Kfc & Mcdonald
KFC The minimum financial requirement to open a KFC in the United States is $1. 5 million net worth and $750,000 in liquid assets. Item 7 of the Franchise Disclosure Document (FDD) outlines the investment costs necessary to enter the KFC system.
Highlights are as follows: |[pic] |[pic] | | |Building Construction Costs |$425,000 to $565,000 | |Equipment, Signage, and Decor |$216,000 to $366,000 | |Site Work |$100,000 to $250,000 | |Miscellaneous Permits, Utility Deposits, |$50,000 to $100,000 | |Licenses, and Architectural Costs | | |Subtotal Construction |$791,000 to $1,281,000 | |Initial Franchise Fee |$45,000 | |Development Services Fee |$0 to $35,000 | |Real Estate |$400,000 to $1,000,000 | |Grand Opening Expense |$5,000 | |Start-up Inventory |$10,000 | |Training Expenses |$3,900 to $10,000 | |Miscellaneous Opening Costs |$5,000 to $10,000 | |Additional Funds |$50,000 to $75,000 | |Total |$1,309,900 to $2,471,000 | In china, it’s about 8 million RMB Down Payment ·The initial franchise fee ·The first 13 weeks of training of the restaurant operation and basic management fee ·The cost of purchases, more than 2 million yuan Ongoing Fees ·Franchise continue to charge:6% of restaurant sales Advertising and promotional costs:Not less than 5% of restaurant sales The purchase fee varied for each restaurant based on the specific circumstances. Franchisees are free to arrange a certain proportion of loans, but the proportion of the franchise fee with own funds cannot be less than 50%. G POWERWHAT’S THE BUZZWHY KFCON BOA Mcdonalds Most Owner/Operators enter the System by purchasing an existing restaurant, either from McDonald’s or from a McDonald’s Owner/Operator. A small number of new operators enter the System by purchasing a new restaurant. The financial requirements vary depending on the method of acquisition. Financial Requirements/Down Payment
An initial down payment is required when you purchase a new restaurant (40% of the total cost) or an existing restaurant (25% of the total cost). The down payment must come from non-borrowed personal resources, which include cash on hand; securities, bonds, and debentures; vested profit sharing (net of taxes); and business or real estate equity, exclusive of your personal residence. Since the total cost varies from restaurant to restaurant, the minimum amount for a down payment will vary. Generally, we require a minimum of $500,000 of non-borrowed personal resources to consider you for a franchise. Individuals with additional funds may be better prepared for additional or multi-restaurant opportunities. Financing
We require that the buyer pay a minimum of 25% cash as a down payment toward the purchase of a restaurant. The remaining balance of the purchase price may be financed for a period of no more than seven years. While McDonald’s does not offer financing, McDonald’s Owner/Operators enjoy the benefits of our established relationships with many national lending institutions. We believe our Owner/Operators enjoy the lowest lending rates in the industry. Ongoing Fees During the term of the franchise, you pay McDonald’s the following fees: • Service fee: a monthly fee based upon the restaurant’s sales performance (currently a service fee of 4. 0% of monthly sales). • Rent: a monthly base rent or percentage rent that is a percentage of monthly sales.
