This article will give complete information on why and how to apply for a KFC franchise and the cost of starting a KFC franchise in India.
In 2024, the prospect of a KFC Franchise cost in India beckons entrepreneurs with a delectable opportunity. As a global giant in the fast-food industry, KFC continues to expand its footprint, offering a flavorful journey for potential franchisees. The renowned brand, synonymous with crispy chicken delights, provides a proven business model, extensive support, and a recognized name that resonates with Indian consumers. For those eyeing a venture in the food industry, the KFC Franchise cost in India for 2024 represents not just a business venture but a chance to be part of a worldwide culinary phenomenon.
For people planning to start a food retail franchise in India, the KFC franchise business is what they should choose. The KFC franchise is a profitable and rewarding business with great monetary opportunities. However, a person should also analyse beforehand whether or not this franchise business would suit their skills, interests, past experiences, and knowledge.
Capital Investment for a KFC Franchise in India
The estimated start-up cost can range from ₹ 96 lakhs to ₹ 2 crores. Also, ₹ 36 lakhs is required as a franchise fee to become a KFC franchise owner in India. In addition, a royalty fee of 5% is needed to be paid to the company on gross monthly receipts. According to various magazines and online portals, KFC’s profit ranges between 7% to 8% of the total sales. The total profit from every store per year is estimated to be around ₹57 lakhs to ₹73.4 lakhs.
The official website of KFC would be helpful to those who want to open a KFC outlet in the country. To fill out the application form, one should go to the KFC website, click on the ‘Contact Us’ option, and then select the franchise option to fill out the form.
To start the KFC Franchise cost in India, one requires an investment of ₹ 1 crore to ₹ 2 crore with 1000 to 1500 square feet of space. Also, an amount of ₹ 20 lakh is needed to start a franchise of this brand. This amount will enable the franchise owner to get the marketing service from the franchisor.
So, for this, you will also require a 1000 sq ft space. The KFC Corporation has a non-compliance agreement for the franchisees which grants the license to the latter to use the former’s trade name, trademarks, logos, service marks, and commercial symbols like KFC and Kentucky Fried Chicken in their respective franchise shops.
KFC Franchise Cost in India
KFC is more expensive than other food restaurants and needs a high investment. The investment for KFC Franchise cost in India.
A person should have a high financial capacity to invest in a KFC franchise. It will cost approximately one crore to start a KFC franchise in the country. One must know the following factors to match the growth of the franchise agreement other than just investment and funding for the business:-
- One should have good managerial experience, which is one of the critical factors in building any business from scratch
- One should be an individual who keeps customer satisfaction on high priority
- One should possess good entrepreneurial skills and have a high passion for running the business
- One should be responsible enough to be able to satisfy customers’ high expectations of the brand.
How to Apply for a KFC Franchise in India Online?
An individual who wants to start a KFC unit of business franchise should visit KFC’s official website:
- After visiting the official KFC website,
- You will see the ‘Contact Us’ option at the bottom. Click on that option
- Select the option of the franchise
- Fill out the franchise form with details like name, contact information, and other additional details.
Here is the list of other details to be filled in the franchise form:
- Space availability
- Amount to be invested by an individual
- Property owner’s name
- Contact details of the owner
- Address of the KFC shop
- Photographs of the location
- Details of the parking space
Why Opt for a KFC Franchise Business?
Here are some reasons to start a KFC franchise:
- The demand for the KFC franchise is high since it is one of the most-loved US-originated brands and also a very popular quick-service restaurant chain worldwide
- KFC gives the original fried chicken recipe and is the world’s most loved chicken restaurant chain worldwide
- They have many trademark registration food items, which include extra crispy chicken, KFC hot grilled chicken, chicken popcorn, extra crispy chicken strips, and many more
- KFC has created a strong franchise-led outlet worldwide and is equally famous in India
- India has 335 KFC restaurants in more than 100 cities, making it truly profitable for the franchisees as well as the franchisors.
Training Overview of KFC Franchise Company
The next section walks you through the training overview of the KFC franchise company.
- The terms and conditions (T&C) of KFC state that a person must attend the training program provided by KFC LLC
- The employees are required to attend the training program under the guidance and direction of the franchisor
- The training program is scheduled by seeing the needs of the people and will be done at KFC LLC’s designated national, regional, or divisional offices
- The KFC franchise has many training programs, including computer-based training, written training, and on-the-job training
- After finishing KFC’s essential operator restaurant training program, an individual can train other employees too
- Moreover, the franchisor may call the franchisees and their staff members too to complete additional training or revision courses, conferences, programs, and seminars.
Territory Granted by KFC to their Franchise
When the franchisees comply with the company’s franchise agreement, the franchisees will have an exclusive territory and a protected location within the smaller 2.5 km radius of the franchise unit or in a place where 30000 people reside in close proximity to the shop.
The franchisees won’t enjoy any special rights over the territory based on their achievements and performance, like market penetration and specific sales volume. Moreover, other than approved food products, the company will not allow the franchise to use or sell food products that are also mentioned under the franchise agreement.
What Are the Terms of Agreement and Renewal of the KFC Franchise?
Twenty years is the period of the initial franchise term. If the franchise can meet the company’s requirements, it can renew its franchise under different terms and conditions than the former contract.
Conclusion
This blog points out all the information one would require about India’s franchise rules and costs for KFC. Moreover, it is essential to follow the norms of KFC franchise cost in India to get a franchise. To get detailed information regarding franchisees and the related processes, you can get in touch with the legal Experts from Vakilsearch.
FAQs on KFC Franchise Cost in India
How much does a KFC franchise cost in India?
The start-up costs are approximated to be between ₹96 lakhs and ₹2 crores. In India, obtaining a KFC franchise requires paying a franchise fee of ₹36 lakhs. A sizable investment of ₹1-2 Cr and 1000–1500 square feet of space are required.
What is the procedure for obtaining a KFC franchise in India?
To obtain a KFC Franchise cost in India, you need to contact KFC India, fill out an application, undergo a screening process, and meet their criteria.
What documents are required to obtain a KFC franchise in India?
Documents required for obtaining a KFC franchise in India include identification proof, financial statements, business plan, and any relevant licenses or permits.
What is the support provided by KFC for its franchisees in India?
KFC provides support to its franchisees in India through training programs, marketing assistance, operational guidance, and ongoing support.
How long does it take to open a KFC franchise in India?
The time it takes to open a KFC franchise in India can vary depending on factors like location, permits, and construction, but it typically takes around 6 to 12 months.
What are the selection criteria for a KFC franchise in India?
Selection criteria for a KFC franchise in India include financial stability, business experience, commitment to KFC's brand values, and suitability of location.
How much rent does KFC pay in India?
KFC typically leases its properties in India, and the rent varies depending on location, size, and other factors. Usually it has ₹2 lakh to ₹5 lakh per month
Who owns the KFC franchise in India?
KFC's franchise in India is run by Sapphire Foods India Limited. It is not authorised to provide Franchisee and/or Sub-Franchisee for the ‘KFC’ and ‘Pizza Hut’ brands in any way.
How successful is KFC in India?
KFC's yearly sales revenue in India increased to over ₹14 billion in the fiscal year 2023 from over ₹10 billion in the previous year. There were 278 Kentucky Fried Chicken locations in India as of 2022. A number of elements contribute to KFC's success, such as its well-known secret formula, careful preparation method, use of fresh ingredients, flavor profile that appeals to a wide range of palates, adaptation to different climates, powerful marketing, and ongoing innovation.
