How Much Is KFC Franchise In South Africa? – A Detailed Breakdown
KFC is the world’s second largest chicken restaurant franchise. With over 25,000 locations worldwide, KFC is also one of the most popular franchises to get into. Even with that, many aspiring franchise owners have questions about whether or not it’s really worth getting into KFC as a business venture. If you plan to open your own KFC franchise, this comprehensive guide will answer all your questions and help you figure out if owning a KFC franchise is right for you.
What is KFC?
KFC is the largest restaurant chain in the world, with more than 25,000 locations across 145 countries. Founded in Louisville, Kentucky, in 1930, KFC is known for its signature Original Recipe chicken, as well as its signature drumsticks, biscuits, mashed potatoes, and gravy. Since 1996, the KFC chain has been owned by Louisville, Kentucky-based Yum! Brands, the parent company of KFC competitor Taco Bell.
Why Own a KFC Franchise?
Owning a KFC franchise is a great way to start a business and earn a solid income from the comfort of your home. KFC franchises are relatively easy to get into, and with a few months of hard work, you can earn a solid income from the comfort of your couch. The KFC franchise opportunity is a great way to start a business. With successful KFC franchises earning an average of R93,815,150.00 per year, it’s easy to see why many people choose to own a KFC franchise as a business opportunity. And while the KFC franchise opportunity certainly has its challenges, it’s also a very rewarding and lucrative franchise opportunity.
The KFC Franchise Fee
The first thing you’ll need to determine if owning a KFC franchise is right for you is the franchise fee. The franchise fee is the one price that covers all aspects of owning a KFC franchise. For example, the franchise fee covers: – The cost of the franchise agreement – The cost of purchasing the real estate (building/space) and equipment – The cost of training the franchisees – The cost of marketing the product – The cost of paying franchise support – All other expenses related to running the business The franchise fee for a single KFC restaurant is R5,543,622.50. If you want to open more than one KFC restaurant, you’ll need to pay an additional franchise fee of R3,155,600.50 for each additional KFC restaurant. However, if you don’t plan to open any additional KFC restaurants, you can pay as low as R2,132,162.50 to get started with a single restaurant.
Setup Costs
Now that you know the franchise fee, let’s talk setup costs. In addition to the franchise fee, you’ll also need to pay for some setup costs before you open your first KFC restaurant. The most common setup cost is for the building/space. Most cities have a minimum space requirement that you’ll need to meet before you can open your KFC restaurant. In some cases, you may need to buy an entire shopping center. If you plan to open multiple KFC restaurants, you’ll also need to pay for an additional build-out of the space.
Marketing Fund
The next setup cost is the marketing fund. As an independent franchisee, you’ll need to kick-start your marketing efforts before you open your first KFC restaurant. The marketing fund covers your marketing budget, which can be spent on a variety of marketing channels. For example, you may choose to invest your marketing fund in digital marketing, in-store brand promotion, or traditional advertising.
Restaurant Costs
Now that we’ve talked about the costs to get into the KFC franchise opportunity, let’s talk about the costs to run a KFC restaurant. The cost of a single KFC restaurant is R5,886,562.50. If you want to open more than one KFC restaurant, the cost per additional restaurant drops to R5,118,750.00.
Finishing Touches
Now that you know the costs to get into the KFC franchise opportunity, let’s talk about some of the other challenges you’ll face as an independent KFC franchisee. As a successful KFC franchisee, you’ll need to be ready for several challenges. For example, with a KFC franchise opportunity, you’re required to operate at least one restaurant every week for at least 52 weeks per year. Thus, as an independent KFC franchisee, you need to be ready to operate a restaurant every week for at least 52 weeks per year. If you’re lucky enough to be able to take a vacation or two during the year, you’ll still need to be ready to open the restaurant to make sure you earn the required revenue to pay your franchise fees and support costs.
Conclusion
Now that you’ve seen how much money you can make with a KFC franchise, you can decide if owning a KFC franchise is right for you. However, before you commit to buying a franchise, make sure to read the other KFC guides in this series. In this guide, we’ll go over the key numbers to know before buying a KFC franchise.
