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Frequently Asked QuestionsThe following are questions frequently asked by prospective Taco Bell, Long John Silver's and A&W franchisees. For FAQs for KFC, click here. For FAQs for Pizza Hut, click here. Responses to most of these questions may be found in the Franchise Disclosure Document (FDD). We encourage you to read the FDD in its entirety and to consult with an advisor as you consider franchising. You may also want to contact existing KFC, Taco Bell, Pizza Hut, Long John Silver's and A&W franchisees regarding their franchise experience. 1. How much will I pay in royalties? What fees will I pay when I become a franchisee?The following chart lists the initial franchise fees, monthly royalty and advertising fees. These amounts do not include the initial investment required to construct the restaurant building, grand opening expenses, opening inventory, etc. Please refer to the brand FDD, Item 7, for more in depth information on the total initial investment.
2. 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 3-9 months but is dependent on when you submit a site for registration. 3. 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 8 months to begin construction and 1 year to open for business. 4. Who will build my restaurant?As an independent business person, you are responsible for the construction of your restaurant however there are many general contractors that work across America with significant experience building Yum! Restaurants. 5. Will you provide plans and an equipment list? Can I use equipment that I already own, or used equipment?The Yum! Development Team will provide you with standard building plans that you and your contractor (if applicable) can use as well as work with you on any changes to the site layout because of city restrictions, ingress/egress, etc. In most cases you will not be allowed to use equipment or furnishing you already own. You will work with the Unified Foodservice Purchasing Co-op (UFPC) on standards and specifications regarding furnishings, equipment and approved suppliers for both. 6. Does Yum! plan to sell any company-operated restaurants in my area? Can I get a list of all the restaurants available for sale?The Franchisor may sell existing company owned units to existing or new franchisees. Given that these stores are operating today, we do not issue a summary list of what is available. If you are qualified as a franchise candidate and have indicated that you would like to buy stores in a specific geographic area, we will determine if we have stores for sale that meet your request. 7. What will my sales be?Most of our brands make an Item 19 sales claim in their Franchise Disclosure Document. You will be disclosed once you have submitted a completed franchise application. Prospective franchisees are encouraged to conduct their own independent investigation to determine potential sales levels prior to signing any Franchise Agreement. 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 FDDs. 8. 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?Most of our brands provide some key cost information in an Item 19 cost claim in the Franchise Disclosure Document. 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 FDDs. 9. How much will food and supplies cost? What suppliers should I use?A list of approved suppliers will be provided to you and you are required to purchase your supplies from those companies. Most of our brands provide some key cost information in an Item 19 cost claim in the Franchise Disclosure Document. The United Foodservice Purchasing Co-Op (UFPC) works on behalf of the entire system to secure the most favorable pricing for necessary items. 10. Can I use my own recipes and menu ideas?Franchisees must sell only approved products in their restaurants. Franchise advisory boards provide input on potential new items. 11. What type of marketing materials and support will I receive?KFC, Taco Bell, Pizza Hut, Long John Silver's, and A&W are continually working to develop new products and to improve existing products. Franchisees receive a calendar of upcoming events from the brand marketing departments as well as order forms for POP and other advertising materials for specific promotions. 12. What kind of training does Yum! Brands offer?Before you open your restaurant three keyholders of your restaurant are required to attend and complete the brand's training program. Keyholders of the restaurant include the Franchisee or Above Store Leader, Restaurant General Manager and Assistant Manager. Training ranges from 8 - 16 weeks (depending on the brand) and is conducted in a company certified training store. The Franchisee is responsible for all costs incurred including travel and lodging of the management team. 13. Do you have a quality assurance program? Who enforces quality?Each of the Brands has a two tier quality assurance program. The first is a customer based shopper program where restaurants receive customer feedback on their store experience. Performance standards are set by each of the brands. Secondly, the Brands conduct periodic standards reviews in store and give feedback to the operators regarding execution excellence. Franchisees are required to meet certain operating standards as part of their franchise agreement. 14. Will I be required to use specific accounting service software at my restaurant?Each Franchisor's FDD describes the type of electronic cash register system and software requirements to be used in the restaurant. You must prepare and keep detailed records regarding all sales and other financial aspects of your restaurant operations. You may also be required to submit reports of product mix, hourly and day-part sales and other reports as may be determined by the Franchisors. 15. Do you offer a Minority Loan Program?While we encourage members of minority groups to become franchisees, there are currently no programs to provide specific loan assistance to minority applicants. There are many outside lenders who are quite interested in lending to Yum! franchisees. |
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