Congratulations
KFC Foundation awards $2.5 million in scholarships — the biggest award year to date!
Nearly 2,000 KFC restaurants are already simplifying their cooking oil handling with Total Oil Management, the all-in-one solution for delivery, filtration, and recycling.
They’re saving money, too. Join them & combat rising oil prices with a special pricing program we cooked up with RSCS, exclusively for KFC kitchens.
Start Saving Now!
“It’s a system that pays for itself over and over again.”
- Matt Hansen, COO of KBP Brands
Whensomething happens, as significant as the passing of a two-time AKFCF president, founder of the AKFCF Quarterly (both in newsletter and magazine forms), and one of the most inspiring servant leaders in our system, you can bet there will be a tribute to a life well-lived in the pages of the Quarterly. I felt the need to pause, reflect and make sure we got it right. There have only been three editors in the history of this publication, and while I came on board as an assistant editor as Darlene Pfeiffer was handing over the reins to Jeanine Bagshaw, she still greatly impacted me. As anyone who knew her would expect, she checked in on me during my journey to editor and every time I was lucky enough to see her in person. She impacted so many people that I found it imperative to have one of her closest friends write their story and share the memories from others in our system who will greatly miss Darlene. Please take time to read the memories and tribute to Darlene beginning on page 38. Get further inspired reading about the 2023 KFC Foundation scholarships on page 24. The KFC Foundation awarded $2.5 million in scholarships this year. And to think this is only a portion of what they do for our team members. Thank you to everyone involved with the KFC Foundation for everything you do!
As always, we have an update from the GAC; columns from our esteemed President, Justin Stewart; our new NCAC Vice Chair, Jim McKenzie; AKFCF Executive Director, Kelly Rodenberg; and Legal Counsel, Ron Gardner. In addition, you’ll hear from AKFCF Finance Committee Chair, Austin Felker; AKFCF Communications Committee Chair, Kevin Schlutz; Southeast Regional Short from the Southeast Executive Director, Jennifer Thomas; RSCS Member Programs update; and an update from the KFC Foundation.
While this issue is getting to your hands a little later than normal, we’re going to keep as close to our production schedule as possible for the rest of the year. The fall issue should be mailed in October with a sneak peek of what Justin has planned for 2024. Also keep an eye out in mid-to-late September for the 2024 AKFCF Convention registration. You won’t want to miss this re-imagined Convention at the beautiful Aria Resort & Casino in Las Vegas!
Warmest regards,
AKFCF QUARTERLY MISSION STATEMENT
The AKFCF Quarterly is the voice of today’s franchisee family and supports the mission of the Association of Kentucky Fried Chicken Franchisees, Inc.
AKFCF EDITORIAL TEAM
AKFCF President Justin Stewart
Editor Michelle Hunt
Assistant Editor Julie Mantlo
AKFCF Administrative Michelle Hunt
Manager
Communications Chair Kevin Schlutz
Executive Director Kelly Rodenberg
Past President Keith Cole
The AKFCF Quarterly (ISSN 1071-9873) is published by the Association of Kentucky Fried Chicken Franchisees for its members and their friends. AKFCF is the independent Association of Kentucky Fried Chicken Franchisees.
FRANCHISEE EDITORS:
Michelle Hunt
14812 N Avenue, Columbus Junction, IA 52738
Phone: (319) 728-3282
Fax: (319) 728-2940
michelle.hunt@akfcf.com
Julie Mantlo
855 Lovers Lane, Suite 111, Bowling Green, KY 42103 Phone: (270) 783-8880 julie@rogmancorp.com
Zaira Guevara (International Liaison)
7750 NW 46TH Street PTY 1495 Doral, FL 33166
Phone: (305) 384-4242 (U.S.) (011) 506 2208-7828 (Direct) zguevara@caribla.com
Copyright ©2023 AKFCF, Inc. All rights reserved. Articles may be quoted with credit to the source. Information in the AKFCF Quarterly (ISSN 1071-9873) represents the views of the authors and unless noted otherwise does not necessarily reflect the policies or position of AKFCF, Inc. Acceptance of paid advertising does not imply endorsement by the Association, or approval of the advertiser or its product or service by KFC Corporation.
