Franchise Opportunities

FAQs

The following questions and answers address common concerns of potential franchisees.

What qualifications does Yum! Restaurants International (YRI) look for in a franchise applicant?

How much does it cost to become a YRI franchisee?
What fees are payable to YRI?

What do I get in return for my investment?
How much money can I make as a YRI franchisee?
How are the franchisees selected?
What training will I receive?

Can owners of other franchises qualify for a YRI franchise?

Does YRI provide financing to franchisees?
Will I be guaranteed a franchise in the market of my choice?
Can I purchase more than one store to begin with?
Can I purchase a store then pay someone to manage it for me?

What qualifications does Yum! Restaurants International (YRI) look for in a franchise applicant?
YRI seeks businesses or individuals who have a belief in the brand combined with an entrepreneurial spirit, proven management track record, a high level of commitment to customer service, commitment to be involved in the business and to the YRI way of doing business, and a vision and enthusiasm for long term growth of their business. Retail and/or fast food experience is preferred.

How much does it cost to become a YRI Franchisee?
The investment required to open/acquire a YRI restaurant varies, depending on the cost of the site, the type of unit, and whether you are constructing a new unit or purchasing a company owned unit. The minimum real equity required starts at around $225,000 and minimum 30% useable equity is required.

What fees are payable to YRI?
An initial fee is payable on every unit opened, currently $51,600 + GST. The franchisee also pays a monthly royalty of 6%, advertising contribution of 6% and purchasing contribution of 0.35%, all of which are based on a percentage of net sales. Additional fees are required in the event of renewal or an approved transfer of the franchise to another franchisee.
In some markets, additional fees may be payable for services performed by YRI.

What do I get in return for my investment?
As a YRI franchisee, you will enjoy the satisfaction and rewards of owning your own business. But you’ll also enjoy the ongoing benefits of an established global organisation with over 40 years KFC experience in Australia. YRI systems and people will support your efforts to grow your business and achieve your goals for profitability.

How much money can I make as a YRI franchisee?
The profitability of an outlet is dependant on many factors, including the quality of the location, competition, sales volume, rent, management, and the type and amount of financing. Profitability is ultimately a matter within the control of each franchisee. It’s your business!

How are the franchisees selected?
The goal of the franchisee selection process is to create long-term franchise relationships that will benefit both the franchisee and YRI. The selection process begins with the sharing of information. The applicant completes a detailed application form and online self assessment profiler, then develops a business plan, and then takes part in a series of interviews. An on-the-job experience gives the applicant a chance to evaluate our operational systems and give YRI a chance to evaluate the applicant’s aptitude for the restaurant environment. Final stages of the selection process include training for the applicant. At any point during the selection process, either party may decide that the process should not continue.

What training will I receive?
Franchise applicants are required to complete an extensive training program as part of the selection process. This will take a minimum of six months. The training includes both in store and class room training sessions. Proficiency must be demonstrated by the trainee at various stages in the training program. YRI provides the Developing CHAMPIONS training curriculum for the training of Managers and Team Members. For new stores the franchisee pays all costs for the Manager and Team Member training during start-up and the ongoing operation of the business.

Can owners of other franchises qualify for a YRI franchise?
Owners of other franchise operations may qualify for a YRI franchise, provided that they are not in a competing food business (for example, restaurants featuring quick service or similar menu items). It is YRI's strong preference the franchises have no other significant business commitments.

Does YRI provide financing to franchisees?
YRI does not provide financing. YRI can provide contact details of franchise financiers. YRI does not endorse or promote any of the listed institutions.

Will I be guaranteed a franchise in the market of my choice?
It can take between 6 and 12 months from the beginning of the selection process until a new franchisee is ready to acquire his or her unit. (The time frame can be shorter depending on training requirements.) YRI cannot guarantee which franchises will be available when a new franchisee successfully completes training and all other approval requirements. So the flexibility to relocate is an asset for franchisee applicants.

Can I purchase more than one store to begin with?
YRI does not allow franchisees to purchase more than one store at a time. To acquire an additional store franchisees must meet strict operating and financial criteria.

Can I purchase a store then pay someone to manage it for me?
YRI is looking for hands on owner operators to join KFC. YRI will not approve applicants who believe KFC will be a passive investment because KFC requires a lot of hard work to make it work for you.