KFC Franchise Cost, Earnings and Review


Today we are reviewing the KFC franchise,
another huge name in the franchise world and one we are often asked about. Before we get started a bit of trivia – do
any of you know where KFC head office is located? Any guesses? It’s actually located at 1900 Colonel Sanders
Lane in Louisville Kentucky. True story Taking it from the top according to the KFC
2017 Franchise Disclosure Documents the cost to open a KFC franchise is between $1,465,550.00
– $2,586,550.00. You are required to have at least a 1.5 million
net worth and $750K available in liquid capital. A lot of people see it’s only a $45,000 franchise
fee and that’s all the money they need to open a KFC – absolutely not true. Now KFC is another one of those names that
people automatically think of when you talk about franchising. And again, like Subway and McDonalds, people
who have not done much or any research will assume that because KFC restaurants are so
popular, and so prevalent across North America that opening a KFC is a guarantee of success. But is it? Let’s take a quick look at the QSR50 which
is a listing of the top 50 Quick Service or as you probably know them, fast food restaurants. Now we can see that KFC is ranked at #13 by
the QSR50 and had a total of just under 4000 operating restaurants in 2016. But let’s take a look at some more important
numbers to see what KFC franchise owners are actually earning. We can see that an average KFC franchise is
taking in just over a million dollars in sales. These are gross figures so this is certainly
not what is going in the owners pocket. For sake of comparison that is under half
of what a Mcdonalds franchise earns. An average McDonalds franchise owner is making
2.5 million. Chick-fil-A is earning 4 times that per unit. For further comparison we work with an emerging
food franchise that has AUV’s of over 1 million dollars with only a 300-400k investment but
that’s a story for another day. Now obviously there are a lot of other considerations
such as size of the location and your overhead and operational costs but let’s keep it simple. Let’s take a look at this column which represents
total change in units. We see a negative which means KFC closed over
100 stores. Let’s open up their recent FDD which will
show the trend of growth or decline we see that in 2014 KFC closed 121 stores, 120 stores
were closed in 2015 and 92 stores were closed in 2016. We also see that 2 company owned locations
were closed in 2016. Now we have always suggested that people try
and invest in franchises at the growth stage of the curve. Despite that fact most people, even seasoned
investors with millions of dollars trend towards these “established” franchises because they
think a big name in the top 15 will mean great returns. Well for 335 locations over the last 3 years
that meant closing the doors. Now the KFC FDD indicates only the last 3
years however we have it on good authority the total number of store closures over the
past 14 years has been over 1200 restaurants. Speaking of big names in franchising Subway
closed over 900 stores last year and 300 the year before that yet people still flock to
these concepts. Remember the emerging brands today are the
McDonalds, KFC and Subways of tomorrow. KFC once one of the largest brands in America
was never the same after the Founder, Colonel Harland Sanders passed away. Before we wrap up some Colonel Sanders history
– he dropped out of school in grade 6, he was an actual Colonel, an army mule tender,
an insurance salesman and didn’t even start his franchise empire until after he reached
retirement age. It took him only 10 years to reach over 600
Kentucky Fried Chicken locations. Don’t forget to like and subscribe for franchise
news and reviews, and if you need help finding a franchise call the experts at franchise.city.

53 comments on “KFC Franchise Cost, Earnings and Review”

  1. adam roberts says:

    A good friend of mine runs 4 kfcs here in the UK, he seems to be doing very well (but we don't have Wendy's or chick fil a so it is more popular here)

  2. Ritesh Waghmode says:

    Sir , same condition in india?

  3. The Gill Family says:

    Thanks for all your videos, very informative. Keep it up

  4. John Tim says:

    hello sir, could u do GNC Livewell please thank you

  5. Tom Reagan says:

    i love kfc lol

  6. robert braun says:

    I didn't hear U state what the average single unit franchisee owner earns as U said U would at the start if the video?

  7. Juanco_"C.E.O." says:

    Do a vid on Halal Guys. Thanks

  8. WRO says:

    I don't have numbers but fast food in Asian countries is growing like crazy. If you open a KFC in China or Vietnam, you be getting the franchise fine. In the USA, KFC has to deal with broad range of people, who are trying to eat healthy. The vegan fast food store in San Diego, CA was so busy the day I went there.

  9. William Johnson says:

    I love KFC but I think they going to price themselves out of busines.

  10. Hot Wings says:

    KFC is my favourite fast food for very long time. Always love KFC. But their fries are terrible & prices went through the roof☹

  11. Built Electric T.V. says:

    Did you do a video on Taco Bell yet?

  12. PickleRix says:

    The local KFC closed down in our town. I think the problem was quality. The local store either had no chicken or it was cold and greasy. People finally stopped going there for chicken. A Church's chicken restaurant is now located there.

  13. Albertus Van Schalkwyk says:

    Who would have thought selling chicken is so expensive in start up cost. Here in South Africa only existing franchisees can open a new franchise, but it is the most popular franchise. The quality of food has gone down in the past 15 years, however, and it is a rip off in price. I bought 3 pieces of chicken, some wings and some popcorn and it cost more than a meal at a sit down restaurant. For almost a third of the price I can get a rotisserie chicken at the fanciest grocery shop in town.

  14. Cory says:

    Great video but Colonel Sanders wasn't a military Colonel. It's a tittle that the state of Kentucky bestowed upon him. A Colonel wouldn't be tending mules 🤣.

