KFC Operations

The licensee will operate a KFC outlet, which are characterized by a unique system which includes special recipes and menu items, distinctive design, décor and furnishings, specifications and procedures for operations procedures for quality control; training and assistance; and advertising and promotional programs.

1. Financial Assistance :

Parent company will offers two financing programs. Except as described below, KFCH does not offer, directly or indirectly, any arrangements for financing the franchisee’s initial investment or the continuing operation of the KFC business.

1.      Funding Financing Program: 

-          The maximum amount that may be borrowed by any one franchisee is $5,000,000. The minimum loan amount is $200,000.

2.      Minority Lending Assistance Program:

-          If the franchisee meets the parent company criteria for the Program and the parent company agrees to allow the franchisee to participate, then the parent company lending assistance will take the form of which guaranteeing 25% of the principal of the franchised business loan up to a maximum of $3,000,000 per loan or franchisee.

2. Training And Assistance :

The franchisee, manager and the other employees indicated by KFCC must attend and complete to KFCH's satisfaction the initial training program offered by KFCH on the operation of a KFC outlet. At KFCH’s discretion, other employees must attend and complete the training program to KFC’s satisfaction. Training programs may include written material and classroom instruction.

1. Territorry:

The franchisee will have a protected territory of the smaller of a radius of 1 ½ miles of the KFC outlet, or an area around the KFC outlet containing 30,000 people. The franchisee’s rights with respect to the protected territory will not be dependent upon achievement of a certain sales volume, market penetration or other performance factors.

2. Terms Of Agreement And Renewal:

The term of the franchisee agreement is 20 years. Renewal terms are dependent on the franchise agreement signed.

3. Obligations And Restrictions:

During the term of the franchise agreement the franchisee or a fully -trained and qualified manager must devote full time to the management and operation of the KFC outlet. The franchisee is responsible for the full performance of the franchise agreement and, if the franchisee is a corporation, one or more of the shareholders may be required to individually guarantee the performance of the obligations under the franchise agreement. The franchisee must sell all Required Products as KFCC periodically designates. The franchisee may not deliver any product from the KFC outlet or anywhere else unless separately approved for delivery and have signed a Delivery Amendment. The franchisee may cater (not including delivery), and make sales at special events only the franchisee complies with KFCC's procedures.