KFC (Traditional) Franchise Cost (2025)
Complete cost breakdown for KFC (Traditional) franchise: $1053K–$3772K investment, 5% royalty, franchise fee, and ongoing costs. From the official 2025 FDD.
Source: 2025 FDD filed in MN
Total Investment
$1.1M–$3.8M
Franchise Fee
$45K
Refundable (conditions apply)
Royalty
5%
Gross Revenue. Range 4%–5%: new franchisees building or purchasing from KFCLLC pay 5% (5/15 Amendment); Legacy Franchisees building new Outlets pay 4% (Legacy New Development Addendum). Minimum $1,440/month (CPI-adjusted). All royalty payments by electronic funds transfer.
Ad Fund
4.5%
Gross Revenue (National Co-Op). Rate set at 4.5% for January 1, 2023 through December 31, 2028 by National Co-Op vote; reverts to 2% on January 1, 2027 per By-Laws unless changed. Maximum 5% for advertising purposes.
Ongoing Fees
Monthly and annual costs after opening.
| Fee | Amount | Notes |
|---|---|---|
| Royalty | 5% of gross sales | |
| Ad Fund | 4.5% of gross sales |
Revenue Context
Average Revenue
$1.3M
From Item 19 (2025 FDD)
Investment-to-Revenue Ratio
0.8x
Lower is better (min inv ÷ avg rev)
Annual Fee Burden
9.5%
Royalty + ad fund as % of gross sales
At average revenue of $1.3M, you'd pay approximately $67K/year in royalties alone, plus $61K/year in ad fund contributions.
Other Upfront Fees
| Fee | Amount |
|---|---|
| Training Fee | $3K |
| Background Check Fee (per person signing FA or Guaranty) | $3K |
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