KFC Franchise Owner’s Salary & Profit 2024

Are you a big fan of the tender and crispy chicken burgers of KFC? Do you want to have your own KFC restaurant? Well, Kudos to you, but owning a KFC franchise is not that easy.

In this guide, we have answer burning questions like how much does a KFC franchise owner make? What is the initial investment needed? What is the payback period for the KFC franchise and more?

So let’s look at the details closely.

How Much Does A KFC Franchise Owner Make

About KFC

With more than 24,000 restaurants worldwide, KFC is one of the most renowned quick-service restaurant chains in the world.

KFC was founded by Harland Sanders in 1952 in Salt Lake CityUtah, under the name “Kentucky Fried Chicken.” Later in the year 1991, it adopted its iconic abbreviated name, “KFC,” to create a healthy brand image.

Today KFC is a part of Yum Brands, Inc., which is the world’s largest restaurant company, and 99% of its locations are franchised.

Now if you are willing to own this world-famous franchise, then you must have guessed that doing so is not that simple.

Moving ahead, we will share what it takes to qualify to own this franchise and how much money you can make a KFC franchise owner.


Investment Required to Own a KFC Franchise

Several factors determine the amount of investment you are required to put in. However, to give you an idea, here’s how much initial investment you will need to open a KFC franchise:

  • For new ground-up construction – $1,442,600 to $2,771,550.
  • To re-open or remodel – $1,00,8600 to $2,221,500.
  • For non-traditional outlets – $253,600 TO $1,003,500.

((https://www.kfc.com/franchising/investment))


KFC Franchise Key Stats

Cost Or FeesAmount
Franchise fee$45,000
Royalty fee5.0%
Marketing fee4.5%
Investment (mid-point)$2,107,075
Payback period5.5 years
Minimum net worth$1,500,000
Minimum liquid capital$750,000

How Much Does A KFC Franchise Owner Make?

The sales figure of each KFC franchise differs based on their location, operating cost, advertisement expenses, service, etc.

However, according to the FDD, on average, a KFC franchise owner makes $1,567,474 in sales per year.


How Much Does A KFC Employee Earn?

How Much Does A KFC Employee Earn

According to ZipRecruiter, KFC pays its employees a minimum of $10.65 an hour and a maximum of $27.88 an hour on average.

The salary of a KFC employee may vary based on their skill set, department, location, position, etc.

For example, a KFC employee at an entry-level position with the job title of Shift Manager earns $22,142 a year, while an employee at a higher-level position with the job title of restaurant Assistant Manager makes $58,000 a year on average.


Pros & Cons Of KFC Franchise

Pros Of KFC Franchise

  • Provide training and on-going support.
  • Global presence.
  • Highly profitable.
  • Larger customer following.
  • Proven expertise.

Cons Of KFC Franchise

  • High-cost investment.
  • External competition.
  • Does not offer financing to new franchises.

KFC Franchise Average Revenue & Profit

Unlike many other restaurants, KFC is quite transparent about the performance of their franchised outlets and offers a lot of information in the FDD.

So KFC franchise owner makes a profit of $391,868 annually on average, which corresponds to a 25% profit margin.

This is one of the highest profit amounts that we have seen in the quick-service restaurant industry.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%1567474.00
Rent9.38%(146950.69)
Insurance4.69%(73475.34)
Salaries18.75%(293901.38)
Franchise Royalty Fees4.69%(73475.34)
Utilities1.88%(29390.14)
Cost of Goods Sold (COGS)23.44%(367376.72)
Labor (Variable)12.19%(191035.89)
Total (Expenses)75.00%(1175605.50)
Net Profit25.00%391868.50

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


KFC Overall Company Revenue & Profit

KFC has been witnessing steady growth in the recent years. And in 2022, KFC generated $2.83 billion in revenue, an impressive jump from the previous year’s revenue of $2.79 billion.

This strong financial performance is a testament to the brand’s enduring popularity and its ability to operate successfully in multiple countries around the world.


