Here's what it costs to open one of the top restaurant franchises in the world
Getty Images/Justin Sullivan
The fried chicken chain ranked fourth among the restaurants in Entrepreneur's list of top global franchises.
But opening a KFC restaurant requires a lot of money at the start.
The company requires operators to have at least $1.5 million in total net worth and $750,000 in liquid assets.
KFC also charges its operators a $45,000 franchise fee, according to Franchise Direct.
Building and equipment costs - which include items like grills and fryers - range between 695,000 and $1.2 million, Franchise Direct reports.
Other fees, such as training expenses and property costs, bring total startup expenses to between $1.3 million and $2.5 million.
Franchisees also have to pay fees every month for royalties and advertising. Together, the fees equal 10% of gross sales, according to the company.
That's similar to what it costs to open a McDonald's restaurant. But McDonald's restaurants generate more than twice the amount of sales per unit compared to KFC restaurants.
McDonald's restaurants on average generate $2.5 million in sales annually, making McDonald's the second-highest-grossing chain in the US by sales per unit behind Chick-fil-A, according to QSR magazine.
By comparison, KFC restaurants on average generate roughly $942,000 in sales annually, QSR reports.
The company doesn't reveal any details about its franchisees' average profits.
If you work at KFC and have a story to share, please email us at retail@businessinsider.com.
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