KFC Franchise: Setup Guide, Investment, Profit, Process- Step By Step Guide: Best Explained 2022

If you are confused about taking the KFC franchise in India, then let me clear your doubt by sharing the revenue of KFC in India.

According to the trusted sources, the total income of KFC in India of FY 2020-2021 was Rs 400 crores, and it is increasing with the ultimate speed.

KFC is not a newborn company that someone needs to think lots of time before investing money in it.

It has earned reputation, trust, loyalty, and goodwill with the hard work and consistency of 89 years.

Yes, the franchise cost of KFC is very high, and that is why people have to think many times before buying it.

So that in this article, I am going to explore all the details about the KFC business and KFC franchise that contains:

  • KFC Biography
  • How to get kfc franchise in India
  • Product range of KFC business model
  • Business model of KFC in India
  • Requirements for KFC franchise
  • Land Requirements
  • Investment cost
  • How to apply online and offline for franchise registration
  • Profit margin and earning

What is KFC

The full form of KFC is Kentucky Fried Chicken, and it is a fast-food restaurant chain, which has a specialty in fried chicken.

Head Quarter of KFC

KFC was started in 1932 in the United States of America by Colonel Harland Sanders as the street food stall on the edge of the road near the restaurant during the time of the great economic depression.

The headquarter of KFC is situated in Louisville, Kentucky, United States of America.

KFC is the world’s second-biggest fast-food restaurant chain in the world in present.

The company of KFC holds a worldwide presence, as of December 2018, KFC has spread its outlets and franchises in more than 135 countries, with more than 23,000 locations.

First Franchise of KFC

KFC was founded in 1932 in the USA, but it took a too long time to open the first franchise outlet of KFC, and it opened its first franchise store in 1952 in the city of Utah.

It is popular for its slogans like “So Good”, “It’s Finger Chicken”, “Good”, and “Nobody Does Chicken Like KFC”.

With the unstoppable growth, KFC became the biggest and fastest food operation chain in the USA with 600 restaurants in 1963.

And this was just starting, moving on the path of success, KFC recorded sales of around 23 billion dollars in 2013, which was a huge and biggest achievement.

Product Range of KFC

The core product of KFC is Fried Chicken which contains 11 types of spices and herbs, and apart from this, there are many varieties the KFC has.

  • Salads
  • Sandwiches
  • Wraps
  • Burgers
  • Rice bowls
  • Various Beverages

KFC Franchise in India

As long as KFC started spreading its business, it also launched the franchise business in India.

KFC holds a very strong position in India, with more than 350 KFC outlets spread in the different zones across India.

It had opened the first franchise store in Bangalore in 1995 in India, and in 2004, KFC started expanding its business of franchise outside Bangalore.

There was a little bit of challenge for KFC to run its franchise business in India that India has two types of people.

  • Vegetarian People
  • Non Vegetarian People

By considering the requirement of vegetarian people, KFC started the vegetarian products as well with the slogan of “So Veg, So Good” to attract vegetarian customers in India.

With its popularity among the Indian Public and its delicious food which aims to cater to both vegetarian and nonvegetarian people.

KFC Franchise Requirements

There are certain requirements that need to be fulfilled by an individual in order to acquire the KFC franchise in India.

If you are thinking to start a KFC franchise near your area, you should have the below-mentioned aspects fulfilled, then you can apply for a franchise of KFC.

Land Requirement For KFC Franchise in India

As you know each franchise of the food business requires a sufficient area of land to set up the outlet so that there should be enough space for the equipment, kitchen, and seating arrangement for the customers.

According to KFC requirements, you need the land of the area around 1,000 sq ft to 1,500 sq ft.

Moreover, Company does not concern about the ownership of land, it means it doesn’t matter whether you own the land or you are taking it on a lease, but the land must be objection-free.

KFC Franchise Cost in India

Investment is a very important part of any franchise business to make certain decisions.

From the investment amount, an investor can make up his mind whether he should invest or not in a particular business.

Now, coming to the center point, the cost of KFC franchise in India is between 1 crore to 1.5 crores.

Moreover, you should have the liquid cash of amount Rs 4 to 5 crores, or else should have the property that can be converted into cash immediately.

Apart from this investment, you are supposed to give the 4% of the sales to the company as royalty.

The renewal term of the Agreement with KFC is 2 to 3 years which depends on the situation and location.

How to Get KFC Franchise in India – Registration Process

The registration process to acquire a KFC franchisee for India is too simple, you need to visit the KFC official site first.

Fill the details in the form published, and submit it which contains your personal details, and business details.

After submission of the form, your application will be reviewed by the franchise business team of KFC, and if your application gets approved, they contact you.