KFC Franchise Failure Rate

To find out the failure rate of KFC have a look at this table:

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20193,9803,969-11
20203,9693,860-109
20213,8603,872+12

For the Franchised outlets:

  • In 2019, the failure rate was (11)/3,980×100≈0.27%
  • In 2020, the failure rate was (109)/3,969×100≈2.74%
  • In 2021, the growth rate was (12)/3,860×100≈0.31%
YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20195556+1
20205647-9
202147470

For the Company-Owned outlets:

  • In 2019, the growth rate was (1)/55×100≈1.81%
  • In 2020, the failure rate was (9)/56×100≈16.07%
  • In 2021, the failure rate was (0)/47×100≈0.00%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20194,0354,025-10
20204,0253,907-118
20213,9073,919+12

For Total outlets:

  • In 2019, the failure rate was (10)/4,035×100≈0.24%
  • In 2020, the failure rate was (118)/4,025×100≈2.93%
  • In 2021, the growth rate was (12)/3,907×100≈0.30%

According to the above-mentioned data, the franchised outlets for KFC declined from 2019-2020, showing a failure rate between 0.27% and 2.74%. But later, in 2021, it started growing, showing a growth rate of 0.31%.

On the other hand, for company-owned outlets, the failure rate of KFC was lying in the range between 16.07% and 0.00% for 2020-2021. In 2019, it showed a growth rate of 1.81%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the KFC franchise has expanded in the year 2022 showing a total growth rate of 0.30%. The company started with negative net change, showing a failure rate between 0.24% and 2.93% from 2019-2020.


KFC Franchise Payback Period

To determine the KFC franchise payback period, let us do some calculations.

AVERAGE INVESTMENT$2,107,075
AVERAGE REVENUE PER OWNER$1,567,474
AVERAGE PROFIT PERCENTAGE25%
AVERAGE PROFIT PER YEAR$391,868
AVERAGE PAYBACK PERIOD5.5 Years

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR

= 2107075/$391868 = 5.37 = 5.5 Years based on median

The average investment for a KFC Franchise is $2,107,075 and the average revenue per owner is $1,567,474.

With an average profit percentage of 25%, the average profit per year is $391,868.

This means that the average payback period for a KFC Franchise is 5.5 years, as the total average investment of $2,107,075 would be recouped within this period.


KFC Might Be The Hardest Franchise To Get

Getting your hands on one of the world’s most popular franchises is obviously not going to be easy. KFC franchise is quite expensive, and you can be eligible to own this franchise only if you meet the following criteria:

  • Have an initial investment of $1,442,600 TO $2,771,550.
  • $750,000 Total Liquid Assets.
  • $1,500,000 Total Net Worth.
  • Strong credit report and history.
  • Business experience.
  • Sound personal reputation.

For owning Multi-Unit Operations, you need to have the additional:

  • Successful business ownership experience.
  • Proven track record in the operating hospitality business or multi-unit restaurant.

((https://www.kfc.com/franchising/faq))


Facts About KFC

Facts About KFC
  • KFC’s 11 herbs and spices recipe is a super secret, and now the recipe is kept locked at the headquarter of KFC, with only a few members having access to it.
  • To keep the recipe of KFC a secret, there is a company that prepares the first half of the 11 spices and moves it to McCormick, who prepares the rest of the half before sending it back.
  • Eating KFC chicken on Christmas day is a tradition in Japan that became popular after a marketing camping KFC run in 1974.
  • There is a KFC for deaf people in Egypt, Pakistan, and India that is handed by and made for deaf people.
  • KFC is called “Poulet Frit Kentucky” in Quebec, Canada, which is the French name for Kentucky Fried Chicken.
  • You can get yourself a KFC Crocs.
  • In 2019 Pizza Hut and KFC came together to create a Popcorn Chicken Pizza together.
  • A couple got engaged in a KFC outlet in South Africa, and the chain paid for their wedding.
  • In the year 2007, a girl of age seven got paralyzed after eating KFC chicken.
  • The founder of KFC has his own game called Colonel Quest, where the player has to collect as much chicken as possible.
  • The Colonel also has a comic book about him which depicts his life till he founded KFC.
  • There are more KFC outlets in China than in the United States.
  • KFC’s tagline “Finger lickin good” was not translated correctly in China, and for a while, it was “eat your fingers off” there.
  • The largest KFC outlet is in Baku, Azerbaijan.
  • For KFC, the busiest day of the year is on Mother’s Day.
  • In 2016, KFC launched edible nail polishes that came in Hot & Spicy and Original flavors in Hongkong.
  • In the year 1964, Colonel Sanders sold KFC to investors for $2 million.
  • KFC’s first franchise location came up with the slogan “Finger lickin good” and even invented the famous “Bucket.”

