KFC Franchise Cost and Profits in 2026

By FDDIQ Research Team | April 2026

Based on 2025 FDD Filing

Quick Summary

$22,500

Franchise Fee

$868,412

Midpoint Investment

14.0%

Total Fees

$873,053

Median Revenue

-1

Net Closed

Cost Breakdown

Fee	Amount
Franchise Fee	$22,500
Total Investment Range	$302,825 - $1.4M
Midpoint Investment	$868,412
Royalty Rate	9.5%
Advertising Fund	4.5%
Total Ongoing Fees	14.0%

Revenue and Profit Analysis

The median KFC franchise generates $873,053 in annual revenue. With estimated margins of 20%, that is approximately $174,610 in annual EBITDA.

Revenue per dollar invested: 1.01x.

Unit Count

KFC has 30 franchised units. Lost 1 net units (-3.3% decline).

SBA Loan Performance

SBA default rate: 0.0% across 46 loans. This is below the franchise industry average (~7-8%).

Key Risk Factors

Declining unit count (1 net closures)

Frequently Asked Questions

How much does a KFC franchise cost?

A KFC franchise requires a $22,500 franchise fee with total investment ranging from $302,825 to $1.4M. The midpoint investment is approximately $868,412.

How much do KFC franchise owners make?

Based on the most recent FDD, the median KFC location generates $873,053 in annual revenue. With estimated industry margins of 20%, that translates to approximately $174,610 in EBITDA before debt service.

What is the KFC royalty rate?

KFC charges a 10% royalty on gross sales plus a 4.5% advertising fund, for a total ongoing fee burden of 14.0%.

Is a KFC franchise worth it?

Whether KFC is worth it depends on your market, experience, and financial goals. Key concerns include declining unit count (1 net closures). The brand has been contracting with 1 net closures. The SBA loan default rate is 0.0%. Review the latest FDD thoroughly and validate with existing franchisees before investing.

What is the KFC franchise SBA loan default rate?

Based on SBA loan data, KFC has a 0.0% default rate across 46 loans. This is below the overall franchise industry average.

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Detailed financial data, Item 20 outlet counts, litigation history, and more.

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