The KFC fast food chain is operated by China Yum Brands in China, and matters related to joining KFC are managed by the Franchise Development Department of Yum (China) Investment Co., Ltd.
Currently in China, KFC franchises are limited to small and medium-sized cities. Beijing, Shanghai, Suzhou, Wuxi and the entire province of Zhejiang are not allowed to join, so Hangzhou is not within the scope of its franchise license. KFC's franchise method is "franchising without starting from scratch", that is, the new franchisee will be authorized to operate a KFC restaurant that is already in operation, but will not be able to independently choose a location to open a new KFC restaurant. In other words, KFC's franchise method has the nature of "restaurant transfer". However, the requirements for this "transfer" are strict. Franchisees cannot freely choose KFC restaurants and request transfer. Instead, they can choose restaurants with restrictions from the information and regions provided by Yum Brands.
In addition, franchisees must meet the following requirements: college degree or above; identify with KFC’s corporate culture; have entrepreneurial spirit; have relevant industry experience; have no criminal or bankruptcy records; and other brands operated by Yum! Such as Pizza Hut, Taco Bell), no conflict of interest, etc. After qualification approval, franchisees will also receive 13 weeks of catering management training.
Joining KFC will be a long-term cooperative relationship, and the initial term of the franchise agreement is at least 10 years. At the same time, joining KFC requires strong financial strength. The current KFC franchise fee ranges from 2 million to more than 8 million, depending on the store area, profitability and other factors. The funds include expenses such as restaurant renovations, equipment, profits and employee transfers, but do not include the purchase of real estate. Franchisees can arrange their own financing methods, such as bank loans, finding partners, etc. However, the proportion of franchisees' own funds invested in the project cannot be less than 70%.
KFC will not start cooperating with the franchisee until its organizational structure, financial status and project plan are fully recognized. The application procedures for joining KFC are: download the application form and send it to Yum Brands via email or fax; two interviews; three days of restaurant internship; third interview; confirm franchise qualifications and select a restaurant, sign a letter of intent; and conduct a 13-week internship. Catering training; taking over the store and officially operating it. The entire application, review, and training process takes approximately 6 months.