  15. Jack says:

    you guys make really quality content. How do you guys make money? What's your business model like?

  16. Professor X says:

    I can't remember the last time I saw a crowded KFC. Much better franchises to buy nowadays.

  17. Joseph LaCerra says:

    Oddly, KFC's pricing has escalated to the point that one can eat cheaper in a sit-down restaurant. As the prices have increased, the quality has decreased.

  18. Steve P says:

    They need better tasting food, cleaner stores and much better service.

  19. Sulfen says:

    They're overpriced because their competition is much healthier and tastier at lower prices.

  20. Truthfears Guilty says:

    K naiving
    F ranchise
    C ompanies

    🙂

  21. R S says:

    Is it because they don't have any knowledge other than stealing using others people's brains

  22. FreedomFighter 2017 says:

    We stopped going to KFC … poor quality , high prices … was great 20 years ago , not any more

  23. Josh Stauffer says:

    I was an assistant location manager at a KFC franchise for several years in my early twenties. 1.4-1.5 million in sales. Store profit, after all expenses, was between 2-3%. Very difficult to stay in the green. I would say your biggest enemy in the business is KFC corporate. Very strict franchise rules and quarterly inspections. This, of course, on top of whatever local regulations and inspections you may have. Unless you have a very competent team of managers, you'll be in the restaurant managing operations.

  24. dropautoparts says:

    Why do all ur vids have a blue tint? Love your vids, but that tint is distracting

  25. Todd Cook says:

    100% of franchisees are a scam

  26. Mike G says:

    I hate KFC. Almost all of their locations are outdated and disgusting.

  27. richie p says:

    A new KFC opened on one of the busiest strips here on Long Island a few years ago and just recently closed. I eat a lot of fast and junk food but I don't recall getting sick so much after eating this food. The place was never busy and within a few hundred feet away recently renovated McDonalds and Wendy's exist and they thrive. Poor quality I guess is to blame.

  28. whocareslol222222 says:

    Cx

  29. rana saad says:

    you didnt mention anything about profits

  30. Kelly Kernaghan says:

    kfc failed miserably in my town. they cut corners to the bone

  31. Jeffrey Small says:

    Food is gross and expensive giant eagle has better fried chicken KFC seems too be always in the hood now days

  32. Camelot says:

    Unfortunately KFC is a dying franchise. I can't remember the last time someone brought KFC to a picnic. lol

  33. Michael Carr says:

    Please consider doing a video about car wash franchises. Sounds like a good passive business.

  34. R. Ive says:

    I recently ate at a KFC and it was horrible. Soft, runny, lumpless mashed potatoes and bland chicken.

  35. Scott Gibson says:

    I like fried chicken but rarely eat it for health reasons, in my part of the country KFC is a bit player in fast food. On the plus side they are always empty, no wait for lousy food.

  36. JIVAN GILL says:

    KFC are better India 🇮🇳 they have better tasting foods and cleaner stores and better service but KFC in America sucks ass man lol bad service they always empty and food is cold 🥶 sorry but it’s true

  37. Truthfears Guilty says:

    and i bet if Chik-Fil-A ever printed "SERVING FRIED CHICKEN" under their logo, they too will be gone.

  38. Gary Oak says:

    would you do mos burger or a similar franchise from western market asia?

  39. Random Roadster says:

    You forgot to add that he was in a gunfight and shot a rival gas station owner as well.

  40. Mark Soberay says:

    Starbucks at 1.1 million thats say $2400 a day 200 an hour consistently….time for me to get out my coffee pot

  41. Pam Bare says:

    Hi Robert. Can you shed some light as to why these stores close in technical terms, who makes the decision, criteria etc, etc..?

  42. PresidentGas1 says:

    I don't know …. in the Bay Area of California KFC has all but disappeared. They still rock in China however ……

  43. Gr8thxAlot says:

    We have a KFC and a Chick-fil-A located on each side of a busy road. Guess which one has an empty parking lot during rush and which one has their double drive thru lined up.

  44. Billy Ray Valentine says:

    Sanders was not a military Colonel. He was a Kentucky Colonel, which is an honorary title

  45. Peter Southern Boy says:

    Here in the US – just stop by a Sams Club or Costco for a $5.00 rotisserie chicken. Superior taste, lower fat and calories.

  46. Phantom Warrior says:

    kfc in north America is absolute garbage. however kfc in asia is still pretty good. mainly because in Asia fast food is considered somewhat of a luxury.

    plus its getting killed in canada by popeyes chicken which serves halal chicken which in turn is tapping into a loyal base that kfc ignores.

  47. Aditya Wardhana says:

    Globally mcdonald won,but in my country, kfc won

  48. Michael Schuster says:

    The two in my town closed down already. Not enough business and a decrease in quality. I rarely if ever went there.

  49. Joseph LaCerra says:

    KFC used to be affordable and tasty. Nowadays it is so expensive that a person on a fixed income or a young family cannot afford it. But at least we are not missing much, since as the prices increased the quality decreased.

  50. Hassan Bazzi says:

    Great information. Thank you

  51. bmcc12 says:

    Sanders was only in the army for five months,, and was given the honorary title in the 1930’s.

  52. Robert Kreamer says:

    How about Fire House Subs ? HQ in Jacksonville FL ?

  53. Marcus Yakira says:

    You mispronounced Louisville

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