Once your application gets approved, there will be a meeting with them for you, and you will be informed of all the further details while the conversation.

On the successful meeting, you will be signing the agreement with KFC, and within certain days of the signing process, you will be able to open the KFC franchise store on your location.

KFC Franchise Profit Margin in India

KFC has managed to capture around 25% of the market share of the company, and today its value is worth Rs 1,500 crores in India.

This stat indicates that a person investing in the KFC franchise business model will reap a significant profit amount.

The profit margin of KFC in India is around 30% to 35%, so it is very profitable to start KFC franchise outlet with this profit margin amount and a big value of the brand of KFC.

Why KFC Gives Franchise

A successful business organization always works in the direction of business expansion, and KFC is also doing the same.

By offering the franchise model, it is trying to expand its business to each location, it is moving in the direction of increasing sales over the world.

This stuff is not supposed to be done by a single person sitting at one place, and that is why KFC invites businessmen to join their business and expand it.

Benefits of KFC Franchise

The franchise model is becoming very popular day by day in the world, and there are many reasons behind it with unbelievable benefits.

You can see that there are many businesses that are offering franchise models, like McDonald’s, Domino’s Pizza, Lenskart, and many more companies in the world.

So, let’s explore what are the benefits of acquiring the KFC franchise.

Getting Readymade Brand Value

When we start a new business, there are many challenges that we have to face, as a newbie in the market, we have to take around more than a couple of years for creating the brand value of the business.

Moreover, we need to do various experiments with the risk of money and time as well which don’t have any surety whether they will succeed or not.

But when we acquire a franchise business model, we get the brand value, fame, reputation, and trustworthiness along with the business acquisition.

While acquiring the franchise business of KFC, we get all of the things with it, so we don’t have to wait for more than a couple of weeks for getting the regular customers.

Moreover, we are not supposed to do any experience for customers’ feedback and analyze their likes and dislikes.

Saving Marketing and Advertising Cost

As you know marketing and advertising are some of the neediest and most important pillars for the growth of any business.

Marketing and advertisement need lots of money, time, management, and effort to do as well.

When you acquire a franchise business of KFC, you will not need to do so, because it already is doing the same on your behalf of you.

Moreover, you are not supposed to do any kind of promotions or offers to increase sales.

Automated Sales

As I mentioned just above that all the marketing, offers, and promotion stuff are handled by the brand itself, so you get the sales automatically.

They are providing you with risk-free business where you just have to serve the customers according to the brand’s rules and norms.

Final Words For KFC

KFC is growing at the most rapid rate in India, moreover, it has a huge customer base in India as well, and it is providing full and proper training along with the startup, and helps in marketing and advertising.

So, if you want to invest in the KFC franchise business model in India, then you are going to grab a huge and great business opportunity for profitability.

FAQs For KFC Franchise Model

Getting the franchise of KFC needs a huge investment but is a very profitable business model if you can afford the KFC franchise price in India.

You need to make a proper decision after asking some questions to yourself and finding their answer to the related sources.

Is KFC successful in India?

KFC is successful at most of the locations in India, and at some locations, it is not profitable, and they have to close the stores as well.
But the ratio of closing the KFC outlets is less than minimal.
Overall, the KFC outlet business is successful in India, moreover, you should conduct the research before you make the decision to acquire the franchise of KFC in your area.

Which is the cheapest franchise in India?

It depends on many factors like franchise cost, profitability, ROI, profit margin, customer base, royalty amount, fees, and many other aspects.
If you are going to acquire the chai sutta bar franchise, it asks for 16 lakhs rupees for the franchise fees including all stuff and costs.

How much does the KFC franchise cost in India?

The franchise price of KFC in India is almost 2 crores, but apart from that you must have 4 to 5 crores rupees in liquid cash, or you must own a property that should be easily convertible in cash immediately.
In a smile calculation, if your annual income is 6 crores to 10 crores or more than it, then you can make a firm decision to buy the franchise outlet business of KFC.

How to get a franchise of KFC?

The process of getting the franchise of KFC is very simple, you just need to visit their franchise website, you will find the option of “Apply Now“.
On clicking on the text, you will get a form that you have to fill up with the required details and submit.
Your application will be reviewed by their team, if your application seems to be approved, they will contact you, you will be invited for the meeting, and on a successful meeting, you will be given the franchise which you can start on certain days after accomplishing all the formalities.

What is the profit of KFC in India?

If you own a franchise business model of KFC, it is offering you a profit margin between 30% to 35%, and it is the major reason why the bigger investors are too much interested in the business of KFC outlet franchise.
There are very few food and restaurant chain companies in the world that are offering a huge profit margin ratio, and KFC is one of them.

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