KFC: Domestic franchise will not start from scratch with an initial investment of 8 million ■ Transfer of ready-made direct stores ■ Initial investment of 8 million "At present, KFC's franchise business in Chinese mainland only adopts one way-restaurant transfer. That is, choose some suitable KFC restaurants and choose qualified franchisees for resale. Authorized franchisees can buy one or two or three restaurants in the same area at the same time, and they can open new KFC restaurants in the same area in the future. At present, transferable restaurants are basically distributed in small cities with high consumption levels. This is the joining condition offered by He Zhizhong, director of Yum! Brands. Brands China, the parent company of KFC, shouted loudly at the recently concluded "China Franchise Conference". ■ 8 million yuan "not starting from scratch" operation 10 KFC's current joining is limited to the transfer of existing stores, rather than opening new stores in its own stores/locations, which is more popular in the United States, that is, KFC adopts the strategy of "not starting from scratch" in China. He Zhizhong said that the reason is to reduce the risk of investors and cultivate the China market. The transfer fee of each restaurant is more than 8 million yuan. The business area of KFC restaurants ranges from 350 to 400 square meters. This 8 million yuan is the reference price for buying a KFC restaurant according to some comprehensive indicators. The actual transfer fee will depend on the sales and profits of the target restaurant. After paying this fee, the franchisee can take over an operating KFC restaurant, including all the decoration, equipment and facilities of the restaurant, as well as the trained restaurant staff, including the cash flow and profits generated in future operations. But it does not include the cost of real estate leasing. 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 instead of 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 70% in this project. At the beginning of the franchise period, each restaurant must pay a franchise fee of $36,700, which refers to the franchise fee that each authorized new KFC restaurant needs to pay to the licensor, 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 need to pay 6% of the total sales for the franchise right every month, and the annual expenses for advertising by franchisees shall not be less than 5% of the total sales. These rates and fees are established on the current basis and will remain unchanged for 10 years after signing the franchise contract. Like all KFC's international standard franchise agreements, all franchisees do not enjoy exclusive regional rights. He Zhizhong said: "This is a long-term cooperative relationship. The initial term of the franchise agreement is at least 10 years, and future franchisees must voluntarily engage in KFC franchise for more than 10 years, preferably 20 years. "The payback period of investment varies with the distribution area, opening years and business area of the restaurant, and more importantly, it has a very close causal relationship with the business strategy and management level of the 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 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 need to attend a 20-week comprehensive training. This training includes the following contents: how to be a good assistant manager, assistant manager and restaurant manager; How to manage franchised restaurants; Special introduction by headquarters; Small company management course; In the process of training, the expenses of future franchisees are borne by themselves. Franchisees with catering and industry management experience 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 to both parties before you get our franchise opportunity. The capital you have invested is huge and risky. Before we begin, we hope you can seek some independent financial guidance. "(Li Xinli) ■ The transfer fee of the investment budget table is 8 million yuan (at least 70%), and the royalty is 6% of the total monthly sales. The advertising fee shall not be less than 5% of the total sales every year, and the labor turnover shall be 10% to 12%. The purchase amount is confidential and the turnover is confidential. KFC's application procedure is confidential: 1. Log on to our website or call for advice. 2. If you have fully understood the above contents and are willing to cooperate with us, please send your personal information (including education, work experience, financial status and contact information). We will reply within 30 days after receiving the application. 4. After reviewing the application, arrange an interview if the conditions are suitable. 5. The director of the franchise department will interview, and if successful, he will arrange a three-day internship (to enhance mutual understanding. 6. Interview with members of the joining committee (***6 people) composed of the president and vice president of the company. The interview will be arranged in Shanghai for 2 days. After the interview, it is determined that it is a qualified candidate to join. 7. Joining candidates need to be trained in the restaurant for 12 weeks and pass the examination. 8. Franchise candidates choose their own restaurants within the range of restaurants provided by Yum. And sign a letter of intent. = = = = = = = = = = = = = = = = = = = = = = At present, KFC's joining mode is the transfer of mature restaurants, that is, the transfer of an already operating KFC restaurant, rather than the franchisee's own site selection and decoration. KFC requires franchisees to have a transfer fee of 8 million yuan for mature restaurants, including restaurant equipment, decoration, profits and personnel. , but excluding the real estate rental fee of the restaurant, it shall be paid in one lump sum before the transfer of the restaurant. The general franchise agreement has a term of ten years. As for the location of the restaurant, KFC will consider it according to the development of the whole China market. Therefore, after obtaining the approval of the Committee, franchisees can only choose restaurants in a limited range within the area provided by KFC, which means that no one can choose at will. For the requirements of the applicant, the application shall be made by one person alone or jointly by the main operator and the partner, and the capital of the main operator must be greater than 30%. Partners also need to accept KFC's understanding and investigation, and get the approval of the joining Committee. For details, please visit the homepage of www.kfc.com.cn KFC or call 02 1-342545 15.