Send all advertising and editorial submissions for AKFCF Quarterly to: NEW SOUTH PUBLISHING, INC. 9040 Roswell Road, Suite 210, Atlanta, GA 30350 Phone: 770.650.1102
President Larry Lebovitz
Vice President/Publisher John Hanna
Publishing Editor Cory Sekine-Pettite
Art Director Jack Simonetta
Advertising & Megan Willis
Production Manager
Account Executive Jamie Ryan
Circulation Manager Amy Fine
Accounting Marilyn Walker
My brother, Todd, and I have been franchisees since 1994. When you are young, taking out an equipment loan for $250k and signing a 20-year lease doesn’t seem like a big deal. Yet, at the time, I don’t think we ever thought about the “what if” scenario. Looking back now, I realize Todd probably had three back-up plans if it didn’t succeed; there’s a reason he has had high blood pressure since he was 18 (I might be exaggerating, but not by much).
At some point, each of you made the same risk assessment, signed your name on the dotted line, and took that leap of faith that this brand was going to be a thriving business that supported your family. This separates you from those who weren’t willing to take the same risks. I distinctly remember a conversation with a close friend who was a sales rep making good money working for a large pharmaceutical company. He was lamenting on how he had watched some of his friends become extremely successful entrepreneurs and that he was smarter than they were, so he should be just as successful. I pointed out that his friends, the entrepreneurs, were willing to
put it all on the line. My friend was not willing to do this; he enjoyed the safety of working for a big company with all the securities it provided, which isn’t a bad thing. But not everyone is willing to take those risks. To be clear, the risk doesn’t necessarily guarantee you success either.
For Todd and me, there were two periods when our business came close to failure. I’ll speak to the first time and maybe circle back to the second time in a future article. It was the fall of 1997 and we could see what was coming for us financially. We had been very successful in our first three ground-up locations; unfortunately, that made us a little cocky. The next two restaurants turned out to be low performers, and as I’ve told many franchisees since, when you have 100 restaurants you can open an underperforming unit or two and be ok, but if you only have five and two of those are big losers, it can take you completely out of the game.
We concluded that we needed to acquire more profitable locations to spread out our debt and overhead. As luck would have it, I happened to be attending a NW Region-
al meeting in Tucson, Arizona when the then-KFCC President, Jeff Moody, said with the last few years of successes at KFC (we had recently rolled out Strips and pot pies) if a franchisee wasn’t up for the changes he was implementing, it might be a good time to sell out. I instantly jumped up on my chair and shouted, “If anyone is selling, we are buying!” Later, I was approached by franchisee Ralph Harman. Since I am writing this article, you know that we worked out a deal that subsequently saved our company! Of course, Ralph nor anyone else knew this at the time. If you are reading this Ralph, thank you for saving our butts! As I reflect on our journey, I am reminded that when we started there were close to 850 franchisees in the system. Now, there are only 273 of us, but I know that, in-spite of our smaller numbers, we are stronger than we have ever been. We continue to work together across the country by sharing best practices and ideas at our Convention and regional meetings. We are working together with the brand to bring game-changing initiatives to the system, including a new Tech agreement and a new development incentive that is bigger than any franchised brand has ever offered to franchisees. That incentive even has protections if a restaurant is underperforming because it is in a developing trade area. As you now know, this would have kept Todd and I out of trouble early on.
I can’t remember a time when I was this excited about the future of KFC! Tarun and team are working hard. Your franchisee leadership at the NCAC and AKFCF are involved in every K2 project, working with KFCC to get us to the summit on all these initiatives. Yes, there will be challenges, but I have no doubt we will accelerate our sales, profits, and development! n
At some point, each of you made the same risk assessment, signed your name on the dotted line, and took that leap of faith that this brand was going to be a thriving business that supported your family. This separates you from those who weren’t willing to take the same risks.
