Depending on a number of variables, a KFC franchise may offer a significant return on investment. Franchise fees, real estate, and equipment are the initial costs, which range from $1.2 to $2.5 million. Owners of KFC franchise stores can anticipate between $1 million and $2 million in average annual sales per site. Profit margins typically range from 10% to 15% of total sales, depending on the state of the local economy and operational effectiveness. Faster profitability is a result of a well-proven business model and high brand recognition. Typically, KFC franchise store investments pay for themselves in three to five years. ROI is influenced by location, management caliber, and brand standards compliance. Due to economies of scale, franchisees with many units could earn better profits.