franchise fee for MC D & KFC

Posted by timegoesby (806 days ago)

dear members,

can anyone tell me how much is the franchise fee for MC D or KFC ??
especially if we want to open in china, Guangzhou.

what is the process?

appreciate all comments

warmest regards.

thanks

Find what you are after in our Guangzhou A-Z Directory

Posted by Ruth at Clifford (805 days ago)

There are toooooooooooooo many of these already.
I have heard that it is incredibly expensive.

Doughnuts. Trust me. Make doughnuts.

cheers from Ruth, who would be there every week...

Posted by Meiguoren (805 days ago)

But if you ate at Krispy Kreme every week, you wouldn't still look like Julia Roberts!

Posted by Ruth at Clifford (804 days ago)

Yes, I would. I'd just look like a bigger Julia. And I woujld LOVE to get more exercise to make it all worthwhile.

Posted by timegoesby (803 days ago)

@ruth at clifford

I understand u are so favour this food, but i have no idea about the franchise info, it seems complicated after i read in franchise terms n regulations.
i believe KFC will be much easier, my target market will be first to chinese, and 2nd to foreigner. hence chinese love kfc more than the doughnut...

Posted by douglaskoh (802 days ago)

Why don't you ask KFC yourself?

Posted by Ruth at Clifford (800 days ago)

If properly marketed, I believe doughnuts would be a big seller. What if avian flu hits? You will not be able to sell a chicken burger anywhere. You do not need a franchise fee for a doughnut place. Just recipes, a doughnut baker, flour, sugar, chocolate, oil. What a money maker!

cheers from Ruth

Posted by Scutdog1 (796 days ago)

FYI

Eating chicken has about as much to do with Avian flu as eating carrots. But I can see the panic. Avian flu is a problem with those handling live chicken. Maybe dead uncooked chicken, but nothing to do with cooked chicken. But that is not the problem. The problem occurs when there is human/human transmission. Thus unless you plan on no human contact, you will be of the same risk eating cooked chicken as there is in eating cabbages.

Definition of panic: Irrational fear.

Posted by alvineki (795 days ago)

KFC runs on a licensed program; pay the licence fees on approval of location, capital injection etc..

Mac does cost/profit sharing; eg. 50-50 on set up & profits on top of one time payment. In Australia & NZ, one time payment avg A200,000.

And YES! I too crave for donuts but no guts to venture into this in China ;)

Posted by Ruth at Clifford (784 days ago)

I KNOW that avian flu has nothing to do with eating chicken. But you try telling the average person that. They won't believe you.

cheers from Ruth

Posted by sam50496 (783 days ago)

i heard that the capital for joining Mac is droped to 2.5 million RMB from 8 million RMB before.

Posted by sver (782 days ago)

i read somewhere (i am pretty sure it's reliable) that KFC no longer issue any new license to major cities (BJ,GZ, SHai, etc) They are now targeting 2nd and 3rd tier cities mostly inland. As far as fees are concern, it was Rmb 8 million and now they are reducing it to Rmb 2 million in the inland

Posted by Ruth at Clifford (781 days ago)

I remember when the first KFC opened in Kunming in 2000. Huge line ups!
There wasn't even a McDs there yet, only Dicos

cheers from Ruth

Posted by tomacer2 (766 days ago)

now the inland has so many KFC... very small cities... and the business seems to be quite good.

Posted by griffy (747 days ago)

I am sure the up-front license / franchise fee for KFC is RMB5m and for McD is RMB3m, or it could be the other way round. Obviously, process entails location approval, design and planning approval, etc. Profit / Sales sharing is the standard form of annual payment to the brand owners (% no clue).

I believe that franchises like these are uniform in terms of sourcing of materials, the menues that they offer, etc., so you cannot actually come up with your own menu that you think is strategically fitting for your specifically targeted market segment(s). Even though I did realise once that McD in Beijing offered a huge and meaty pork burger but during the same period (it was late 2003), GZ did not offer it ( I looked for it everywhere but to no avail). Nonetheless, I believe the standard menu is the same across all outlets in China.

When the first KFC in Chengdu opened (more than 10 years ago?)it recorded the highest opening-day sales for a KFC rest. across the globe. This record still stands today. And you can see how popular they are amongst the Chinese consumers even today. Between McD and KFC, you have to go for KFC franchising. And since they are owned by Yum Brands (please correct me if I am wrong) who also owns the Pizza Hut brand, their clout and management quality are unparalleled. That also explains why their training and services for / to their franchisees are apparently better than the others (this is purely hear-say I have to say). Avian Flu in GZ does not cause a stir. KFCs are packed as ever. During SARS, GZ's restaurants, on the whole, were the only ones that did not get affected badly. Guangzhou people live to eat and nothing stops them (and please remember the origin of SARS was from the GD province).

Having said all that, however, I agree with Ruth that Doughnuts can be a hit in China. And I heard sometimes ago that krispy Creme are looking for franchising opportunities in the region. There are many other brands too right, doughnut house, etc.? Or have I gotten too carried away here now?

A kripsy Creme outlet in the vicinity of Citic Plaza ,etc., can definitely do well. I bet all you westerners miss a good cup of coffe and a cinnamon apple doughnut on the go since your move to China, right?

Dought place and a sandwhich deli can also consider? e.g. Pret a Manger from the UK? The head of Pret used to be the regional MD for Pizza Hut and was based in GZ for several years, so he has first hand experience with fast-food restauranting in China and may be glad to hear from you. And they have already set up shops in Japan so I guess China won't be too far away from their strategic vision.

Is a matter of whether or not you want to be the market follower, or leader / innovator.

Good luck with any ventures!

Posted by MartinG (384 days ago)

Burger King is available for Guangzhou .. they have completed their requirements for China and can now open in other cities.