2026 FDD Issued Mar 25, 2026 Minnesota Commerce (CARDS) Checked Oct 9, 2026
KFC Franchise Cost (2026)
A KFC franchise costs an estimated $2,107,575 – $4,155,000 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $45,000 initial franchise fee (Item 5) and covers this format: New Build. Item 6 lists royalty: 4% – 5.25% of Gross Revenue, subject to the conditions below.
- Total investment
- $2.11M – $4.16MItem 7 source and qualifications
- Franchise fee
- $45KItem 5 source and terms
- Royalty
- 4% – 5.25% of Gross RevenueItem 6 conditions and fee bases apply
- Brand fund
- 5.8% of Gross RevenueItem 6 conditions and fee bases apply
- Units (2025)
- 3,490Item 20 source and scope
- Franchise exit rate
- 4.5% / yrCalculated 3-year average; definition and source
What stands out about KFC
The national cooperative rate follows a temporary Comeback schedule rather than a permanent marketing percentage. Item 6 lists the later national rates, while Item 11 ties local spending to the national contribution. Legacy status and a seller's Brand Contribution Option Amendment also change the royalty obligation. The Digital Fee reaches only digital orders. Those conditions prevent treating the displayed percentages as a single all-sales charge.
Ground-up construction and site purchase distinguish Item 7's main budget from its remodel, reopen or conversion estimate. Real Property assumes buying the site; financing charges and debt service are excluded. A Development Agreement pays for committed outlets' rights in place of their initial franchise fees, not on top of them. The development-rights estimate does not fund the restaurants' buildings, equipment or ongoing operations.
Actual sales extremes in Item 19 come from a selected group of single-brand drive-thru outlets with specified building images and operating history. The group mixes franchised and company-owned restaurants and excludes closed locations. It is neither a franchised-only average nor a typical owner-income measure. Kalibrate's location Forecast Tool estimates sales demand without deducting food, labor or other operating expenses.
What are the initial franchise fees and financial requirements for KFC?
Item 5 lists an initial franchise fee of $45,000 for KFC. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 charges $45,000 in two parts: a $20,000 Deposit Fee at the Deposit Agreement and a $25,000 Option Fee at the Option Agreement. If KFC rejects the site and terminates the deposit agreement, the deposit may be refunded less an applicable $6,000 Impact Study Fee, subject to a signed general release. If a bona fide zoning or building restriction beyond the applicant's control ends the option, $22,500 may be refunded with a release. Otherwise these fees are nonrefundable. Initial restaurant training at a company-owned outlet costs $3,000 per person; third-party training costs vary. Background checks are $575-$2,500 for each Franchise Agreement or Guaranty signer, collected for the vendor when consent is submitted and nonrefundable. Item 7 Note 1 limits the background-check obligation to new franchisees or new partners/owners and warns that non-U.S. citizens may pay more, with some paying $3,700. For a Development Agreement, Item 5 and Item 7 state an estimated $135,000-$540,000 development fee for 3-12 committed outlets, paid in lieu of their initial franchise fees, not in addition to them. Fees for additional outlets beyond the commitment remain due. PDF pp. 16-17, 22 and 24.
Source: KFC 2026 FDD, Item 5, PDF p. 16.
This record lists no minimum net worth or liquid-capital requirement for KFC, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a KFC franchise? (Item 7)
Source: KFC 2026 FDD, Item 7, PDF p. 23.
Item 7 of KFC’s 2026 Franchise Disclosure Document estimates the total cost to open one new build at $2,107,575 – $4,155,000. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Background Check Fee | $575 | $2,500 |
| Deposit Fee | $20,000 | $20,000 |
| Option Fee | $25,000 | $25,000 |
| Training Expenses | $5,000 | $8,000 |
| Permits, Licenses & Security Deposits | $50,000 | $100,000 |
| Real Property | $300,000 | $1,200,000 |
| Building & Site Costs | $1,200,000 | $2,000,000 |
| Equipment, Signage, Décor, POS & Required Technology | $425,000 | $650,000 |
| Start-up Inventory | $14,000 | $14,000 |
| Grand Opening Expense | $2,500 | $10,000 |
| Insurance | $8,000 | $13,000 |
| Miscellaneous Costs | $7,500 | $12,500 |
| Additional Funds - 3 months | $50,000 | $100,000 |
| Total | $2,107,575 | $4,155,000 |
Other formats
| Format | Total investment |
|---|---|
| Remodel / Reopen / Convert | $1,207,575 – $2,805,000 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
The main table is for a ground-up new outlet; the alternative total is for remodeling/reopening a closed outlet or converting another restaurant. Real Property assumes a purchased site, not a rent-only budget; site purchase/lease costs can exceed the range in some localities. Construction estimates assume a build-ready site and need location-specific adjustment. The $575-$2,500 background check is per person, only for new franchisees/new partners or owners; some non-U.S. citizens paid $3,700. Training Expenses include estimated food, lodging and travel, with $3,000 initial company-outlet training per person or variable third-party costs. Equipment includes initial One System Fund enrollment; it does not remove the recurring monthly fee. Insurance is an annual premium. Additional Funds cover 3 months of payroll, utilities, royalties, advertising, supplies and other ongoing costs not covered by sales; this is KFC's estimate, not guaranteed cash sufficiency. Finance charges, interest and debt service are excluded. The separate Development Agreement estimate of $135,000-$540,000 covers 3-12 committed outlets' development rights, not their construction or operation; its fees replace initial franchise fees for those outlets and must not be added to them a second time. PDF pp. 22-26.
