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Running a KFC franchise involves several hidden costs beyond the initial investment. Ongoing royalty fees, typically 5% of gross sales, can significantly impact profitability. Marketing contributions, usually 5% of sales, are required for national advertising campaigns. KFC franchise Store owners face fluctuating food costs and potential inventory waste. Equipment maintenance and upgrades can be substantial expenses. Employee training and turnover costs are often underestimated. Local regulations may necessitate unexpected renovations or equipment changes. Insurance premiums, including liability coverage, can be considerable. Technology upgrades for POS systems and digital ordering platforms are increasingly necessary. KFC franchise Store operators must also budget for periodic remodeling to meet brand standards. These hidden costs can significantly affect the overall financial performance of the franchise.
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