8 million yuan "not starting from scratch" for p>811

KFC's current joining is limited to the transfer of existing stores, instead of opening new stores in its own stores/locations, which is popular in the United States, that is, KFC adopts the strategy of "not starting from scratch" in China. He Zhizhong said that the reason lies in reducing the risk of investors and cultivating the China market.

the transfer fee for each restaurant is more than 8 million yuan. The business area of KFC restaurants ranges from 351 to 411 square meters. This 8 million yuan is the reference price for buying a KFC restaurant based on some comprehensive indexes. The actual transfer fee will depend on the sales and profit of the target restaurant. After paying this fee, the franchisee can take over an operating KFC restaurant, including all the decorations, equipment and facilities in the restaurant, and the trained restaurant staff, including the cash flow and profits generated in the future operation. But it does not include the cost of real estate rental.

franchisees can also arrange financing of 8 million yuan by themselves. KFC can accept a joint venture, which requires the applicant to invite a number of like-minded people to raise funds, rather than a joint venture with KFC, but the franchisee must be a restaurant operator and account for a considerable proportion of the investment funds. According to the survey, successful candidates need to invest more than 71% in this project.

at the beginning of a franchise period, each restaurant must pay the initial fee of $36,711 for franchise operation, which refers to the initial fee to be paid to the licensor for each new KFC restaurant authorized, but for the transferred restaurant, this fee can be included in the transfer fee after negotiation between both parties. Compared with the down payment, franchisees should pay 6% of the total sales monthly for the right to use franchise, and the annual expenses for advertising by franchisees should not be less than 5% of the total sales. These rates and fees are formulated on the current basis and will remain unchanged for 11 years after the signing of the franchise contract. Like all KFC's international standard franchise agreements, all franchisees do not enjoy regional exclusive rights.

He Zhizhong said, "This is a long-term cooperative relationship. The initial term of the franchise agreement is at least 11 years, and future franchisees must voluntarily engage in KFC franchise for more than 11 years, preferably 21 years. " The payback period of investment varies with the distribution area, opening period and business area of restaurants, and more importantly, it has a very close causal relationship with the business strategy and management level of franchisees.

■ Training is the key to success

As the saying goes, interlacing is like a mountain. In order to ensure that franchisees can fully understand KFC's business philosophy and purpose, and continue to develop based on this management principle, KFC requires franchisees to have experience in related industries, which is also an important link to reduce the risk of joining and obtain a win-win situation. He Zhizhong said that successful candidates were required to attend a comprehensive 21-week training.

this training includes the following contents: how to be a restaurant assistant manager, assistant manager and restaurant manager; How to manage the franchise restaurant; Special introduction to the headquarters; Small company management course; In the process of training, future franchisees will bear their own expenses. Franchisees with experience in restaurant and industry management can apply for exemption from certain training.

He Zhizhong emphasized: "Joining KFC is a great investment for both sides. It is very important for you to know that this is a great commitment for both parties before you get our franchise opportunity. The capital you have invested is substantial and risky. Before we begin, we hope you can seek some independent financial guidance. " (Li Xinli)

■ Investment budget table

Transfer fee is 8 million yuan (at least 71%)

Franchise franchise fee is 6% of total sales every month

Advertising fee is not less than 5% of total sales every year

Labor fee is 11% to 12% of turnover

Purchase amount is confidential

Turnover is confidential.