These second- and third-tier cities that KFC promotes do not only have two prices, that is, either 2 million or 8 million. Franchisees can "bargain" with KFC in the price range of 2 million yuan to 8 million yuan depending on the location, popularity and operating conditions of the store.
McDonald’s had previously launched a franchise fee of 2.5 million to 3.2 million yuan, but everything had to start from scratch. KFC, which already dominates the Chinese market, has lowered its franchise threshold this time, which will undoubtedly put greater pressure on McDonald's.
If you want to invest in fast food, it is recommended to choose second- and third-tier domestic and foreign fast food brands with reasonable prices and certain successful experience. The threshold of McDonald's and KFC is too high and the risk is too great.
Joining instructions:
China Yum! Brands welcomes like-minded partners to join KFC franchisees 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. Yum Brands was founded on October 7, 1997, when PepsiCo separated its three restaurant brands - KFC, Pizza Hut and Taco Bell - to form Yum Brands. 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 international brand quality assurance, joining as a KFC franchisee will create a different and successful life for yourself.
How to Apply
Our strict selection process enables both parties to carefully examine relevant facts and figures. Listed below are the details that our franchisees should know
01-Franchise Advantages and Benefits
KFC’s franchise in China is a franchise that does not start from “zero”
"Not from scratch" franchising 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's 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 can integrate into KFC's standard management system as soon as possible and develop together.
02-Apply for franchise qualification
We hope that you are a strong investor and operator who is truly eager for development
·Identify KFC’s corporate culture
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· Have entrepreneurial spirit
· Have good business management experience in related industries
· Willing to engage in business management in the service industry
· Willing to handle daily business matters
· No criminal or bankruptcy record
· Willingness to move to other cities for career
· No conflict of interest with all Yum brands
03-Long-term partnership
This is a long-term partnership
The initial term of the franchise agreement is at least ten Year. Prospective franchisees must voluntarily engage in KFC franchising for more than ten years.
04-Investment Fund Requirements
The initial investment of each franchisee is different
The new franchisee will be authorized to operate a franchisee during operation. The purchase fee for each of the KFC restaurants in the restaurant will be at least more than 8 million yuan (including all restaurant decorations, equipment, profits, leases and employee transfers, but does not include 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.
05-Selection of Franchise Regions
Selection of Franchise Regions
According to China Yum’s overall development needs in China, we have selected existing ones that are distributed in different KFC restaurants in various provinces are available to franchise applicants with franchise qualifications.
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.
06-Pre- and post-franchising training
Training is a key factor for success
Successful candidates will be required to participate in an extensive 13-year training program before operating a restaurant. Weekly training program, 13 weeks of restaurant training enables franchisees to effectively master the shift management and restaurant leadership courses they need to understand to run a successful restaurant, and also includes learning at 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).
07-Commitment from both parties
This is a big investment for both parties
Before getting our franchise opportunity, you must It's important to 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.
Note: 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 department of local branches.