What ongoing royalties and fees does KFC charge? (Item 6)
Source: KFC 2026 FDD, Item 6, PDF p. 17.
Item 6 of KFC’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Development Fee (Development Agreement) | Varies | When it applies | The then-current initial franchise fee, currently $45,000, multiplied by new outlets committed for the development year. The first installment is due when the Development Agreement is signed; later installments are due September 30 of the preceding year. The number of installments follows the development years, typically 3. The stated $135,000-$540,000 estimate assumes 3-12 outlets and the current fee. Fully earned when paid and nonrefundable. Item 7 Note 1 on PDF p. 22 says this replaces the initial franchise fee for committed outlets; it is not a second fee added to each outlet's startup table. Extra outlets beyond the commitment pay the then-current initial franchise fee. (Item 6, PDF p. 17) |
| Royalty | 4% – 5.25% of Gross Revenue | Every period | The greater of the applicable 4%-5.25% of Gross Revenue or $1,440 per month, paid by the 20th of the next month through electronic funds transfer. The monthly minimum may rise with each 10% Consumer Price Index increase from the June 1976 base, but not above the minimum charged for new KFC franchises. Item 6 Note 2 states 4% for new Legacy and 5% for new non-Legacy outlets; an acquired outlet's seller rate transfers subject to Legacy and Brand Contribution Option Amendment status. Legacy status is defined in Item 1, not granted to every new buyer. Item 1 and the Legacy Addendum qualify the 4% new-outlet rate: a Legacy franchisee who signed a Brand Contribution Option Amendment instead pays 5%. The seller's permanent 0.25 percentage-point increase from that amendment follows an acquired outlet. Gross Revenue includes outlet, catering and special-event sales; it excludes collected/remitted sales-based taxes and coupons producing no revenue. Refunds, credits and uncollectible receivables are deducted only to the extent previously included in revenue on which royalties were paid. PDF pp. 13, 21 and 131. (Item 6, PDF p. 17) |
| National Co-Op | 5.8% of Gross Revenue | Every period | The 5.8% national advertising contribution applies during the Comeback Period, October 1, 2025-March 31, 2027, defined in Item 1 on PDF p. 13. Item 6 Note 4 then lists 4.5% through December 31, 2028 and reversion to 2% on January 1, 2029, unless changed under National Co-Op approvals/bylaws. After the Comeback Period, advertising requirements above 5% require the stated approval. Payments are monthly by the 20th of the next month through electronic funds transfer; national/local co-ops may charge additional late fees. Item 11 on PDF pp. 38-39 states no local contribution is currently required, but local spending reverts to 0.5% after the Comeback Period, adjusted so national plus local equals 5% when the national rate is below 5%. Approved local co-op contributions count toward local spending; KFC can require membership. An unmet local-spending amount is payable to the National Co-Op within 60 days after fiscal year-end unless KFC accepts that it could not productively be spent. These are conditional, dated terms from the FDD, not a permanent 5.8% all-in marketing rate. (Item 6, PDF p. 17) |
| Renewal | $9,600 | When it applies | If applicable, as incurred, and only one of the renewal conditions. The $9,600 includes the current adjustment for Consumer Price Index increases of 10% from June 1976 and is subject to later adjustment. Renewal also requires compliance, current monetary obligations and the applicable agreement/addendum. PDF pp. 17, 21 and 45. (Item 6, PDF p. 17) |
| Transfer to Existing KFCLLC Franchisee | Varies | When it applies | $4,800 for the first outlet and $2,400 for each additional outlet in the same transaction, payable on signing the Transfer Agreement. These amounts already reflect current Consumer Price Index adjustment and may be adjusted later. PDF pp. 17-18 and 21. (Item 6, PDF p. 17) |
| Transfer to New KFCLLC Franchisee | Varies | When it applies | $9,600 for the first outlet and $4,800 for each additional outlet in the same transaction, payable on signing the Transfer Agreement. These amounts already reflect current Consumer Price Index adjustment and may be adjusted later. PDF pp. 18 and 21. (Item 6, PDF p. 18) |
| Audit | Varies | When it applies | Entire audit cost, including auditing personnel expenses, only if the audit reveals a deficiency of at least 2% of royalties actually paid. Due immediately when the amount is determined, not an annual audit subscription. (Item 6, PDF p. 18) |
| Additional/Refresh Training | $500 per week | When it applies | $500 per person per week if KFC determines additional training is needed and it is completed at a company-owned outlet. May rise, not above $5,000 per person per week. This is conditional refresher training, separate from Item 5's initial training fee; it is not charged every week to every outlet. (Item 6, PDF p. 18) |
