KFC
Financial Plan
Liquid capital
The amount you need to secure the necessary loans.
Total investment
Total Investment to launch the business, including initial fees ($45,000)
The Concept
KFC is a U.S. quick-service restaurant franchise specializing in fried chicken and related menu items, including chicken sandwiches, tenders, sides, biscuits, desserts and beverages. The brand is operated in the United States by KFC US, LLC, part of Yum! Brands.
KFC has offered franchising in the U.S. since 1952. The current U.S. franchise model primarily targets experienced multi-unit operators, with development agreements available for multiple restaurants. As of the end of 2025, the U.S. system had 3,404 franchised restaurants and 86 company-owned restaurants, for 3,490 total outlets.
Frequently Asked Questions
How much does a KFC franchise cost?
For a newly constructed traditional KFC restaurant, the 2026 FDD estimates total initial investment at approximately $2.11 million to $4.16 million. The initial franchise fee is $45,000.
Does KFC require previous restaurant or franchise experience?
KFC’s U.S. franchise model is geared toward experienced multi-unit operators. The franchisor seeks candidates capable of developing and operating multiple restaurants rather than primarily targeting first-time single-unit franchisees.
What is the KFC franchise fee?
The initial franchise fee is $45,000. Under the 2026 FDD, this consists of a $20,000 deposit and a $25,000 option fee.
What royalty does KFC charge franchisees?
The 2026 FDD indicates a royalty of 4% to 5.25% of gross revenue, depending on the applicable franchise arrangement, subject to a minimum monthly payment of $1,440. A separate 5.8% advertising/brand fund contribution is also disclosed.
How much revenue does a KFC franchise generate?
KFC does not provide a single systemwide average annual revenue figure suitable for use as an AUV. Its 2026 FDD does, however, provide financial-performance information for qualifying outlets. For a cohort of 2,227 outlets open for at least 12 months, reported 2025 net sales ranged from $387,000 to $3.379 million.
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Latest News from KFC
KFC Ends Its 40-Year PepsiCo Partnership, Switches to Coca-Cola Across Its US Network
After four decades as KFC's exclusive US beverage supplier, PepsiCo is being replaced by Coca-Cola across the chain's American franchise network. The transition, announced October 15, affects all KFC franchise operators in the United States and ends a partnership that dates to the era when PepsiCo directly owned the fried…
