KFC franchisees pay an initial franchise fee of $45,000 to open a single-brand restaurant. They also pay monthly royalties of 5% of gross sales, which covers marketing and advertising costs. Franchisees must invest in building construction, training, grand opening expenses, and initial inventory in addition to fees. It can take 12-18 months from application to opening a new KFC restaurant. Franchisees are expected to operate the restaurant for at least 20 years under the KFC system and standards.