Business KFC Franchise
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Introduction
The KFC Franchise When the KFC franchise was founded by Harland Sanders in 1930, it was actually called the Sanders Court and Caf�. However, it was only in 1940 when the Original Recipe chicken was created and the Sanders Court and Caf� became Kentucky Fried Chicken. By 1952, Colonel Harland sanders awarded the first KFC franchise to Pete Harman of Salt Lake City. After paying off his debts in 1955, the Colonel was left virtually broke, so he decided to sell his Secret Recipe to other restaurants. By 1964, KFC had more than 600 franchises, as well as one overseas restaurant in England. In 1986, the company was acquired by PepsiCo Inc. Today, KFC sells around one billion chicken meals every year in over eighty countries and territories. ...read more.
Middle
The amount needed for opening advertising is around $5,000, and the cost for opening inventory is usually $10,000. Then, the cost to obtain utility deposits and business licenses will come to around $7,000. Initial training costs anything from $3,900 to $15,000. Additionally, some miscellaneous opening costs will total at around $5,000-$15,000. Additional funds for 3 months will be between $13,000-$18,000, which brings the grand total to anything from $1,379,000 to $2,391,000. On top of that, the franchise must also give 4% of whatever it makes to the main KFC Corporation as a royalty fee. It's difficult to start a franchise alone. That's why KFC also provides training to its' franchisees. They offer 8-16 weeks of product training, which introduces franchisees to the people they need to know, and exactly what they need to know. ...read more.
Conclusion
All the supplies can be obtained from a central source, which means that there is no hassle in obtaining supplies quickly and efficiently. The franchisee will have fewer difficult decisions to make, because many major decisions are made by the franchisor. Also, banks are more willing to lend to franchisees due to the low risk involved in owning a franchise. However, there are also many disadvantages to owning a franchise. If a franchisee poorly manages one outlet, it could give the entire franchise a bad reputation. Also, franchisors only receive part of the profit, and all the rest of it goes to the franchisee. The franchisee also doesn't have a lot of independence as compared with someone who owns a non-franchising business. Also, the franchisee may not be able to make decisions that suit the local area because the franchisor doesn't allow them, and the license fee needs to be paid to the franchisor, as well as part of what the franchise earns. ...read more.
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