Harland Sanders, father of 24 KFC Corp, began his journey in 1930. He started his business named Sanders Court & Cafe in Corbin, Kentucky, a room which was in front of a gas station. The contributions of Harland Sanders to the local cuisine mykfcexperience made him the honorary Kentucky Colonel in 1936. Harland started franchising in 1952 to expand his company and to increase the brand awareness. The first franchise was received by Pete Harman in Salt Lake City. According to their agreement Sanders Court & Cafe would receive royalty of one nickel for each chicken sold by Pete Harman.
KFC Franchise All over the world
The delicious chicken preparation of KFC is famous all over the world. However, the recipes of KFC remain secret. The number of foreign franchises steadily increased day by day. It was 5, 316 in the year 2006 and became 7, 482 in 2009. In the us, there is a little fluctuation in the number of franchises over the years from 2006 to 2009. On the other hand, the Canadian franchisee remained at 773 since from 2006.
Cost and Fees To buy A Franchise
Being a KFC franchise is an excellent choice to expand your restaurant business. The franchise fee for KFC is $45, 000 and the amount of investment will range in between $1, 379, 900 to $2, 422, 500. The owner of the franchise is liable to pay an ongoing royalty of 5% of the total revenue. Term of agreement in this case is 20 years after which it should be renewed to continue franchising. Besides these, the amount of net worth, cash liquidity and experience in restaurant business are other essential requirements. The requirement for net worth to hold a KFC franchise is $1, 000, 000 and cash liquidity is $500, 000. Regarding business experience there are three important aspects, skills of marketing, experience in industry and experience in the general business.
The Financing System Of KFC
There are different types of financing available for KFC. In case of In-house business there will be no franchise fee, startup costs, cost for equipment and inventory. Furthermore, there will be no payroll and accounts receivable. In contrast for a third party business all these costs should be incurred.
How to Run A successful KFC Franchise?
The concept of a franchise model is the backbone of a brand named restaurant. To be a successful franchise of KFC you should be determined to owe at least 5 KFC restaurants in the long term. The restaurant should be located in a busy area where people have higher average earning. There must be multiple sources that are ready to finance your business in the long term. Buying a KFC franchise provides you the benefit of a well established brand. It also benefits you with corporate support and wide market coverage.