in 1952, Colonel Harland Sanders franchised his fast food chicken restaurant called Kentucky Fried Chicken. He was in his early 60's at the time, which has made his story synonymous with the idea that it's never too late to achieve greatness. Now, Kentucky Fried Chicken (KFC) (Also briefly referred to as Kitchen Fresh Chicken during a re-branding effort in 2010) is one of the most iconic franchises around.
They are currently ranked #13 on the QSR 50 - list of the top 50 fast food franchises in America. They are absolutely HUGE, with revenues exceeding $19 BILLION! That's a lot of chicken!
The brand is undeniably successful - but does that success guarantee that a franchisee will be able "have their chicken and eat it too"? Or, will owning a KFC franchise leave you with the same feelings of regret that you get from eating the Original Recipe? Read on to find out the truth about KFC and how it compares to Honest Abe Roofing.
Startup Costs KFC - Acording to the 2018 KFC F.D.D., startup costs are some of the largest in the franchise world. The average franchisee will invest $2,000,000 just to get the doors open (which includes the $48,000 franchise fee). HAR - To open your Honest Abe Roofing, you should expect to invest less than $98,000 (for the first 3 months of operation). That's it. No build out, no deep fryers, no heat lamps. Royalties & Brand Development KFC - 5% Royalty & 4.5% Brand Development HAR - 7% Royalty & 3% Brand Development Revenues KFC - According to Item 19 of the KFC F.D.D., average revenues for franchised locations were $1.09 million. Which is higher than some of the other QSR Options. For example, the average Qdoba location generates $950,000 annually. And, The infamous Subway does $450,000. So, KFC is a step up from them, but we're not comparing QSR's. HAR - Item 19 in the Honest Abe Roofing F.D.D. shows revenues in 2017 of $8.1 MILLION. Or, in layman's terms - 8 TIMES more than KFC! Lifestyle Differences KFC - The life of a KFC franchisee could be pretty good. They do allow you to be an absentee owner. There is also not a lot out there about unhappy franchisees. But, as with everything, the facts say a lot. What do the facts say about KFC? Well, according to their own F.D.D., over 103 locations have closed since 2015. You can read into that whatever you'd like. HAR - You will be overseeing the business, finding and retaining subcontractors to do the physical labor, working with your Honest Abe Roofing Marketing Team to make sure the leads are coming in, assembling a winning sales team, building wealth. Also, according to our F.D.D., no locations closed in 2015, 2016, or 2017! Marketing KFC - KFC obviously understands the importance of marketing. No company gets as big as them without advertising on a mass scale. The unfortunate thing for franchise locations is that lately, KFC has an identity crises with their advertising. They don't seem to have a clear objective, other than they want you to be confused about their direction. They do run national and regional campaigns on TV. The franchisees are paying of course, but the resources are still out there to drive business.
Honest Abe Roofing - We also have a very robust marketing plan. We run regional campaigns on social media and work with you to plan your local marketing. Depending on the market you are in we will utilize TV, radio, digital advertising, and anything else that we believe will help bring you leads. We have hundreds of commercials to choose from. Our advertising has won regional awards.
Summary
We understand that KFC is a HUGE global brand! There is a sense of comfort associated with investing in something predictable and "safe". While we may be the "new kid on the block", we believe that the information detailed above will show that our system really is the "safe" investment.
If you're ready to make the "safe" investment by becoming an Honest Abe Roofing franchisee, then call 866-587-5171 or fill out our contact form here.