Saves Money. Longer oil life and less oil absorbed into the food means lower costs!
Cleaner. No loose powder with built-in system.
Easy to Use. One-step processjust put in a new pad each day.
Quick Circulation. Only 5 minutes and it’s ready to cook.
Compact. 30-day packaging. Easy to store and track replacement usage.
Versatile. Works with all types of oil including Zero Trans Fat Oil
Our goal at Restaurant Supply Chain Solutions is to provide a competitive advantage to our members. Through RSCS Member Programs, we offer discounts on products and services used to run your business. We’re constantly adding new programs, categories, and vetted suppliers to our service offering, so be sure to join our mailing list to receive updates from RSCS.
Our entire list of programs can be found on our website. Using our Member Programs Directory, you can find detailed information on each of the programs we offer, the discounts available, as well as how to sign up through each supplier.
Employee Perks is a free benefit that our members can offer as a fantastic employee incentive. Visit our website to download printable flyers for your employees so they can start saving money on products and services they may already be using today.
By Jim McKenzie, NCAC Vice Chair
This column marks my first message to the AKFCF Family as Vice Chair of the NCAC. I feel honored and grateful to have been elected to this position. I want to extend a heartfelt thank you to Tom Broome, who served as the Vice Chair since early 2020, and led the NCAC through times of significant change. His leadership, flexibility, collaborative spirit, and “always-on” commitment to KFC have been nothing short of amazing. I look forward to continuing to partner with him and learn from him as I transition into this role. Thankfully, Tom is still an active NCAC Committee member whose contributions help the entire system.
Todd Stewart has rolled off the NCAC Committee after nine years of service (plus two as a Shadow) and his leadership, especially as our Contracts and Facilities Subcommittee Chair, and active and engaged committee participation will be missed. A big thank you to Todd and I look forward to his continued subcommittee partnership. A big welcome from the NCAC goes out to Jamie Jackson, elected to serve as Representative #12 from the Northwest. KFCC President Tarun Lal also appointed Ben Dubost, KFC’s chief development officer, to the NCAC and I look forward to his engaged leadership as we partner to
grow this great brand. Your full NCAC is working together to drive profitable sales and transaction growth while also reaching new customers, honoring our core customers, and remaining meaningful and relevant in this ever-competitive environment. By the time you read this, our customers will be enjoying our $20 Fill Up, our new Ultimate BBQ Chicken Sandwich, and our Blackberry Lemonade with fully integrated marketing campaigns to showcase and highlight what makes KFC special and craveable. Our Nuggets are a hit with customers, attracting new customers along the way. In the future, you will see our
delicious, premium Nuggets along with our value $20 Fill Up offer play key roles in our marketing windows. You will continue to see engaging advertising across all mediums, along with public relations efforts to drive news, awareness, and action from our customers across the country.
Hopefully, you have had a chance to see the social campaign featuring Deion Sanders and his family. They are big KFC fans and are seen not only enjoying buckets of our Original Recipe Chicken, Nuggets, Sandwiches and Original Recipe Fries, they even drive up to a drive-thru in a pretty styling family-sized KFC golf cart. The ads are fun and remind people that there is really something for everyone in the family at KFC. As the Sanders’ family says, “Looks good, tastes good, it’s all good baby!” You can find them on social media platforms, including KFC’s Instagram.
To continue the momentum on our marketing calendar, testing with a focus on meaningful, relevant, and executable innovation will continue to play an important role. We recently tasted some of the great work that KFC’s Vijay Sukumar and his team are developing with the plan for those delicious items make it to our calendar and limited time menu soon. I remain excited and optimistic about the future.
