The franchise fee of KFC is as low as 2 million. (Reporter Hu Xiaohong) If you pay the franchise fee of 2 million yuan, you may get a KFC store that has already started to operate! This was announced yesterday by China Yum! Brands, a subsidiary of KFC.
however, the preferential treatment is only valid for the stores in the second-and third-tier cities in China, and the first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, joint ventures in Suzhou and Wuxi, and the whole province of Zhejiang cannot enjoy such preferential treatment. The joining fee of these places is still 8 million yuan.
It can be seen that KFC's reduction of the initial fee is an important measure to vigorously advance to the second and third tier cities in China.
KFC adopts the franchise mode of "not starting from scratch" in China, that is, it transfers a mature and operating restaurant to franchisees. Franchisees not only avoid a lot of complicated work such as choosing their own sites, opening stores, recruiting, training and managing employees, but also reduce investment risks. Up to now, there are 37 authorized KFC restaurants in China Mainland, which are "not from scratch".
These second-and third-tier cities promoted by KFC are not only priced at 2 million or 8 million. Franchisees can "bargain" with KFC in the price range of 2 million yuan to 8 million yuan because of the different location, popularity and operating conditions of the store.
McDonald's has previously introduced an initial fee of 2.5 million to 3.2 million yuan, but everything has to start from scratch. KFC, which has an advantage in China market, will undoubtedly put more pressure on McDonald's by lowering the threshold for joining.