KFC
Yum! Brands Inc.
Company Information
1900 Colonel Sanders LaneLouisville, KY 40213
KFC Corporation (KFCC) is a Delaware corporation. KFCC was incorporated in Delaware on February 11, 1971. KFCC currently does business under the trade names of ”KFC” and “Kentucky Fried Chickens”. KFCC’s principal business address is 1900 Colonel Sanders Lane, Louisville, Kentucky, 40213. KFCC‘s corporate parent is YUM! Brands, Inc. f/k/a TRICON Global Restaurants, Inc.
If you are approved as a KFC non-traditional licensee, KFCLLC will grant you the right to operate one KFC outlet (each a “Non-Traditional Outlet”) at a specific location approved by KFCLLC. Non-Traditional Outlets offer a limited menu and primarily operate at locations captive in nature, including such venues as military bases, transportation terminals, colleges and universities, venues within business and industry locations, malls, high foot traffic locations, amusement parks, athletic stadiums and similar sites. You will sign the Kentucky Fried Chicken Non-Traditional License Agreement, in the form attached as Exhibit B (the “Non-Traditional License Agreement”), for a license to operate a NonTraditional Outlet (the “Non-Traditional Outlet”). The Non-Traditional License Agreement grants you a license to use (i) certain KFC trademarks, trade names, service marks, logos and commercial symbols KFCLLC periodically authorizes, including the “KFC®” and “Kentucky Fried Chicken®” marks (together, the “Marks”); and (ii) the proprietary business formats, methods, procedures, designs, layouts, standards and specifications (together the “System”) KFCLCC authorizes, solely in connection with the operation of the Non-Traditional Outlet. The Non-Traditional Outlet will offer a menu of products primarily consisting of chicken items, including chicken strips and sandwiches, which are identified on Exhibit A of the Non-Traditional License Agreement (the “Approved Products”). KFCLLC may amend or remove any of the Approved Products upon prior written-notice to you. Before you build an Outlet or sign the Non-Traditional License Agreement, you must sign a “Non-Traditional Deposit Agreement” in the form attached as Exhibit C, under which you will apply for a site for the Non-Traditional Outlet. Once KFCLLC approves a proposed site under the Non-Traditional Deposit Agreement, then concurrently with signing the Non-Traditional License Agreement, you must sign a KFC Non-Traditional Option Agreement, in the form attached as Exhibit D (the “Non-Traditional Option Agreement”). The Non-Traditional Option Agreement provides you the option to develop the Non-Traditional Outlet at an approved site. KFCLLC does not sign the Non-Traditional License Agreement until you have fulfilled the requirements of the Non-Traditional Option Agreement.
2 Ongoing Lawsuits
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Franchise Rating
Franchimp Summary Rating
4/10
Earning Transparency
7/10
Investment Accessibility
1/10
Summary of potential earnings
$1,340,696 / unit
Average Revenue During 2022QSR
$282,742
Industry Low
$3,261,971
Industry High
Franchise System Development
| Year | Units at Start of Year | Units Opened | Units Terminated | Non-Renewals | Re-Acquired by Franchisor | Ceased Operations | Units at End of Year |
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Distribution of KFC Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $45,575 Maximum: $50,500
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $1,052,825 Maximum: $3,771,550
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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