KFC Might Lower China Franchise Fee

According to China Yum who owns KFC in China, KFC will expand its China business and will offer a lower price for franchisees in China.

China Yum says that except for big cities like Beijing, Shanghai and Guangzhou and some joint ventures in Wuxi and Suzhou, KFC will open a franchise model in second and third tier cities.

The company also says the franchise initiation fee may be lowered to RMB2 million from the current RMB8 million.

In recent years, KFC has only transferred mature stores to its franchisees and has had only 37 franchised restaurants in China begin from nothing.