How to Start a KFC Franchise

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KFC Corp. has been around since the 30's. Since then, it has become one of the most, if not the most, popular chicken & food restaurant all-over the world. Yum! Brands, which is a conglomerate company, owns the popular restaurant chain.

The company also owns other popular restaurant chain such as Long John Silver's, Taco Bell, Pizza Hut, and A&W.
With more than 500 units of KFC stores in the world and more than 50 percent market shares in the umbrella company, opportunities in KFC investment is ideally good for businessmen who are motivated and dedicated in bringing good service to its customers.
KFC Corp. has started making franchises available in the market in 1952. Since then, the company has established hundreds of store worldwide. Initially, you will need around $25-$30,000 for franchising a store. According to the company website, there was no financing available for first-time owners.
Based on the company website, you and your staff can get free training to develop your skills in handling such food and restaurant business. This training involved shift leading, brand training, and handling different branches in one time. The company, under the Performance Improvement Programs and Support, will also hand out certifications after you and your staff completed the training.
However, the $25,000 franchising fee does not cover all the expenses. You'll going to have another $1million-$1.8million as capital requirement. The cash based capital is needed for building construction and other equipment to be purchased later on.
The company is also requiring all of its franchisee to commit in building or at least handling 3 more restaurants over a period of three years, which is in the US alone. The location of the store can also be handled by the mother company in order for you to maximize visibility without compromising the profit you'll get in every store that you put up.
A genius in multibranding, Yum! Brands can also accommodate you're choice of two brands under of roof. It also gives you the value to your money by combining two leading restaurant names and giving consumers that much needed choice and convenience. Now, they will never have to move from one place to another just to order fast and fresh foods.
The company also has what they called Value Network. This includes programs and staff recognition and support to enable you to compete in advertising terms. Brand recognition alone is a form of advertising so you can be assured that you're getting more than what you need. Consumer attraction and competitive advantage is gained simply by brand recognition so you don't have to pay extra money for TV, paper ads.
With all of these factors, the return of investment can be acquired in just a small amount of time.

FAQ

Q. How much money required to open a KFC in India?
A. You need about Rs.20,000,000 or 2 crores INR to open a KFC Restaurant.
Q. What should be your net worth to apply for KFC franchise?
A. Your net worth should be Rs.50,000,000 or 5 crores indian rupees.
Q. What is the franchise fees?
A. Franchise fees in India is Rs.1,200,000 or 12 lacs rupees.
Q. Who manages the KFC franchises in India?
A. Yum! is managing them all.
Q. Whom to contact in India for a KFC franchise?
A. Use the official website to contact the company.

The Cost of Starting a Franchise

The truth is that most franchise owners will tell you that they have saved money for the cost of opening up their franchise units. In fact some franchise companies would often train them on how to save money as part of their start up training.
Many parent companies would often let the franchisee knows that there are hidden cost in starting up a franchisee business. They said that the biggest waste of money when it comes to starting a franchise business is the impatience of the franchisee.
Most people who are new in this business are often excited and happy to start. They often times can’t wait for their business to open. If there are two options for starting up a franchise business, most of new franchise owner would select for speed even if it would cost a lot of money. These choices may really cost a lot of money as some would not notice it. There are many cases that time is not gained or produced any value at all because there is an increased in cost.
Experts say that the secret for having the best result for startup cost is the balance. If you picture speed and time in graph, you don’t want to be both in the extreme. Sometimes there are people who save money to open a business. This is actually not good compared to just spending a lot or sooner than you should.
There are five expense factors where you often find savings in startup cost. Some of them are quite easy to take advantage of. Some would often require extra work and even expertise. With this kind of business, the saying that time is gold literally applies to every thing because you are trading time in order for you to save. Here are some factors that you need to focus on.

• Franchise fees - There are some franchise companies that negotiate on franchise fees. It is a good idea to save on this right away. It would be best if you can contact those existing franchise owners so you have an estimate on how much it cost. If you are not used to with negotiation, hire a lawyer or business consultant who can actually give you the best bargain.
• Turnkey packages - There are many franchise companies that give turnkey packages. This can help people who are just starting because all you need is coming from one source. This source could be the franchisor or third party seller. This package is often selected because it is convenient. The main purpose of this package is to offer convenience not the best value or lowest price. Sometimes you can learn that the components of the package could be acquired at a much lower cost but the tradeoff is the time and effort that the source invests in. This is actually where one gets a lot of savings.
• Lease terms - This requires you to have an expert advice or assistance if you don’t have any background. A real estate broker who knows the market is the perfect person for this job.
• Cost of construction - Many franchise business needs a location that is prepared based on specification. There are ways to save in this area. It is best if you can accept bids from one contractor to another.
• Equipment and other fixtures - This is where a lot can save money. The market got variety of options that you can choose from. Choose franchise equipment that is readily available to save time and money

 Source: startupbizhub

 

Posted in: Food Franchises