Kfc Marketing Strategies

Topics: KFC, Fast food restaurant, Fast food Pages: 64 (20164 words) Published: April 11, 2012
Click on one of the questions below to learn more.

How much will I pay in royalties and advertising? What fees will I pay when I become a KFC franchisee? Initial Franchise Fee = 

Monthly Service Fee (Royalties) = 

Advertising =
$45,000 (if you open a KT multi-brand restaurant, the fees will be $75,000) 

5 percent (5%) of Gross Sales

5 percent (5%) of Gross Sales (Includes national and local contributions)

The above amounts do not include the initial investment required to construct the restaurant building, training expenses, grand opening expenses or opening inventory. Please refer to the KFC Franchise Disclosure Document (FDD), Item 7, for more in-depth information on the total investment.

How long will it take to get approved as a franchisee?
Initial qualification involves a series of background checks and interviews and generally takes 10-12 weeks. After that, site registration and approval can take three to nine months, but is dependent on when you submit a site for registration.

How long will it take to build my restaurant?
Generally, once your site has been approved through the internal site registration process and you have signed your option agreement, you have eight months to begin construction and one year to open for business.

Who will build my restaurant?

Will you provide plans and an equipment list? Can I use equipment that I already own or used equipment?

There’s already a KFC in my market, can I add another one? Existing KFC operators have a protected territory of 1.5 miles or 30,000 people, whichever is smaller. Outside of that, KFC seeks to build in quality trade areas that allow for reasonable store spacing in a market. Stores are only approved if the sales impact on existing KFC restaurants is below established standards. Your KFC representative can explain these standards.

Does KFC plan to sell any company-operated restaurants in my area? Can I get a list of all the restaurants available for sale? KFC may sell existing company owned units to existing or new franchisees. Given that these stores are operating today, we do not issue a summary list of what is available. If you are qualified as a KFC franchise candidate and have indicated that you would like to buy stores in a specific geographic area, we will determine if we have stores for sale that meet your request.

What will my sales be?
KFC makes an Item 19 financial performance representation in their FDD . You will receive an FDD once you have submitted a completed franchise application. Prospective franchisees are encouraged to conduct their own independent investigation to determine potential sales levels prior to signing any Franchise Agreement. Existing franchisees are a resource you can use for more KFC franchise information. A list of domestic franchise units, the franchisee's name and phone number are listed in the FDDs.

How much money will I make? What will be my profit percentage? What are the profit margins of other franchisees? What kind of return on my investment may I expect?

How much will food and supplies cost? What suppliers should I use? You are required to purchase supplies from approved suppliers only. KFC will provide you with a list of approved suppliers. KFC provides some key cost information in Item 19 in the FDD. The United Foodservice Purchasing Co-Op (UFPC) works on behalf of the entire system to secure the most favorable pricing for necessary items.

Can I use my own recipes and menu ideas?
Franchisees must sell only approved products in their restaurants. Menu ideas can be submitted for evaluation by the Food Innovation Team but must receive approval prior to being sold in the restaurant.

What type of marketing materials and support will I receive? KFC is continually working to develop new products and to improve existing products. Franchisees receive a calendar of upcoming events from the brand marketing departments as well as order forms for POP and other advertising...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Marketing Strategy Essay
  • Vizio Marketing Strategy Essay
  • Essay on Impact of globalisation on marketing strategies
  • Amazon's Marketing Strategy Essay
  • B2B and B2C Marketing Strategies Essay
  • Ikea Marketing Strategy Essay
  • Essay about Marketing Strategy of Mcdonald's Corp.
  • Marketing Strategies of a-Gantea Essay

Become a StudyMode Member

Sign Up - It's Free