KFC Franchise in India - Cost & ROI, Profit Margin and How to Apply

In the busy streets and vibrant communities of India, the familiar red and white of KFC is a favorite for food lovers and entrepreneurs. With its finger-lickin' good chicken, KFC has won over millions of customers and provides a lucrative business opportunity for those who want to start in the fast-food industry. Owning a KFC franchise in India is as appealing as the tasty food brand that is famous worldwide.

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But what does it take to open a KFC outlet in this lively market? Turning the dream of owning a franchise into reality involves detailed planning, understanding the brand's requirements, and following its mission to serve delicious food that everyone loves. This article provides a complete guide, designed to walk you through every step of the process, from initial costs and investments such as the KFC franchise cost in Chennai, Tamilnadu, and Bangalore to meeting specific requirements for the franchise in various Indian cities. Whether you're an experienced business owner or new to the restaurant scene, understanding how the KFC franchise works is your first step toward success.

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KFC Franchise Cost & ROI

There are  2  types of KFC stores, one is a traditional KFC store which requires an estimated investment of INR 50 L and the other one is non- traditional KFC store which requires an estimated investment of INR 1 Cr. There are  4% – 5% of royalty charges applied to the total sales.

To start a KFC franchise in India, you need a big investment of INR 1 – 2 Cr with a space requirement of 1000 – 1500 sq. ft. is needed.

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KFC franchise profit margin in India

There is a huge fanbase of KFC all over India, so many investors are interested in doing business with the KFC brand. It is one of the profitable businesses and profit margin can vary based on factors such as outlet type, location, size, expenditure, footfall, etc. Initially, the profit margin may be around 20% of total sales but it can increase gradually. Before investing it is important to go through proper research before investing in any franchise outlet. 

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Here's a breakdown of the estimated costs: 

Initial Investment:

Franchise Fee: ₹35-38 Lakhs (Estimated)

Space Requirement: 1,000 – 1,500 sq. ft.

Equipments & Furniture: ₹20-30 Lakhs

Initial Inventory: ₹10-15 Lakhs

Marketing & Advertising: ₹5-10 Lakhs

Licenses & Permits: ₹5-10 Lakhs

Working Capital: ₹10-20 Lakhs

Employee Salaries & Benefits: ₹1 Lakh per month (estimated)

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Steps to Apply for a KFC Franchise 

STEP 1: Go to the official KFC website and click on the Apply section.

STEP 2: Fill your name, contact number, and other required details.

STEP 3: If you meet the eligibility, the KFC executives will contact you and explain the next steps. 

STEP 4: you will need to fill out a franchise form with the necessary details including-

Location photographs

Name of the owner/s of the property

Address of potential of KFC outlet

Parking space details

Investment amount

Contact details of the owner/s

Space available

Documents Required 

Personal Documents (Aadhar and PAN Card)

Passport Size Photographs

Outlet Rental Agreement (it depends)

Brand Agreement

Bank Passbook

GST License

ITR Documents

Other documents if required

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Conclusion

Investing in a KFC franchise is like making friends with success. It is globally one of the leading QSR chains worldwide, known and loved by many brands. It is well-established and has a loyal and reliable fanbase. Putting your money into a KFC franchise is low risk-free and provides unlimited income potential!