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KFC (NON-TRADITIONAL)
KFC US, LLC licenses non-traditional KFC outlets that prepare and sell a limited menu of approved chicken items, such as strips and sandwiches, along with other KFCLLC-approved products. These outlets primarily operate in captive, high-foot-traffic venues like military bases, transportation terminals, colleges, malls, amusement parks, and stadiums, using KFC trademarks and proprietary operating systems. The business model involves site approval, licensing fees, and ongoing royalties, targeting licensees interested in placing KFC in non-traditional, controlled environments.
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Franchise Costs
Technology fee anticipated up to $451/mo when components implemented (not to exceed $3,000/mo); insurance approx. $667-$1,083/mo (annual premium $8,000-$13,000 /12). No royalty or ad fund specified in provided text.
Financial Performance
Item 19 Financial Performance
Data Based On: 2,227 single-brand Outlets (2,167 franchisee-owned, 60 company-owned) that have a drive-thru, were built or remodeled in either the American Showman image or the Next Gen image, and were open for at least one year as of KFCLLC's fiscal year ended December 29, 2025 ('FYE 2025').
* The document provides a range for Actual annual Net Sales ($387,000 to $3,379,000) for the Sample Outlets but does not specify an average, median, or quartile figures for revenue. The document explicitly states that the Forecast Tool 'does not take into consideration labor costs, food costs or other operating expenses, which may vary significantly', and no other profit, expense, or margin data is provided. Therefore, no profit figures (gross profit, net income, net profit, EBITDA, or best guess profit range) could be calculated or estimated.
Extracted Item 19 Section
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KFC (NON-TRADITIONAL) Franchise Analysis
Picture KFC chicken sizzling in military bases, college food courts, and stadiums—non-traditional outlets capturing impulse buys in captive crowds. Yet with a recent dip in unit count and elevated terminations, Item 19's revenue disclosures and SBA loan records paint a mixed picture of performance in these controlled environments. Can this high-investment model thrive amid contraction, or does the data signal caution for operators eyeing steady foot traffic?
Item 7 in the 2026 FDD pegs initial investment at $1,207,575 to $4,155,000, reflecting buildouts in premium venues like amusement parks and terminals, with a $45,000 franchise fee. Ongoing costs include anticipated technology fees up to $451 monthly (capped at $3,000) and insurance around $667-$1,083 per month. No explicit royalty or ad fund is detailed here, which stands out versus traditional fast food norms, potentially easing cash flow but shifting burdens to tech and coverage. Item 19 provides earnings data for these outlets, revealing variability tied to venue traffic, while 45 SBA loans average $1,087,087 suggest banks back larger-scale non-trad deals despite the heft.
System metrics flag challenges: total locations shrank 4% from 3,558 in 2024 to 3,404 in 2025, with 155 terminations and just 25 projected new units against 30 transfers. For franchisees, this contraction in a Yum! Brands giant hints at venue saturation or economic pressures on non-trad spots, contrasting explosive growth elsewhere in fast food. High terminations (155) versus modest expansion demand scrutiny of lease dependencies and traffic volatility—key risks when $1M+ is at stake in fixed locations.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How KFC (NON-TRADITIONAL) Compares
Key Insights
- Higher investment than 85% of Fast Food franchises
- #3 largest franchise system in Fast Food
- One of the lowest SBA loan default rates in Fast Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
KFC (NON-TRADITIONAL) Current | $1.2M – $4.2M | $45K | N/A | 3,404 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.5M – $2.5M | $15K | 5.0% | 3,120 |
| CHICK-FIL-A License Program | $586K – $3.4M | N/A | 10.0% | 2,795 |
| JIMMY JOHN'S | $366K – $734K | $35K | 6.0% | 2,737 |
Fast Food Average 131 franchises | $614K – $1.6M | $35K | 6.2% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 131 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2025)
Outlets by state across the United States
+34 more states
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SBA Loan History
Historical SBA 7(a) loan data for KFC (NON-TRADITIONAL) franchisees (2013 – 2024)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
45 SBA loans on record
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Franchisee Contacts
742 franchisee contacts on file from official FDD filings.
742 Contacts Available
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Due Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Frequently Asked Questions
The total initial investment to open a KFC (NON-TRADITIONAL) franchise ranges from $1,207,575 to $4,155,000. This includes a franchise fee of $45,000.
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