How Much Does It Cost to Open a KFC in the United States

KFC is one of the largest franchises in the world, with more than 27,000 establishments in operation. Although it has a strong presence in the United States, 85% of its locations are abroad.

Investing in a KFC can be an attractive opportunity, but it requires a considerable investment. According to Franchise Direct, the opening costs range between $255,600 and $3,163,550, depending on the type of location and its site.

KFC: Types of Franchise and Initial Costs

KFC offers two franchise models: traditional and non-traditional.

• Non-traditional locations are smaller and have a reduced menu. They are installed in high-traffic areas, such as airports, universities, military bases, and shopping centers.

• Traditional locations are standalone and offer the full menu. They can be located in various commercial areas and require more space and resources to operate.

Key Expenses in the Investment

Opening a KFC involves costs in several areas. The purchase or lease of the location is one of the main expenses, especially in high-traffic areas. There are also construction or remodeling costs, in addition to the purchase of equipment, signage, and furniture.

Another significant expense is the franchise fee, which grants the right to operate under the KFC brand. According to Franchise Direct, for non-traditional locations, the fee is $22,500. In traditional ones, the amount is $45,000, divided into a $20,000 deposit and a $25,000 option fee.

Financial Requirements for Franchisees

In addition to the initial investment, KFC requires franchisees to have at least $750,000 in liquid assets. This money must be available to cover unforeseen expenses and operational costs until the business becomes profitable.

The liquid assets must be convertible to cash within 10 business days. This requirement aims to ensure that the franchisee can sustain the business without relying solely on initial revenues.

Other Costs to Consider

The launch of a KFC requires an investment in opening advertising to attract customers from day one. Expenses such as initial inventory, business insurance, and staff training must also be covered.

The total cost depends on the location, the size of the establishment, and the necessary adjustments before opening. An establishment in a high-traffic area may require more investment due to high land prices and necessary modifications.

Opening a KFC in the United States involves a significant investment, but it also offers the support of an established brand. For entrepreneurs with sufficient capital, this franchise represents an opportunity within the fast-food sector.