KFC Franchise Agreement PDF India: Everything You Need to Know
KFC, also known as Kentucky Fried Chicken, is a popular fast-food chain that has been serving delicious fried chicken to customers for more than 70 years. The brand has a global presence, with franchises in more than 140 countries, including India. If you`re interested in starting a KFC franchise in India, here`s everything you need to know about the franchise agreement.
What is a Franchise Agreement?
Before we dive into the specifics of the KFC franchise agreement in India, let`s first understand what a franchise agreement is. A franchise agreement is a legal document that outlines the terms and conditions of the relationship between a franchisor (the company that owns the brand) and a franchisee (the individual or entity that wants to own and operate a franchise). This agreement typically covers areas such as franchise fees, royalties, marketing, training, and more.
KFC Franchise in India
KFC has been present in India since 1995 and has since grown to have more than 400 outlets across the country. If you`re interested in starting a KFC franchise in India, here are some key requirements:
1. Financial Requirements: To be eligible for a KFC franchise in India, you need to have a net worth of at least INR 5 crore (50 million) and liquid assets of INR 2.5 crore (25 million).
2. Location: KFC requires its franchises to be located in high-traffic areas with good visibility and accessibility. The company also has strict guidelines for store size and design.
3. Experience: While prior experience in the food industry is not mandatory, it can be an advantage. KFC also looks for franchisees who are committed and passionate about the brand.
KFC Franchise Agreement in India: Key Points
The KFC franchise agreement in India is a lengthy document that covers several aspects of the franchise. Here are some key points to keep in mind:
1. Term: The initial term of the franchise agreement is typically 20 years, with an option to renew for an additional 10 years.
2. Franchise Fees: The franchise fee for a KFC franchise in India is currently INR 30 lakh (3 million). This fee covers the cost of the initial training, site selection, and other support services provided by KFC.
3. Royalties: KFC charges a royalty fee of 5% of your monthly gross sales. This fee covers ongoing support, marketing, and other services provided by the franchisor.
4. Marketing: As a KFC franchisee, you are required to contribute 5% of your monthly gross sales towards local marketing efforts. KFC also has strict guidelines for national marketing campaigns.
5. Training: KFC provides extensive training and support to its franchisees, including a 4-month training program for the restaurant manager and a 6-month training program for the operations manager.
The KFC franchise agreement in India is a comprehensive document that covers all aspects of the franchise relationship. Before signing the agreement, it`s important to carefully review and understand all the terms and conditions, as well as your rights and obligations as a franchisee. With the right preparation and commitment, a KFC franchise in India can be a profitable and rewarding business opportunity.