KFC Franchise Guide

Welcome to join KFC Franchise

Dear friends,

China Yum Brands Group welcomes like-minded people Partners join the KFC franchise and create a bright future together.

China Yum Brands Group is a catering chain enterprise with complete organizational structure and good reputation that operates brands such as Pizza Hut and KFC. It is a wholly-owned subsidiary of the American Yum Brands Group. China's Yum! Brands was established on October 7, 1997, when PepsiCo separated its three restaurant brands - KFC, Pizza Hut and Taco Bell - to form Yum! We have more than 1,000 KFC and more than 120 Pizza Hut restaurants in China. At the same time, Taco Bell also opened its first restaurant in Shanghai in May 2003. Currently, only a small portion of all Yum China restaurants are franchised.

China Yum’s franchise program provides unique opportunities for its franchisees. This opportunity is when you receive trademark, operational, systems and marketing support from a large international organization, while owning your own company and gaining a sense of accomplishment and profit. We firmly believe that under our professional leadership and the guarantee of international brand quality, joining as a KFC franchisee will create a different and successful life for you!

China Yum Brands

KFC franchise introduction

How to apply for franchise

We are committed to our customers and provide high-quality services, so we have relative requirements and choices for franchisees process, our rigorous selection procedures enable both parties to carefully examine relevant facts and figures. If you are willing to become a part of us, please read the following instructions carefully to learn more about all the required qualifications. If you are passionate and have the same beliefs as us, we sincerely welcome you to join us. Become a KFC franchisee. KFC's franchise in China is a franchise that does not start from scratch

A franchise that does not start from scratch means that KFC resells a mature and profitable restaurant to franchisees. The difference from the usual franchise model is that franchisees do not need to start from scratch, avoiding the large and complex work of selecting locations, opening stores, recruiting, training and managing employees. Among them, deciding where to open a store is often the key to success. Taking over a profitable KFC restaurant from China Yum Brands will greatly reduce the risks for franchisees and increase their chances of success.

As an international brand, KFC believes that “not starting from scratch” franchising in the Chinese market is the best way to start at this stage. It can ensure that franchisees integrate into KFC's standard management system as soon as possible and develop together. We hope that you are a powerful investor and operator who is truly eager for development, agrees with KFC's corporate culture, has an entrepreneurial spirit, has good business management experience in related industries, is willing to engage in business management in the service industry, and is willing to handle daily tasks. No record of criminal or bankruptcies in business matters. Willingness to relocate to other cities for business. No conflicts of interest with all Yum brands. This is a long-term partnership.

The initial term of the franchise agreement is at least ten years. Future franchisees must voluntarily engage in KFC franchising for more than ten years. Investment funding requirements

The initial investment for each franchisee is different

New franchisees will be To authorize an operating KFC restaurant, the purchase fee for each restaurant will be at least more than 8 million yuan (including all restaurant decorations, equipment, profits, leases and employee transfers, but excluding the purchase of real estate).

Franchisees may arrange their own financing. However, our franchisees invest no less than 70% of their own funds in the project.

The following fees are the same for all franchisees

A franchise initiation fee is payable at the start of a franchise. This fee is a one-time fee and will be based on the current year's U.S. The price index will be adjusted. At the same time, each franchisee will have to pay this fee when developing a new store.

Ongoing operating expenses include franchise royalties and advertising sharing expenses. These rates and fees are established on a current basis and will remain unchanged for ten years after the franchise contract is signed. Selection of franchise areas

Based on the overall development needs of China Yum in China, we have selected existing KFC restaurants located in different provinces and provided them to franchise applicants who are qualified to join.

At present, we mainly provide certain franchise opportunities in small and medium-sized cities in China, areas where KFC restaurants have opened. Like all our international standard franchise agreements, all franchisees do not enjoy regional and exclusive rights to business districts. Training is a key factor for success

Successful candidates will be required to participate in an extensive 13-week training program before operating a restaurant. The 13-week restaurant training enables franchisees to effectively master the operation of a successful restaurant. Courses you need to know about shift management and leading a restaurant also include learning about various workstations such as burger workstations and French fries workstations.

After the franchisee takes over the restaurant, he must also arrange a long-term restaurant management internship. During the training process, prospective franchisees will bear their own expenses (transportation costs, living expenses). It's a big investment for both parties

Before you get a franchise opportunity from us, it's important that you understand that this is a big commitment for both parties.

The capital you invest is substantial and involves risk. Before you get started, we ask you to seek some independent financial guidance.

Similarly, this is a long-term business partnership for at least ten years for our company. Because of this, we will only start working together if we are completely satisfied with your organizational structure, financial situation and project plan. The entire application, training, and review process takes about six months.