This fall, we will offer our new, delicious, Hot and Spicy Wings. Our customers will be happy to enjoy these, especially during football season, or anytime during the limited time offer. We will have advertising materials that work hard for us and with a strong call to action to come get your KFC Hot and Spicy Wings now.
Guest experience, both in our restaurants and in our owned online channels, remains an important priority. We must
give our customers what they want from KFC or they will find what they want from our competitors. Various subcommittees, including Marketing, Operations Excellence, and Technology will continue to focus on guest experience as one of the decision-making filters. I expect you will hear more soon on our Guest Recovery programs and some intentional work to ensure everything possible is being done to recover and retain customers. All our marketing and operations efforts must work handin-hand, whether it is in our restaurants, online, or with our vendor partners.
I look forward to continuing to share with you the work of the NCAC and invite you to reach out to me, your regional NCAC representative, or to Karen Sherman, the NCAC executive director, with any NCAC-related questions. We are all here to serve.
You will continue to see engaging advertising across all mediums, along with public relations efforts to drive news, awareness, and action from our customers across the country.
Hopefully, you have had a chance to see the social campaign featuring Deion Sanders and his family. They are big KFC fans and are seen not only enjoying including buckets of our Original Recipe Chicken, Nuggets, Sandwiches and Original Recipe Fries, they even drive up to a drive-thru in a pretty styling family-sized KFC golf cart.
A“loved” feature at Australian KFC restaurants that not everyone is aware of is being fondly remembered — with calls to bring it back.
The blast from the past was instigated by a particularly nostalgic Aussie, who urged the fast-food chain to “bring back [the] all-you-can-eat buffets,” which reportedly closed in the early 2000s.
“Southlake WA closed off the buffet in early 2000s,” he said on the Old Shops Australia Facebook group recently, sharing a photo as well.
The post resonated with many, who recalled how “glorious” the idea was and shared their own memories at stores in WA, NSW, Queensland, and Victoria.
“Ahhh KFC all you can eat at Bondi Junction. $8.95... where I chose to eat ONLY the skin off 6 pieces (because I could), downed it down with unlimited gravy …One of the ‘most proudest’ moments of my 20s!” one person said.
“There was one in Thomastown Vic, back in the late 80s early 90s... I remember going there after Sunday church with the family and pigging out,” another said.
“I think 94/95 was when I visited Bondi Junction and the Newcastle one. I actually have never eaten KFC pieces of chicken ever since!
Definitely overloaded,” a third person said.
“Brisbane had one, I went there for my 17th birthday,” another said. While others “never knew they existed,” and wished they did before they shut. “No way, never heard of an all you can eat at KFC, I would have been there every day,” one person said.
Source: Yahoo News
Sanders and his family will highlight a number of items, including Kentucky Fried Chicken Nuggets.
Deion Sanders and his family apparently frequent KFC.
And Sanders’ go-to is a bucket of Original Recipe fried chicken. The pro football Hall of
Famer and head football coach at the University of Colorado at Boulder said the chicken chain has been a staple lunch and dinner choice for his family since he was a kid.
Now, Sanders has teamed up with the chicken chain to promote its latest menu options, including new Kentucky Fried Chicken Nuggets and other soon-to-be announced offerings, according to a press release.
“Game days, family and a bucket of Kentucky Fried Chicken have always brought us memorable moments, so this partnership is a real family affair. It’s prime time, baby!” said Sanders in a statement.
The partnership kicked off with content from the chain featuring the Sanders family visiting a KFC drive-thru on a KFC branded golf cart.
“KFC is all about serving the joy of our finger lickin’ good food to all families,” said Nick Chavez, CMO of the brand. “The Sanders family embodies that spirit of family connection, and all genuinely love Kentucky Fried Chicken, so this partnership is a touchdown.”
Source: Restaurant Business
On Tuesday, May 16, 2023, KFC Trinidad and Tobago relaunched and expanded its Harvest Program at the Living Waters Community, one of its partner NGOs.