| Administrative Services | $500 | When it applies | $500 per transaction when KFC processes a corporate-structure change or another approved modification, due when the change is requested. May change, not above $5,000. Not a periodic fee. (Item 6, PDF p. 18) |
| Costs, Expenses and Attorneys' Fees | Varies | When it applies | Applicable prevailing-party litigation costs under the agreement. (Item 6, PDF p. 18) |
| Indemnification | Varies | When it applies | Covered outlet/development-operation claims and liabilities. (Item 6, PDF p. 18) |
| Late Royalty Payments | Varies | When it applies | 1.5% per month on late royalty amounts. (Item 6, PDF p. 18) |
| ROCC Re-evaluation | $224.97 | When it applies | $224.97 per re-evaluation, paid directly to the vendor if a Food Safety Compliance Check or Operations Standards Compliance Check fails. KFC pays for the regular combined Restaurant Operations Compliance Check 4 times per year; a failed check requires both types of re-evaluation at the franchisee's expense. Vendor fees can change. Item 6 Note 6 adds $7 food cost per re-evaluation for the KFC portion of an acquired KFC/Taco Bell co-brand outlet. PDF pp. 18-19 and 22. (Item 6, PDF p. 18) |
| Technology Fees | $297.39 per month | Every period | $297.39 per outlet per month for ongoing required technology subscription, maintenance, support and related services, excluding hardware purchase and installation. Additional components can require additional fees. Item 6 Note 7 anticipates an increase to as much as $450.63 per outlet per month within the next year as components are implemented; this is a forecast, not the current charge. KFC may change the amount on reasonable notice, not above $3,000 per outlet per month. The National Co-Op technology advisory committee gives nonbinding input. PDF pp. 19 and 22. (Item 6, PDF p. 19) |
| One System Fund Fee | $180 per month | Every period | $180 per outlet per month, plus applicable tax and shipping, for merchandising-display hardware, menu panels and point-of-sale advertising materials supporting national promotions. Collected for a third-party National Co-Op vendor. Changes require National Co-Op committee approval, including franchisee representatives. Item 7's equipment estimate separately includes the initial one-time enrollment fee; this monthly payment does not replace it. PDF pp. 19 and 25. (Item 6, PDF p. 19) |
| Digital Fee | 3.1% of Gross Revenue from Digital Orders | When it applies | 3.1% of Gross Revenue collected from Digital Orders, payable monthly. Digital ordering is optional, but this fee is mandatory if used; recurring:false means it is not owed by every franchisee, not that a participant pays it only once. Orders include KFC.com and third-party digital channels/aggregators, whose availability can change. The rate remains 3.1% through the end of 2026, after which it may change. It is not 3.1% of all outlet sales. PDF pp. 19-20. (Item 6, PDF p. 19) |
| Liquidated Damages (Development Agreement) | Varies | When it applies | If committed new/replacement outlets are not timely opened, the prior fiscal year's average annual Gross Revenue of qualifying New Outlets is multiplied by 5%, 2 years and the difference between committed and actual approved new/replacement openings in that development year. New Outlets means new-build or torn-down/reconstructed restaurants built during the 2 fiscal years before default and operating throughout the immediately preceding fiscal year. This is a contingent damages formula, not a sales royalty on every existing outlet. (Item 6, PDF p. 20) |
| Repayment of Unamortized Brand Contribution | Varies | When it applies | An acquired outlet that carries a seller's Brand Contribution Option Amendment may require repayment of KFC's unamortized contribution if it closes before the amendment's tenth anniversary, unless the seller repays that amount at sale. It is not automatically due on every acquisition. Item 6 Note 8, PDF p. 22. (Item 6, PDF p. 20) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
KFC startup investment and modeled fees over 10 years
KFC's royalty depends on the outlet's Legacy/acquisition/amendment status and an inflation-adjustable monthly minimum. The digital fee applies only to digital-order Gross Revenue, and participation is optional. National/local advertising obligations change under the Comeback schedule; current technology fees can also change. Item 19 supplies actual Net Sales extremes for a selected mixed-ownership sample, not the monthly Gross Revenue, digital sales mix or franchised-only average needed to price these obligations. This page therefore does not combine the listed rates into an all-sales fee estimate. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: KFC franchised outlet history
Source: KFC 2026 FDD, Item 20, PDF p. 59.