((https://www.kickassfacts.com/kfc-facts/))


What Is KFC Known For?

KFC is a quick-service restaurant chain that is well-known for its fried chicken and chicken bucket.

The secret to their juicy, flavorful, and crispy chicken lies in the secret recipe of 11 herbs & spices that the founder came up with when he opened KFC.

In spite of so much external competition, the reason why KFC has been able to maintain a firm hold on the market is due to not one but several reasons.

KFC sources fresh chicken from trusted suppliers that undergo 34 quality checks which is prepared and cooked at a similar temperature each time, among other things.

Here are some of the most popular items on the KFC menu worldwide:

  • Chicken Pot Pie. 
  • Original Recipe Chicken Breast. 
  • Chicken Sandwich. 
  • Popcorn Chicken Nuggets. 
  • Mashed Potatoes with Gravy. 
  • Mac & Cheese Bowl. 
  • Original Recipe Chicken Drumstick. 
  • Secret Recipe Fries
  • Popcorn Chicken Large
  • Cole Slaw

Is KFC Franchise Profitable?

KFC is the second-largest restaurant chain in the world after McDonald’s, earning revenue is $6.8B annually.

Since 99% of its locations are franchise-owned, investing in a KFC franchise is definitely profitable.

By putting in an initial investment of $1,442,600 to $2,771,550, you can make a profit of $391,868 a year on average. 


KFC Franchise Earning Potential

According to the company’s website, a new KFC store opens in every six hours daily, and if we look at the growth figure of KFC then in the year 2022, there was a 36.86% revenue growth.

The increase in sales and revenue increases profit. So a KFC franchise owner has the potential to make a solid amount of profit, and if the positive revenue growth continues in the coming years, then a KFC franchise owner will be able to make much more than the average profit of $384,031 a year. 


Wrap Up

After reviewing the KFC franchise in detail, this is what we think:

Since KFC is the second-largest restaurant chain in the world, getting your hands on a KFC franchise is not easy. There are strict criteria to meet, a hefty investment to make, and a 12-week-long opening process waiting time.

However, if you do qualify to own this franchise, you will be able to make an amazing amount of profit with continuous foreseeable demand.

Overall, KFC is a great franchise to invest in.


Frequently Asked Questions

What is the franchise fee for KFC franchise?

KFC charges a franchise fee of $45,000.

How much royalty and marketing fee does KFC charge?

KFC charges a royalty fee of 5.0% and a marketing fee of 4.5%.

Does KFC offer financial assistance to franchises?

Yes, it does, but it offers financing opportunities to minority groups only, which can be a deterrent for potential franchises as the initial investment is quite high.

Who owns KFC?

KFC is owned by Yum! Brands that also own Pizza Hut and Taco Bell.

Who is the founder of KFC?

Colonel Harland David Sanders founded KFC. He was an American entrepreneur and later acted as the brand ambassador of KFC.

How many locations does KFC has?

In 2023, there were more than 25000 outlets of KFC in 147 countries and territories.

Where is KFC headquartered?

The headquarters of KFC is located in Louisville, Kentucky, United States.

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