Harvest is a global KFC initiative that aims to reduce food wastage at its restaurants, by donating all surplus food to the people most in need.
KFC sees this program as its contribution to helping reduce hunger — one meal at a time.
The Harvest protocol requires strict international food health and safety standards necessary for the most effective identification, storage, and transport of surplus food.
Roger Rambharose, VP of KFC and Pizzabrand’s presence in Trinidad and Tobago, the company wanted to explore what more it could do to alleviate hunger locally.
Given Harvest’s alignment with this goal, significant resources were allocated to Harvest’s needs.
This includes a refrigerated truck dedicated to collecting and distributing Harvest donations from 50 of its stores.
Year to date, the company has donated food that was transformed into over 45,000 meals for persons in need in Trinidad and Tobago.
Rambharose revealed that KFC could potentially donate enough for 100,000 meals by the end of this year. Some of its Harvest partners are:
• San Fernando Shelter for Displaced Persons
• San Fernando West Women on the Move
• Church of God Ministries International
• SEWA TT
• International Youth Fellowship
These partners were present to receive total donations of $20,000, which KFC hopes will further assist them in battling hunger amongst the underprivileged in
William Hartshorn, of Signal Mountain, Tennessee, is having a memorable 100th birthday season.
On his big day, June 14, scores of friends and family members gathered at the Privateer Yacht Club in Hixson for birthday cake and KFC.
Then, Hartshorn got a ride in an airplane courtesy of a retired Air Force pilot, Jeff Nuccio, who flew him around the city and gave him a bird’s-eye view of his home at Alexian Village of Tennessee.
“You can’t be in a room with my father without talk quickly turning to the flying,” said David Hartshorn, William Hartshorn’s son, explaining that several friends and family members all agreed that a flight would be a fitting cap to the World War II veteran’s 100th year.
Now, to top it off, Hartshorn will be the grand marshal of the Fourth of July Parade on Signal Mountain. Fittingly, he’ll be riding in a 1941 Packard automobile.
“It’s been wonderful,” Hartshorn, a WWII fighter pilot who flew 26 combat missions, said in an interview at his apartment. “The Lord has taken care of me ... and you can put that in the newspaper.”
You don’t live 100 years without experiencing some adversity, and Hartshorn has had his share. But as a member of the
so-called Greatest Generation, he also has deep reserves of resilience. He is one of the last surviving members of his Air Force unit, which stopped having reunions when the number of vets shrank from 300 to just a handful.
When he was 21 years old, Hartshorn was flying P-47 fighter airplanes as part of the U.S. Army’s Eighth Air Force (56th Fighter Group) when he was shot down by the Germans in combat over Belgium.
In 1944, Hartshorn was hit by enemy fire while dive-bombing and strafing during Operation Market Garden, an allied push to capture bridges in a part of the Netherlands controlled by German forces.
He was able to steer the airplane to friendly territory and bailed out, breaking
two bones in his leg in the process. He was eventually shipped back to the United States, where he spent more than a year in treatment.
Still, a few years later he volunteered for service in the Korean conflict, where he was an air-traffic controller.
‘I had a job a good job working for a steel company [at the time], but I missed airplanes,” he said.
Later in life, Hartshorn endured the loss of a daughter to cancer, and he has had two heart bypass surgeries. But aside from fatigue, he has no immediate health concerns, he said.
His recent flight, in a Beech Bonanza single-engine airplane taking off from Cleveland (Tennessee) Regional Jetport, was the first time he had been flying “in years” he said, but the experience came off without a hitch.
“No apprehension,” he said. “I was up for about an hour, and it was very comfortable and scenic.”
He said he was actually more nervous about his birthday party, but his anxiety melted away in the outpouring of love from his friends.
“It was perfect location, good weather, and [Chickamauga Lake] was beautiful,” he said. “It was wonderful — 100 years.”
Source: Chattanooga Times Free Press
KFC offers a new twist on its signature Double Down with the introduction of the new Hot Honey Double Down in New Zealand.
