How to Start a KFC Franchise in India?

Every person dreams of having their business set up and, hopefully, a successful one. Buying a franchise is one of the most common yet significantly huge and wise steps.

If you are someone interested in starting a food business or retail food business, setting up a franchise of some famous and profitable company could be a very smart move.

One of the most popular examples that we have all witnessed is the growth of the Amul franchise. Today, KFC is giving McDonald’s a run for its money. If you are thinking of starting a KFC franchise in India but are unaware of all that it would require, this is the blog for you!

We have listed all that is important for you to know, from investments to license and from commercial areas required to business loans!

What are the benefits to a franchisee?

  • Advertising: A franchise business is typically better branded and advertised in comparison to other local and traditional businesses. The cost of branding and advertising gets shared by all the franchisees, meaning a lesser burden on the individual franchisee.
  • Local market knowledge: Not everybody has the real estate, business, or legal knowledge required to set up businesses in a diverse country like India. However, franchisors work with franchisees who are well aware of all the local market conditions, and hence, chances of success are higher.
  • Minimal operating cost: The franchisor negotiates the volume pricing and group buying instead of the franchise, leading to a lower operating cost for the franchisee.
  • Training: The franchisor provides the franchisee with the required technical training in order to enable the franchisee to run the franchise effectively.
  • Easy gain of capital: As a result of an already established reputation of the franchise, gaining business loans and MSME loans is simple and hassle-free.
  • Minimal risk to the franchisee: Since the business is already developed by the franchisor, there is a minimal business risk to the franchisee.

Apply for Business Loan

Why is starting a KFC franchise in India a good idea?

  • KFC specializes in the original recipe and is one of the world’s most famous fast-food joints.
  • KFC franchise is in great demand because of its popularity as one of the best Quick Service Restaurants to exist.
  • KFC gives good competition to the Amul franchise, which is one of India’s highly successful franchises.
  • KFC has a very successful experience of creating a strong franchise-led outlet model, especially in India, where the demand is always at its peak.
  • It already has 300+ restaurants spread across 100 cities in India, and there is no looking back.
  • Their trademark food items like Chicken Popcorn, KFC Hot Grilled Chicken, Extra Crispy Boneless Chicken, and so on have created a unique impression on the customers who know what their taste buds crave after they visit KFC.

What are the requirements for starting a KFC franchise in India?

In order to start a KFC franchise in India, you require:

  • An investment of rupees 1-1.5 crores
  • 1000-1600 square feet commercial space that meets the guidelines of the company
  • A strong experience in the retail food industry
  • A franchise term of about 20 years
  • 4-5% royal commission on the actual sales to be paid
  • Minimum investment of 20 lakhs
  • Outlet space in a prime business area
  • Managerial experience
  • A good financial capacity
  • On meeting the company’s criteria, the license to use KFC trade names, trademarks, and logos is granted by the Food Franchise Agreement of KFC and is very important.

Here’s how you can apply for a KFC franchise in India?

To apply for a KFC franchise in India, the following steps can be applied:

  • Go to KFC’s official company website.
  • Click on the “Alliance with Us” option from a range of options available.
  • In doing so, a Franchise application from India would pop up.
  • Fill in the KFC application form to be able to apply for the dealership.
  • The application form is exhaustive and requires a lot of personal and professional details.
  • The support staff of KFC then reviews the form and evaluates it based on certain standards.
  • If the application gets selected, the candidate is contacted for further discussion.
  • The company organizes certain training programs for the franchisee to learn the ropes of businesses. The franchisee, along with his/her employees, has to mandatorily attend the training for the company to gauge their capabilities for running the franchise with proficiency.

Financial help you can get

  • MSME Loans: MSME loans, or Micro, Small, and Medium Enterprises loans, are unsecured loans offered by various financial institutions with a specific eligibility criterion that applicants need to meet. These loans are hassle-free and require minimum documentation. For potential business owners that possess the zest and skills to up their business game but lack capital to invest in the franchise business, MSME loans provide a great option. Be it clothing franchise, tea time franchise, domino’s pizza franchise, DTDC franchise, or infrastructural franchise, or any other franchise, these loans can help you fulfill your dream of having your franchise of any huge brand!
  • Business Loans: Business loans are one of the commonly taken loans to grow any business. Without excessive paperwork and documentation, one can acquire these loans within just a few days of submitting a request. They have flexible tenures and are free of long procedures. Loans can be availed within a matter of 3-4 days. The major difference between MSME loans and business loans is that business loans grant a much larger amount in comparison to MSME loans.

Easy business loans for your aid

The KFC franchise business is sure to bloom, and investing in this business could be very rewarding. You no longer have to worry about business loans, MSME loans, and top-up loans because Ziploan provides you with the best opportunities!

An RBI registered NBFC intending to render loans at amazing prices, Ziploan is a tech-driven digital lender that considers basic eligibility criteria for disbursing loans.

From availing of business loans in just three days to have minimal documentation and no prepayment charges, Ziploan can ease your way in the franchise business. Think wisely and choose the best for your future!

Apply for Small Business Loan

Frequently Asked Questions

What is the cost of KFC franchise in India?

Generally, to commence a KFC franchise in India, you probably need an investment of around Rs. 1-2 Crores with a 1,000 – 1,500 sq. ft.

Is KFC franchise profitable?

Based on various magazine estimates KFC is able to make a good profit ranging from 7% to 8% of the total sales.

How do I open a KFC outlet?

To start a KFC franchise you will need:
1) Space
2) Working Capital
3) Name of the owner/s who owns the property
4) Contact details
5) Complete postal address of potential KFC store
6) Actual photographs of the venue
7) Available parking space

How much is KFC worth?

In 2020, the KFC brand was valued at just over 5.1 billion U.S. dollars, down from the previous year’s total of 5.51 billion U.S. dollars.

Who is the real owner of KFC?

KFC was founded by Colonel Harland Sanders, an entrepreneur who began selling fried chicken from his roadside restaurant in Corbin, Kentucky during the Great Depression.

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