Estimated initial costs
Our cost estimates are accurate as of 2021 from Franchise Direct and include opening fees and expenses only. The location you choose for your KFC franchise may result in higher or lower fees.
Franchise feesKFC franchise fees total around $5,400, which beats out the $37,000 average for the 200 largest franchises nationwide.
|Application and background check fee, per person||$300 to $500|
|Grand opening expenses||$5,000 to $5,000|
|Royalty||4% to 5% of gross revenue or a minimum of $1,260, whichever is greater, per month (minimum fee subject to adjustment based upon the Consumer Price Index).|
|Estimated total||$5,300 to $5,500|
Real estate feesReal estate will set you back $750,000 for KFC, thought it's less than the average of $788,376 for the top 200 franchises.
|Real property||$400,000 to $1,100,000|
|Estimated total||$400,000 to $1,100,000|
Training feesKFC initial training costs total $8,500, which comes in under the nationwide average of $9,788.
|Training expenses||$7,000 to $10,000|
|Estimated total||$7,000 to $10,000|
Insurance costsInitial insurance costs for KFC run $8,650. This means you'll be paying more than the overall nationwide average of $6,311.
|Insurance||$7,250 to $10,050|
|Estimated total||$7,250 to $10,050|
Other expensesMiscellaneous expenses for KFC total $70,000 — more than the nationwide average of $69,970.
|Miscellaneous costs||$5,000 to $10,000|
|Additional funds||$50,000 to $75,000|
|Estimated total||$55,000 to $85,000|
How to financeSince the estimated total for KFC is on the more costly side, we recommend following these steps to get fully financed:
- Go to the KFC franchising website and review its financial requirements, including cash-on-hand requirements.
- Reach out to KFC about in-house financing for franchisees.
- If in-house financing isn't available, look for online loans, bank loans and SBA loans to help meet the $842,550 estimated opening costs.
- Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
- Once you settle on a lender, gather all required documents, including account statements and assets.
- Apply for financing online or in person as required by the lender.
What types of financing is available?You have several options when it comes to financing a KFC — even if the cost is on the heavier side. What assets you have available will largely determine how much you need to borrow, and which option suits you best.
- Online loan. A number of online business lenders offer amounts up to $1 million, with some extending up to $5 million.
- Bank loan. Your personal credit will typically need to at least be good — 670 or higher — when it comes to getting a bank loan large enough to cover a significant portion of KFC opening costs.
- SBA loan. While your personal credit score doesn't need to be as good to qualify for an SBA loan, they usually cost more than standard term loans from banks or online lenders.
Compare small business lendersYou may not need financing to cover the estimated $474,550. But if you need funds for other business ventures, select the loan amount, your time in business and revenue and your personal credit score to compare a selection of lenders.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How KFC stacks upCompare how KFC holds up against two similarly sized franchises.
|Average Franchise fees||$22,500||$5,400||$32,500|
|Average Equipment fees||$937,500||NA||$516,600|
|Average Real estate fees||NA||$750,000||$1,165,500|
|Average Training fees||NA||$8,500||NA|
|Average Inventory fees||$22,500||NA||$7,250|
|Average Marketing fees||NA||NA||NA|
|Average Licenses and permits fees||NA||NA||$18,000|
|Average Insurance fees||NA||$8,650||$16,500|
|Average Admin fees||NA||NA||NA|
|Average Personnel fees||NA||NA||$44,500|
|Average Other fees||$51,500||$70,000||$52,500|
Bottom lineKFC franchise costs run a total of $842,550. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing read our guide to franchise financing.
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