The Hot Honey Double Down features two spicy Zinger Fillets, bacon, two slices of cheese, and covered in tangy Hot Honey Sauce. You can also enjoy it with two Original Zinger Fillets.
While prices may vary, the Hot Honey Double Down can be enjoyed on its own for $12.99 NZ dollars, or about $8.06 U.S. dollars. A Hot Honey Double Down Combo served with a regular fries and drink is also available for $18.49 NZ dollars, or about $11.47 U.S. dollars.
You can find the new Hot Honey Double Down at participating locations across New Zealand for a limited time.
Source: Chew Boom
KFC is among dozens of businesses making historic set of commitments to accelerate the economic integration of Ukrainian refugee women and other refugees.
On the eve of World Refugee Day in June and as Europe faces its largest refugee crisis since World War II — including 5 million refugees, overwhelmingly women, from Ukraine — KFC announced its commitment to train and hire 300 Ukrainian refugee women and other refugees at the Tent European Business Summit in Paris. The event was organized by the Tent Partnership for Refugees (Tent), a global network of more than 300 companies committed to supporting the economic integration of refugees.
KFC joins dozens of major employers and some of the best-known brands across
Europe including Accenture, Amazon, Marriott International, and Microsoft in pledging to provide jobs and training to tens of thousands of refugees across Europe over the next three years. Collectively, this marks the most significant set of business commitments ever made to advance the economic integration of refugees.
Specifically, KFC’s commitment will see the business hire and train 300 refugees, including Ukrainian refugee women, over three years across its restaurants in the Pan-European region. This commitment builds on KFC’s successful refugee hiring pilots in Germany, Poland, and Romania in 2022.
“We recognize the incredible resilience and untapped potential that lies within refugee communities. By offering employment opportunities and investing in their personal and professional development, including our commitment to train and hire 300 Ukrainian refugee women and other refugees, we strive to create an inclusive and supportive environment where everyone can thrive,” said Cristi Lockett, chief people officer for KFC Global. “We are proud to partner with the Tent Partnership for Refugees; through this collaboration, we are determined to make a lasting difference and create a brighter future for all.”
Source: global.kfc.com
Yum China Holdings, Inc., announced recently that KFC China has expanded several corporate social responsibility (CSR) initiatives that cover a wide range of areas, including supporting the disadvantaged, preserving the environment, and reducing food waste.
“Giving back to society is deeply embedded in our culture. We actively support causes that can have positive impact on the communities we serve,” said Joey Wat, CEO of Yum China. “We aim to create an effective platform that inspires people to come together with a shared purpose and make a difference in our community.”
Warton Wang, general manager of KFC China, added, “KFC China will continue leveraging its extensive restaurant network to further its social responsibility initiatives, with a particular focus on supporting the disadvantaged, promoting sustainability and climate action, as well as advocating for healthy lifestyles.”
KFC China announced the following expanded CSR initiatives:
• As a joint effort between KFC China and the China Children and Teenagers’ Fund, the “KFC Little Migratory Bird Fund” will undergo significant enhancements, aiming to expand the fund’s support for underprivileged children who face challenges such as poverty and disabilities. Since 2016, the fund has been promoting the physical and mental development of
left-behind children through reading, sports, and arts activities across the country. KFC China also shared that it aims to provide financial assistance to 1,000 children and organize 200 caring and companionship activities by the end of 2024.
• KFC China launched a reusable serving basket made from KFC’s coffee grounds to promote climate action. The baskets will initially be rolled out at 1,500 KFC restaurants in Beijing, Shanghai, Guangzhou, Shenzhen, and Hangzhou, before being progressively introduced at restaurants nationwide. In addition, KFC China is committed to introducing more carbon neutral products through forest planting initiatives in key areas to support environment protection and restoration.
