At present, KFC's joining is limited to the transfer of existing stores, rather than opening new stores in its own stores/locations. This is a popular practice 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 operating 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 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)

■ Investment budget table

Transfer fee is 8 million (at least 70%)

Royalty is paid at 6% of total monthly sales.

The advertising fee shall not be less than 5% of the total sales every year.

10% to 12% labor turnover.

The purchase amount is confidential.

Confidentiality of turnover