Overview

For over seventy years and counting, the KFC Corporation continues to operate as an iconic, American treasure, largely due to the image of Colonel Sanders. Multiple generations know of him from television commercials, having long since entered into “fast food nostalgia” territory. Founded in Korbin, KY with operations out of nearby Louisville, they are one of the few restaurant chains who continue experiencing record levels of sales success. Regarding lease agreements, most KFC arrangements will be under NNN, as well as run by franchisees. Lease terms will see seven to eight percent bumps every five years, with many leases being secured by company guarantee. Typically they will offer 3-5 separate five year option renewal terms.

TENANT DESCRIPTION

Back in 1930, the great Harland ‘Colonel’ Sanders originated KFC in a tiny section of a Corbin, KY gas station. Fast forward to 1952, and we can see he was well on his way to success, having started the first KFC franchise.

Decades later, PepsiCo would take over in the mid-80s. Then in 1997, PepsiCo branded KFC, along with Taco Bell and Pizza Hut under the Yum! Brands, Inc. Today, they have closed in on spot #200 in the Fortune 500 list, now pushing over thirteen billion dollars in revenue per annum (statistic current as of 2012).

Counting seventeen thousand separate properties in the U.S. alone, with nearly fifteen thousand in over 120 countries internationally, Kentucky Fried Chicken (KFC) has become mammoth in annual sales revenues. KFC brought in over sixteen billion dollars per annum recently, growing their operational profits over the past 3 years with a nine percent growth rate compounded.

With corporate operations based in Louisville, KY, the KFC brand continues to be famous for all things chicken. Everything from Crispy Kentucky Grilled Chicken®, fresh sandwiches, Hot Wings™ pieces, and Extra Crispy™ Tenders, to name a few.