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Remarks

Currently, franchising does not adopt the method of opening new stores in own stores/locations. If you have your own store recommendations,

You are welcome to contact the development departments of local branches.

The company has the right to make its own discretion regarding the application materials. Applications that have not been accepted will not be responded to.

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Franchise application process Franchise application process ( The estimated time for the entire cycle from formal application to store transfer is about 6 months)

Check the KFC website franchise channel introduction: www.kfc.com.cn

Or call to join Hotline: (86) (21) 34254515

Download and fill in the "Basic Personal Information of Franchise Applicants" application form

After filling in, email to china.kfcfranchise@yum.com

Or fax to: (86)(21)6426 7237

If the information passes the preliminary review,

We will reply within 14 days

First interview

Second interview

Three-day restaurant internship

Third interview

Confirm qualificationsamp ; Conduct 13 weeks of training

Select a restaurant and sign a letter of intent

Accept the restaurant and officially operate it

The company has the right to make its own discretion on the application materials. Applications that have not been accepted will not be responded to.

Franchise FAQ

Q: In addition to KFC, can I join another brand, Pizza Hut?

A: Currently, Pizza Hut Happy Restaurant is not open yet franchise. However, we have another franchise opportunity - Pizza Hut Home Delivery (for more information, please check our Pizza Hut website)

Q: Can I join without experience in the catering industry?

Answer: Yes, but it must be reminded that the franchisees we are looking for must have rich management experience, good operational concepts, and the concept of paying attention to customer service. He himself must also have successful management performance

Q: After applying to join, if I don’t have time to run the business, can I find others to help me run the business?

Answer: The applicants we require should be composed of main operators and partners. Of course, one person can also apply alone, and the main operator will participate full-time in the future operation and management of the restaurant. In addition, only personnel approved by us can participate in the actual management of the restaurant.

Q: I don’t have enough funds, can I find a partner?

Answer: Yes, you can find your partner, but your partner must also accept our understanding with investigation and approval by our franchise committee. And the main operator's capital must be greater than 30.

Question: What does KFC mean by "mature restaurant"?

Answer: It is a KFC restaurant that is already in operation. It is not starting from scratch or you choose the address yourself. , you are not providing a facade room, you are not decorating it yourself... at the same time, there is a stable cash flow.

Q: What does "transfer" mean?

Answer: It means transferring or selling a restaurant that has been in normal operation for more than one year to our approved franchise applicant. He can avoid Franchisees are responsible for a large number of complex tasks such as site selection, store opening, recruitment and training of employees, etc., thereby reducing franchise risks and increasing chances of success.

Question: What does the franchise investment purchase fee of more than 8 million refer to?

Answer: More than 8 million is the indicator of the transfer fee for a franchisee to invest in a mature restaurant. It includes all the restaurant's equipment, decorations, profits, personnel... but does not include the restaurant's real estate rental costs. This fee must be paid in one lump sum before transferring the restaurant. The amount of the fee is mainly based on the evaluation of the restaurant's operating conditions.

Q: The franchise period is ten years. Will the contract be renewed after the ten-year operation period?

Answer: Our franchise agreement period is ten years. If it is within the operation period, If our standards are met, we will renew the contract for another ten years. In addition to the renewal fee of half of the initial franchise fee, no other fees are required for renewal.

Q: What is the "franchise initial fee"? Is it not included in the franchise investment purchase fee of more than 8 million?

Answer: "Franchise initial fee" It is our global franchise initial fee, which means that if we open a restaurant in China, we have to pay this fee, which is a one-time fee. It will make some corresponding adjustments based on the U.S. price index for that year.

Q: If I have a good property, can I cooperate with you?

Answer: Our current franchise method is the transfer of mature restaurants, but if you are willing to lease your property to our company, please contact the KFC Development Department where you live. Contact us and they will evaluate whether your property meets our needs. You can check local 114 to get the phone number of the local company development department.

Q: Can I choose a restaurant in the city where I live as a franchise location? When we choose a restaurant, we consider factors such as the development of the entire Chinese market. Therefore, we only select franchisees after they are approved by our committee. You can select a limited range of restaurants from the information and regions we provide. This means that no one can make any choice.

Contact Us

If there is anything not covered in this guide and you need to contact KFC further, you can contact us directly.

If you are interested in joining, please contact

Yum Franchise Development Department

Yum (China) Investment Co., Ltd.

Address: Shanghai No. 30 Tianyaoqiao Road, 21st-22nd Floor, Metro Building

Postcode: 200030

Hotline: (86) (21) 3425 4515

Fax: (86) (21) 64267237

email: china.kfcfranchise@yum.com

Answer: xiulock - Tongsheng Level 1