Are you looking to start a KFC franchise business in India? That is a good choice for you. Because KFC has about a 5% market share of the fast food market as of the day. In 2018 this percentage was 2.8% and now its come to five percent. So this will make you more profit. What did you think? This is not difficult as you think. Just keep reading this article. We guide you and here we also provided all the steps to open a KFC Franchise in India. Let's start this article.
What is KFC?
KFC Means Kentucky Fried Chicken. It is a fast-food restaurant chain that specializes in fried chicken. It is the world’s second-largest restaurant chain after McDonald’s, with 22,621 locations globally in 136 countries as of December 2019. The company is headquartered in Louisville, Kentucky.
KFC was founded by Colonel Harland Sanders, an entrepreneur who began selling fried chicken from his roadside restaurant in Corbin, Kentucky, during the Great Depression. Sanders identified the potential of the franchise model, and the first “Kentucky Fried Chicken” franchise opened in Utah in 1952.
By 2015, KFC was struggling, having lost business to other retailers and being surpassed by Chick-fil-A as the leading chicken retailer in the US three years previously. The company launched a new initiative with a plan to revamp its packaging, decor, and uniforms and expand its menu. Additionally, beginning in May 2015, a new series of US advertisements was launched featuring Darrell Hammond as Colonel Sanders. In a planned rotation of actors, Norm Macdonald, Jim Gaffigan, George Hamilton, and Rob Riggle portrayed sanders in similar ads through the fall of 2016.
Why Start a KFC Franchise in India?
The fast-food industry is growing rapidly in India. The busy lifestyle of the people and the change in food habits have led to the growth of this industry. Fast food is no longer considered unhealthy and is now seen as a convenient option for busy people.
According to a report, the Indian fast food market is expected to grow at a compound annual growth rate (CAGR) of 16% from 2019 to 2024, reaching a value of Rs 1,31,674 crore.
KFC Franchise Cost
The estimated startup costs can range from a staggering $1.2 million to 2.5 million which a franchise fee of $45,000. The average KFC franchise cost in India is around Rs. 1 Crore to Rs. 2 Crore investment, with commercial space of 1 to 1.5 thousand sq. ft. as per the agreement dated, plus the 4-5% commission to KFC paid as royalty amount son the actual gross sales receipts. This in turn means Rs. 20 lacks preliminary investment and about 1000 square ft prime commercial space in a potential business area to set up the store after signing the marketing agreement.
The food Franchise Agreement of KFC Corporation grants the franchisees a license to use certain KFC trade names, trademarks, logos, service marks, and commercial symbols such as the “KFC” and “Kentucky Fried Chicken” marks as per the authorization provided in the franchisor periodically.
If you get an okay for a KFC Franchise agreement, a Franchise Disclosure Document (FDD) with KFC has to be signed before the license award. This agreement has all the financial dealings, conditions, terms, franchise lease agreements, construction details, and more to be signed with the master Franchisee of KFC. You will be required to submit all property documents; identification means like Permanent Account Number (PAN), Aadhar card, residential address, financial strength proof via bank records, etc. The FDD agreement is duly filled in and signed.
KFC Franchise Requirements
- A minimum investment of Rs 1-1.5 crores
- A minimum area of 1000 – 1500 sq. ft.
- Experience in the food and beverage industry
- The ability to invest in marketing and promotional activities
- A strong customer service orientation
- The ability to maintain high standards of quality
- Good financial management skills
- An understanding of the local market
- A dedication to the brand
- Good communication skills
Financial Qualifications
- $1,500,000 Total Net Worth.
- $750,000 Total Liquid Assets*
- Net Worth and Liquid capital access commensurate with ownership level (may vary significantly from minimum requirements)
Advantages of the KFC Franchise in India
The advantages of starting a KFC restaurant in India are numerous. As a well-established and respected brand, it has a strong presence in the market and is known fo its quality products and excellent customer service.
In addition, the company offers comprehensive training and supports to its franchisees. Franchisees are given access to the Training Academy, where they can learn everything they need to know about running a successful outlet or restaurant.
There are many benefits of starting a KFC franchise in India, some are listed below:
- It is estimated that your profits in the business could touch the investments and KFC franchise cost thrice through revenues earned in a short span of a year.
- With such excellent profits, it is a small wonder that the KFC franchisee outlet is such a great food business idea in India. Depending on the franchisee or equity model, the profitability may vary.
- However, the KFC model ensures early start-up times and quick gains or return on investment (ROI).
- Since the prices of all KFC items are already standardized and well-accepted in India, there is no ambiguity in the pricing models.
- KFC also offers complete training, setting up the store as per its directions and design, and a huge brand name to be associated with.
How to Apply for KFC Franchise Online in India
To start a KFC franchise unit, you have to apply on their official website https://www.kfc.com/about/franchising.
Step 1: Go to the official KFC website, at the right bottom of the page, you can see the “Join Us” option, click on that https://www.kfc.com/franchising/join-us.
Step 2: Select the Franchise option
Step 3: and fill out the application form and proceed further by entering and submitting other mandatory fields, such as name, contact number, and other needed details.
Apply for KFC Franchise: https://www.kfc.com/franchising/join-us.
KFC Franchise Contact Email: [email protected]
list of other details to be filled in the franchise form:
- Space available
- The amount that you can invest in
- Name of the owner/s of the property
- Contact details of the owner
- Address of potential KFC store
- Photographs of the location
- Details of parking space
Terms of the Agreement of the KFC Franchise
As per the Terms of the agreement of the KFC franchise. It is 20 years an initial. It can be renewed later when it meets the company's requirements.
Conclusion
Starting a KFC franchise in India is a good investment opportunity as it offers good returns on investment, is a well-known and respected brand, has a strong presence in India, and provides comprehensive training and support to franchisees.
FAQs
Is it easy to get KFC Franchise in India?
It is not that easy to get a franchise from KFC in India. They typically would be happy to grant the franchise opportunity if the individual has a good space and the right location to open its outlet.
What is the Average Profit of a KFC Franchise?
The profit margin of the KFC franchise is 10% for the Sale of Rs. 6,00,000. The outlet may have fewer profits in the initial days.
How can I apply for a KFC Franchise in India?
For apply a KFC franchise in India contact KFC for a franchise opportunity, go to the KFC website and the Contact US page option. Download the application and submit it online. Wait till you get a response from KFC.
