KFC(Kentucky Fried Chicken) is one of the most popular fast food chains in the world. It began operations in 1939 and has been franchising its outlets worldwide since 1952. The headquarters of KFC is located in Louisville, Kentucky.
KFC is known for its chicken, burgers, and a variety of sides. KFC has become a go-to place for chicken lovers in India. It has a net profit margin of 10–15%.
KFC Restaurant Franchise
If you are looking to invest in the food and beverage industry, the KFC franchise can be a good opportunity for you. In India, KFC has 340 open restaurants in the top 100 cities and approximately 21,445 outlets all over the world.
Getting on the list of the KFC franchise is difficult, as on the original KFC website, there is unclear information about this. Here is a Reddit post mentioning this.
To get a franchise, there are channel partners like Devyani International Foods and Sapphire Foods India Limited, which only respond with strong referrals.
This creates a gap for scammers to dupe people and naming themselves as “consultants” and “fraud websites” to dupe the general public. Check this out on their official website.
But worry not, with the right and complete research, we’ve compiled all the information for you to make an informed decision.
Eligibility Criteria for KFC Franchise
1. Experience: To open a KFC restaurant, you need a few years of experience in the hotel industry.
2. Investment: The approximate initial investment required will be around ₹96 Lakhs - ₹2 Crore
3. Connections: To apply for a franchise, you need to reach out to them via channel partners. The best option would be to reach out to an existing franchise owner. So, you need to have strong connections with them.
Here are a few other things you need to know before you decide to apply for the KFC restaurant franchise.
Types of KFC Franchises based on Location
Traditional Franchise
Traditional restaurants are what you expect, standard KFC restaurants that offer full menus and seating.
Non-Traditional Franchise
Non-traditional franchising is also called express outlets. These will be smaller than traditional KFC restaurants, but will run a limited menu.
They operate in “captive” locations, like transport terminals, colleges, venues in business locations and malls.
Types of KFC Franchises based on Operations
Sub-Franchising Model
Master Franchise: A Master Franchise holds the rights to make a sub-franchise of KFC restaurants within a large area. This Master franchise will be responsible for holding the recruitment, training and support.
Sub-Franchise: This operates as one or more KFC outlets within an assigned territory. They need to pay fees and royalties to both the master franchisee and KFC India.
Direct Franchisor Model
KFC India directly gives franchise rights to individual franchisees in select areas, often for smaller territories or specific formats.
Key Requirements to Own a KFC Outlet
There are a few basic requirements that you must follow to qualify for the KFC franchise-
Space and Location Criteria
1. A traditional franchise needs a 1000-1500 sq. ft minimum. A concession stand requires 300-500 sq. ft.
2. The location has to be in a high footfall area such as a mall, commercial roadways or a major highway, with good visibility.
3. The neighbouring area should have a minimum population of 100,000 with a high purchasing power.
4. There should be a 2.5 km radius between the other KFC franchises; this is to prevent business overlap.
5. You need an ownership or a long-term lease agreement for the location.
Financial and Operational Readiness
1. The company must show a minimum net worth of ₹5 Crores.
2. Minimum of ₹2 Crores in liquid assets must be ready to invest.
3. If you have previous business experience in the hotel industry, you typically mark successful applicants.
4. Brand standards and customer satisfaction are the top priorities.
5. The business should know how to adapt to changing business conditions, both good and bad.
Here is a financial breakdown of the Initial Investment Estimate of both Traditional and Non-traditional KFC Outlets-
Traditional KFC Outlet Initial Investment Estimate
| Name of Fee | Low (Approximately) | High(Approximately) |
| Background Check Fee (per person) | Included with Business Licence cost | Included with Business Licence cost |
| Deposit Fee | ₹35 Lakh | ₹38 Lakh |
| Option Fee | - | - |
| Training Expenses | Included in initial Investment | Included in initial Investment |
| Permits, Licenses, and Security Deposits | ₹5 lakh | ₹8 lakh |
| Real Property | ₹50 Lakh | ₹1.5 crore |
| Building & Site Costs | - | - |
| Equipment, Signage, and Décor, POS & MERIT | ₹40 Lakh | ₹50 Lakh |
| Start-up Inventory | ₹8 lakh | ₹12 lakh |
| Grand Opening Expense | ₹5 lakh | ₹10 lakh |
| Insurance | Included in initial Investment | Included in initial Investment |
| Miscellaneous Costs | ₹5 lakh | ₹10 Lakh |
| Additional Funds | ₹15 Lakh | ₹25 Lakh |
| ESTIMATED TOTAL | ₹1.64 Crore | ₹2.45 Crore |
Non-Traditional KFC Outlet Initial Investment Estimate
| Name of Fee | Low (Approximately) | High(Approximately) |
| Initial License Fee | ₹35 Lakh | ₹38 Lakh |
| Background Check Fee | Included with Business Licence cost | Included with Business Licence cost |
