To many, starting a business from scratch seems intimidating and scary even. There is no guarantee for success. Developing a product or service to promote and sell seems grueling and intimidating. As a result, many individuals turn to franchise opportunities. Although these require a much higher initial investment, they have already been proven, as most have been in business for many, many years. Their products sell, they provide a network of support and training, and because of the terms of the investment, they promote long-term wealth as well. One such franchise opportunity is KFC.
In 1930, at the start of the Great Depression, Colonel Harland Sanders opened his restaurant in a gas station in Corbin, Kentucky known as Sander’s Court and Café. Aside from his service operator title, he also acted as chief cook and cashier. Eventually, he expanded the restaurant and added on a motel, but when it caught fire, he found himself having to retain a new place for operation. The Original Recipe made its debut in 1940 and just 12 years later the Colonel began franchising this small entity. Pete Harman opened the first KFC (Kentucky Fried Chicken) franchise in Salt Lake City. Although a success today, Colonel Sanders found himself in quite a bind financially, trying to promote his restaurant. Upon receiving the first of his social security checks, he began working harder to find more franchisees and by 1960, 400 KFC’s opened their doors with 190 franchisees. Four years later, KFC numbers expanded to 600 stores in operation. KFC went public in 1966 and by 1971, more than 3,500 franchises were opened. Nineteen seventy-nine marked 6,000 restaurants worldwide. Although, Colonel Sanders died from leukemia in 1980, the success of his restaurants continued. KFC passed from RJ Reynolds Industries, Inc. (now RJR Nabisco, Inc.) to Pepsi Co., Inc. between 1982 and 1986, and then, in 1997, it became known as a quick chain restaurant with Taco Bell and Pizza Hut called Tricon Global Restaurants, Inc. Today, Kentucky Fried Chicken is served in more than 15,000 restaurants in 105 countries and is operated by YUM! Brands (the former Tricon Global Restaurants, Inc.), the world’s largest restaurant chain.
What does it take to get involved with one of these franchises? What initial investment is required? How long does it take before bringing in a profit with one of these franchises? Is this franchise opportunity right for me?
Over the past 20 years, KFC has compiled an estimated financial investment worksheet. They estimate a cost of $1.5 to $2.5 million necessary to open a single restaurant. This includes estimated costs over the span for the first three months. KFC further requires that franchise owners have a net worth of $1 million and $750,000 in liquid assets. YUM! Brands expects franchises owners to expand operations to multiple brands (Taco Bell, Pizza Hut, Long John Silver’s, or A&W) eventually and open multiple franchises. They look further for ambitious individuals who have experience in the food industry or partners who have successfully worked in the food industry. Upon acceptance and purchase of the franchise, YUM! Brands provides franchisee operators with a sound basis of training and continuous lifeline of support and help to see that the operation succeeds. They promote 100% customer satisfaction while instituting open and honest communication between franchisor and franchisee.
Compared to some, Kentucky Fried Chicken may appear to be moderately challenging and a larger initial investment. However, when considering the company history and solid foundation, this is a great investment. Again, this franchise opportunity is looking for individuals looking to work toward life-long wealth and prosperity. If you’re in the market to purchase a franchise, check out KFC and see if you qualify.