welcome

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KFC is excited about your interest in joining the team that provides people around the world with the food that they crave. We hope that this brochure will provide you with an overview of the information you need and will encourage you to become part of our team.

KFC has been serving customers complete, freshly prepared, family meals since Colonel Harland Sanders founded the concept in 1952. As the world’s most popular chicken franchise specializing in Original Recipe®, Kentucky Grilled Chicken™ and The Colonel’s Crispy Strips with home-style sides, Honey BBQ Wings and freshly made chicken sandwiches, KFC research shows that approximately four million people visit a KFC restaurant in the U.S. every day. It is estimated that KFC sells 1.8 billion pieces of chicken each year.

KFC has more than 350 multi-unit franchisees, 150 of which operate more than five restaurants each. We are now actively seeking additional franchisee prospects that want to be multi-unit KFC franchise operators, and will commit to building three units over their first three to five years in the system, or buy restaurants that existing franchisees may be selling.

The next step in the process is to complete a confidential online application. You will receive an email from us with a link to this application, and it should only take you 20 to 30 minutes to complete. If you do not receive an email from us within the next few hours, feel free to call us direct at 502-874-8201.

Thank you for your interest in joining the KFC franchise team!

Sincerely,

Scott Haner, CFEDirector, Franchisee Recruiting

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The KFc Process

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This is a brief overview of the timeline for the KFC franchising process. For more information, please visit www.kfcfranchise.com.

Successfully completing Stage #2 qualifies you as a franchise candidate. Some candidates build stores, other candidates buy existing KFC restaurants.

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The InvesTmenT

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The minimum financial requirement to open a KFC or KFC/Taco Bell in the United States is:

$1.5 million net worth $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:

* Additional information on each of these costs can be found in Item 7 of the FDD.

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Type of Expenditure KFC KT

Building Construction Costs $425,000 to $565,000 $440,000 to $590,000

Equipment, Signage, and Décor $216,000 to $366,000 $377,000 to $427,000

Site Work $100,000 to $250,000 $100,000 to $250,000

Initial Franchise Fee $45,000 $75,000

Development Services Fee $0 to $35,000 $0 to $35,000

Real Estate $400,000 to $1,000,000 $400,000 to $1,000,000

Grand Opening Expense $5,000 $5,000

Training Expenses $3,900 to $10,000 $3,900 to $10,000

Start-up Inventory $10,000 $10,000

Miscellaneous Opening Costs $5,000 to $10,000 $5,000 to $10,000

Additional Funds $50,000 to $75,000 $50,000 to $75,000

Total $1,309,900 to $2,471,000 $1,515,900 to $2,587,000

Subtotal Construction $791,000 to $1,281,000 $967,000 to $1,367,000

Miscellaneous Permits, Utility Deposits, Licenses, and Architectural Costs

$50,000 to $100,000 $50,000 to $100,000

FAQs

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How long will it take to get approved as a franchisee?Initial qualification involves a series of background checks and interviews and generally takes 10-12 weeks. After that, site registration and approval can take three to nine months, but is dependent on when you submit a site for registration.

How long will it take to build my restaurant?Generally, once your site has been approved through the internal site registration process and you have signed your option agreement, you have eight months to begin construction and one year to open for business.

How much money will I make? What will be my profit percentage? What are the profit margins of other franchisees? What kind of return on my investment may I expect?KFC provides some key cost information in Item 19 in the FDD. Prospective franchisees are encouraged to use this information as they determine whether they believe a restaurant may be profitable in their area. Existing franchisees are a resource you can use for more information. A list of domestic franchise units, the franchisee’s name and phone number are listed in the FDD.

What kind of training does KFC offer?Before you open your restaurant, three key holders of your restaurant are required to attend and complete KFC’s training program. Key holders of the restaurant could include the franchisee, an Above Store Leader, Restaurant General Manager or Assistant Manager. Training ranges from eight to ten weeks (depending on the unit to be opened) and is conducted both centrally in Louisville, KY and in certified training stores. There is a fee for the training and the Franchisee is responsible for all costs incurred including travel and lodging of the management team.

Does KFC provide restaurant financing?KFC does not provide financing, however, they do provide a list of banks/financing institutions that have expressed an interest in lending to KFC franchisees. To facilitate financing, KFC is listed on the SBA Registry and has prepared a Bank Credit Report to answer loan department inquiries about the KFC/QSR/Franchising business.

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The KFc brAnd beneFITs

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KFC is the leader in the chicken QSR segment. More than 80 percent of the U.S. KFC restaurants are owned and operated by franchisees. As a new franchisee, you will align yourself with a nationally and internationally recognized brand and market share leader. KFC has been franchising since 1952, with more than 5,200 restaurants in the U.S. and more than 15,000 units in 109 countries around the world.

As a franchisee, KFC offers you these advantages:

• Access to nationally and internationally known products (Original Recipe®, Kentucky Grilled Chicken™, Colonel’s Mashed Potatoes and Gravy, Cole Slaw and KFC Biscuits) and a proven operating system that sets you up to compete.

• Nearly 100 percent consumer awareness of the leading QSR chicken brand in the U.S. and around the globe.

• More than $200 million spent annually by KFC and its franchisees on national and local advertising, creating strong imagery and promoting products and offers to drive customers to your restaurant.

• A peer network of more than 630 franchisees, more than 35 percent of which have more than 25 years of experience.

• More than 50 years of KFC franchise support and many programs to help you compete within the QSR and franchise industries.

• Access to the United Foodservice Purchasing Cooperative (UFPC), the largest food-buying co-op in the foodservice industry.

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