| Real Property | ₹30 Lakh | ₹70 Lakh |
| Construction and Leasehold Improvements | ₹30 Lakh | ₹70 Lakh |
| Equipment/Signage | ₹20 Lakh | ₹30 Lakh |
| Opening Advertising | ₹5 lakh | ₹10 lakh |
| Opening Inventory | ₹8 lakh | ₹12 lakh |
| Utility Deposits and Business Licenses | ₹5 lakh | ₹8 lakh |
| Training | Included in initial Investment | Included in initial Investment |
| Insurance | Included in initial Investment | Included in initial Investment |
| Miscellaneous Opening Costs | ₹5 lakh | ₹10 lakh |
| Additional Funds (3 months) | ₹10 lakh | ₹20 lakh |
| ESTIMATED TOTAL | ₹2 Crore | ₹4 Crore |
Staffing and Training Expectations
1. A 3-day mandatory training program at KFC's head office has to be completed before the outlet opening.
2. The key operator has to finish a specialised restaurant training.
3. The training program covers product knowledge, margins, and selling skills for all employees.
4. Regular refresher courses, programs, and seminars keep skills sharp.
5. All the learning happens through computer-based training in the Learning Zone program, written materials, hands-on experience, and classroom sessions.
How to Apply for a KFC Franchise in India (Step-by-Step Process)
Step 1: Research and Eligibility Check
- Visit KFC’s official website or Yum! Brands franchise portal
- Review the eligibility criteria mentioned in the previous sections
- Conduct market research in your target location
- Make sure you have adequate financial resources (₹1-2 crores)
- Your desired location should have a population of at least 100,000 with high purchasing capacity
- Start by understanding KFC’s business model. Your proposed location must maintain a minimum 2.5 km radius from existing KFC outlets.
Step 2: Submit online application
Once you are sure of the eligibility, you can move forward with the formal application:
- Go to the KFC India website and find the “Apply” or “Contact Us” section
- Fill out the online form with your personal and business details
- Include specific information about your proposed location, such as:
- Space available (typically 1,000-1,500 sq. ft)
- Location photographs
- Parking space details
- Property ownership information
- Contact details
Your application must demonstrate both financial capability and a suitable location that aligns with KFC’s standards.
Step 3: Evaluation and Interview
KFC gets the full picture after your application:
- They screen your application based on simple eligibility
- KFC representatives will reach out to shortlisted candidates for further discussion
- You’ll have face-to-face interviews to show your business acumen and dedication
- They check your proposed location’s viability
- The team assesses your financial background and market understanding
- KFC looks at whether you match their brand values and operational standards during this phase.
Step 4: Sign franchise agreement
After Selection-
- Work out and finalise the franchise agreement terms
- The agreement runs for 20 years with renewal options
- Look over the terms about royalty structure, territory rights, and branding guidelines
- Complete legal documentation and pay the franchise fee
- Get financing if needed for the remaining investment
- Your rights, responsibilities, and operational guidelines appear clearly in the agreement.
Step 5: Attend the training program
KFC offers detailed training before launch:
- You must attend a three-day training program at KFC’s head office
- Training covers product knowledge, operational procedures, and selling skills
- The core team needs specialised restaurant training
- Extra training comes through:
- Computer-based Learning Zone program
- Written materials
- On-the-job training at other outlets
- Classroom instruction
- This program ensures you know KFC’s operational standards and customer service expectations.
Step 6: Launch your outlet
Bringing your KFC outlet to life happens in the final phase:
- Build the restaurant according to KFC’s specifications
- Find and train staff with KFC’s help
- Set up KFC’s technology and POS systems
- Test operations with a soft launch
- Create and execute your grand opening with KFC’s marketing support
Tips to get a KFC Restaurant Franchise Successfully:
1. Reach out to people on LinkedIn
2. Reach out to other store owners to understand their experiences and mistakes, and also to get a referral from them.
Challenges of Running a KFC Franchise
As lucrative as the KFC franchise business might look, it also comes with a few challenges-
- The KFC franchise's initial investment requires a significant amount of capital, which might limit entry for small investors.
- A lot of working capital will be required to cover operational expenses, utilities, and salaries, especially during the 3-4 months can strain cash flow.
- There is intense competition, as you will have to compete with both global and local brands requires strategic differentiation.
- Consistent training and employee retention are essential to maintain brand standards.
- Regular supply of ingredients and equipment must meet KFC’s strict guidelines.
- Securing prime locations can be costly and highly competitive.
- Acquiring FSSAI licences and adhering to food safety laws is mandatory and time-consuming.
Conclusion
Starting a KFC restaurant franchise in India in 2025 is a profitable venture for investors who want to diversify in the hotel industry. With a well-established brand, strong customer base, and support from Yum! Brands, franchise owners can achieve significant returns on investment.
With strong brand recognition, a proven business model, and robust marketing and operational support, the franchise offers significant advantages for long-term growth. Make sure to do thorough research, assess your financial readiness, and follow the steps outlined in this guide to make your dream of owning a KFC franchise a reality.
