of 5 years
Can not break contract.

Franchise Heirs
Yes it is allowed to be assigned to heirs, typically the heirs sell the business back to the franchise how ever.

Advertisment
KFC pays for all KFC restaurants advertising.
TV commercials, radio ads, internet ads etc.

The end.