KFC has grown well past its Bluegrass State roots into an international juggernaut with over 28,000 outlets in operation. While popular in the United States, about 85% of the chicken franchise’s locations are located outside the United States.
Kinds of KFC Franchise Types
KFC franchises fall under two categories: non-traditional and traditional. Non-traditional KFC outlets are smaller than traditional outlets and offer a limited menu. Express outlets primarily operate at locations defined as “captive” in nature, including venues such as military bases, transportation terminals, colleges and universities, venues within business and industry locations, malls, high foot traffic locations, amusement parks, athletic stadiums and similar sites. Traditional KFC outlets encompass all other KFC locations, offer a full menu, and are primarily freestanding.
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How Much Does a KFC Franchise Cost?
To qualify to own a KFC outlet, applicants must satisfy a range of assessment factors, including the financial qualifications.
The estimated financial range for setting up and operating a KFC in the United States for the first three months ranges between $302,825 and $3,771,550, depending on location type.
Based off of its years of experience, KFC estimates the estimated initial investment range for both types. The data in the charts below comes from their respective 2025 Franchise Disclosure Documents (FDDs). Costs are for newly-constructed outlets.
Non-Traditional KFC Outlet Initial Investment Estimate
| Name of Fee | Low | High |
| Initial License Fee | $22,500 | $22,500 |
| Background Check Fee | $575 | $2,500 |
| Real Property | $50,000 | $75,000 |
| Construction and Leasehold Improvements | $75,000 | $900,000 |
| Equipment/Signage | $100,000 | $356,000 |
| Opening Advertising | $5,000 | $5,000 |
| Opening Inventory | $5,000 | $5,000 |
| Utility Deposits and Business Licenses | $7,500 | $10,000 |
| Training | $5,000 | $8,000 |
| Insurance | $7,250 | $10,000 |
| Miscellaneous Opening Costs | $5,000 | $10,000 |
| Additional Funds (3 months) | $20,000 | $30,000 |
| ESTIMATED TOTAL | $302,825 | $1,434,000 |
Traditional KFC Outlet Initial Investment Estimate
| Name of Fee | Low | High |
| Background Check Fee (per person) | $575 | $2,500 |
| Deposit Fee | $20,000 | $20,000 |
| Option Fee | $25,000 | $25,000 |
| Training Expenses | $5,000 | $8,000 |
| Permits, Licenses, and Security Deposits | $50,000 | $100,000 |
| Real Property | $300,000 | $1,100,000 |
| Building & Site Costs | $1,000,000 | $1,900,000 |
| Equipment, Signage, and Décor, POS & MERIT | $375,000 | $606,000 |
| Start-up Inventory | $10,000 | $10,000 |
| Grand Opening Expense | $5,000 | $5,000 |
| Insurance | $7,250 | $10,050 |
| Miscellaneous Costs | $5,000 | $10,000 |
| Additional Funds | $50,000 | $75,000 |
| ESTIMATED TOTAL | $1,852,825 | $3,771,550 |
Like any similar business, KFC opening costs include acquiring real estate, renovation and/or construction costs, equipment, signage, professional fees (which can include license, accounting and lawyer fees), and more. Variations in initial investment depends on area real estate costs, the size of outlet being opened, the construction that needs to be done, and additional factors such as the amount of traffic the restaurant gets in its opening months. However, the defining fee for buying a franchise is the franchise fee.
How Much is the KFC Franchise Fee?
The franchise fee for KFC is dependent on which type of franchise the franchisee decides to open. In the case of non-traditional KFC outlets, the franchise fee (referred to by the franchisor as the initial license fee) is dependent on term length. For non-traditional KFC outlets, KFC charges an initial license fee of $22,500. For traditional KFC franchise agreements, the franchise (or initial license) fee is $45,000 split into the deposit fee and the option fee.
The franchise fee is basically a cover charge for entry into a franchise system, and for taking advantage of the expertise the franchisor has acquired. It typically covers the right to use the franchisor’s system (including trademarks and operating system), and services the franchisor provides to franchisees like help finding a location, training materials, etc.
Additional Monetary Requirements to Open a KFC Franchise
In addition to the opening costs, KFC also has a net worth requirement of $1.5 milllion and a liquid cash requirement of at least $750,000 (may be higher depending upon the ownership level of the franchisee applicant).
The liquid cash requirement is the amount of money a franchisor suggests a franchisee have in savings and able to access quickly in case of emergencies and setbacks when opening the business, including regular living expenses until the franchise unit begins turning a profit large enough for the franchisee to garner an adequate take-home wage. In the case of KFC, liquid assets must be able to be converted to cash within 10 business days.
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For more details on the costs of a KFC franchise, please see our KFC FDD page. For other chicken franchise opportunities, please click here.