Item 20 Table 3 reports 3,404 franchised outlets at the end of 2025. The company-owned table reports a further 86 outlets. Our calculated average annual franchised exit rate is 4.5% across the 3 reported years, using the definition below.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 3,842 | 30 | 157 | 3,715 | 4.1% |
| 2024 | 3,715 | 28 | 185 | 3,558 | 5% |
| 2025 | 3,558 | 9 | 163 | 3,404 | 4.6% |
Franchised units went from 3,842 to 3,404 over 3 years (-438).
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables. Compare KFC’s exit rate with other brands.
30 units changed owners in 2025.
Table 3's national franchised totals are retained, with transfers from Table 2 on PDF p. 54 and company-owned year-end totals from Table 4 on p. 59. These are fiscal-year ends, not calendar December 31: December 25, 2023; December 30, 2024; and December 29, 2025. Company-owned includes affiliate-owned or managed outlets, including KFC Corporation. Franchisor reacquisitions leave the franchised system but are not necessarily restaurant shutdowns; the 2025 table records 7 reacquisitions separately from 155 terminations and 1 ceased-other entry. Item 19's 156 closed franchised outlets is not the same measure as all exits including reacquisitions. Nontraditional outlets operate under a separate disclosure document and are not added to these totals. Projected openings and signed-but-unopened agreements are not counted as operating outlets. PDF pp. 10 and 52-60.
How much do KFC franchise owners make? (Item 19)
Source: KFC 2026 FDD, Item 19, PDF p. 51.
Item 19 of the 2026 FDD reports lowest Actual Annual Net Sales of $387,000 (Fiscal year ended December 29, 2025, 2,227 single-brand drive-thru outlets (2,167 franchisee-owned, 60 company-owned), built/remodeled in American Showman or Next Gen image and open for at least 1 year at fiscal year-end). KFC’s Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees such as the royalty (4% – 5.25% of Gross Revenue) come out of sales before an owner is paid, so these figures cannot show what an owner earns.
See every KFC Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How long is the KFC franchise agreement term?
Source: KFC 2026 FDD, Item 17, PDF p. 45.
The standard KFC franchise agreement runs 20 years, with renewal terms of 10 years.
Item 17 lists a 20-year franchise term with renewal subject to a fee, current monetary obligations and no repeated breaches in the preceding 24 months; a new contract may materially change terms. Item 1 and the required 5/15 Amendment for non-Legacy franchisees grant one conditional 10-year renewal, not unlimited renewals. Renewal requires curing defaults and renovation/modernization or approved relocation, and uses the then-current form if the term extends beyond December 31, 2050. The base Franchise Agreement instead describes successive conditional 10-year renewals; Legacy and other applicable addenda modify those terms. The franchise term is distinct from the site-development option. PDF pp. 13, 45, 71-72 and 126-130.
How long does it take to open a KFC franchise? (Item 11)
Source: KFC 2026 FDD, Item 11, PDF p. 37.
Item 11 of the 2026 FDD states the time from signing the Franchise Agreement and the Option Agreement to opening: approximately 6 to 24 months.
Compare KFC with other franchises
Head-to-head FDD cost, fee, and earnings comparisons:
Franchises with a similar investment range
These published records are selected by proximity to KFC’s $2,107,575 low-end Item 7 investment, starting with Restaurants & Food. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
Compare other restaurants & food franchises
Frequently Asked Questions about KFC
- How much does a KFC franchise cost?
- Item 7 estimates $2,107,575 – $4,155,000 for a ground-up new build, including the $45,000 initial franchise fee and a purchased-site allowance. It excludes finance charges, interest and debt service. Remodeling, reopening or conversion has a separate printed total; Development Agreement fees replace the initial fees for committed outlets rather than being added twice.
- How much do KFC owners make?
- Item 19 states actual annual Net Sales extremes for selected single-brand drive-thru outlets meeting image and operating-history criteria. The sample mixes franchised and company-owned outlets and excludes closed restaurants. It provides no franchised-only average or median or owner-income figure; the separate location Forecast Tool estimates sales, not profit.
- What is the KFC royalty fee?
- Item 6 lists a royalty of 4% – 5.25% of Gross Revenue, subject to its monthly minimum. National cooperative and digital-order charges have separate terms; see the full fee table.
Sources
KFC US, LLC Franchise Disclosure Document, issued March 25, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 16
- Item 6: cited PDF p. 17
- Item 7: cited PDF p. 23
- Item 19: cited PDF p. 51
- Item 20: cited PDF p. 59
- Agreement term (Item 17): cited PDF p. 45
Page references for KFC use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- October 29, 2026: Record updated.
- October 9, 2026: Source check completed against the recorded FDD.
- October 9, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued March 25, 2026).