• KFC China will expand its Food Bank Program, which distributes free surplus food from its stores. The program is set to be expanded to more than 700 stores in over 100 cities by the end of 2023, doubling that from 2022. The program reduces food waste and GHG emissions.
• KFC China unveiled a new “Angel Restaurant” in Hangzhou, the host city for the 19th Asian Games and 4th Asian Para Games. KFC China will select outstanding “Angel Employees” from its Angel Restau-
rants to form a special service team for the Asian Games. The Angel Restaurants initiative creates a welcoming and inclusive workplace for people with special needs. As of the end of June 2023, KFC China has 36 Angel Restaurants in 32 cities, employing over 200 individuals with special needs each year. These restaurants are equipped with upgraded visual devices, and custom visual learning materials to enhance work environment of Angel Employees.
Since entering mainland China 36 years ago, KFC China grown to more than 9,200 restaurants across 1,800 cities, KFC China strives to utilize its extensive reach as a powerful engagement platform that brings people together in supporting the disadvantaged, protecting the environment, and fostering a more caring society.
Source: Yum China Holdings
Clayton “Clay” Morris Neal, Sr., a joint owner and the executive VP of JRN, Inc., passed away peacefully June 1, 2023, at Maury Regional Medical Center in Columbia, Tennessee. For over 35 years, Clay’s passion for acquiring “corner, red-light” real estate sites established JRN as one of the largest franchise restaurant companies in the United States with locations in 11 states across the Southeast. He was the recipient of Yum! Brands Developer of the Year Award in 2020. Over his career, Clay was instrumental in the development of many prototype restaurant images in the KFC system, including the first Next Generation KFC in 2022. Clay is survived by his wife, Tina Marie Turner Neal, of Columbia; daughter, Ashley Anne-Marie Neal, of Columbia; son, Clayton Morris Neal, Jr., of Columbia; mother, Linda Faye Morris, of Columbia; brothers, Brett Alexander Neal (Jennifer) and Tyrone Kenneth Neal, both of Columbia; sister, Grace Anne Morris, of Columbia; and a large extended family.
In our business, there is a great deal of terminology and jargon. As more processes and systems are added, the acronyms continue to pile up. Thus, AKFCF Quarterly decided it is time for us all to brush up on the many acronyms you will hear in your daily lives and read about in this magazine. Be sure to pass this along to your employees, or post a copy in your offices.
76(5P) 1976(5P) KFC Franchise Agreement
AKFCF Association of Kentucky Fried Chicken Franchisees
ARL Above Restaurant Leader
ASAP American Showman Asset Program
AUM Assistant Unit Manager
BOGO Buy One Get One
BOH Back-of-house
BSC Balanced Scorecard
COB Chicken on the Bone
COGS Cost of Goods Sold
DID YOU KNOW WE SELL EV CHARGING STATIONS?
•INTERIOR (INCLUDING GERMICIDAL LIGHTING FOR YOUR
•LIGHTING CONTROLS & SWITCHGEAR!
DMA Designated Marketing Area
FA (Or F/A) Franchise Agreement
FIT Food Innovation Team
FSC Food Safety Consultation
GAC Government Affairs Committee
IAYF International Association of Yum Franchisees (formerly known as the IAKFCF, International Association of KFC Franchisees)
KFCC Kentucky Fried Chicken Corporation
NAC National Advertising Cooperative (merged with NFAC to become NCAC)
NCAC National Council and Advertising Cooperative
NFAC National Franchisee Advisory Council (merged with NAC to become NCAC)
NMS ational Marketing Subcommittee
NPC National Purchasing Cooperative (i.e., KFC NPC)
OEC Operations Excellence Committee
PAC Political Action Committee
POP Point of Purchase
POS Point of Sale
QSR Quick Serve Restaurant
REC Restaurant Economics Committee
RGM Restaurant General Manager
RMI Restaurant Margin Improvement
ROCC Restaurant Operations Compliance Check
ROI Return on Investment
RSC Restaurant Support Center
RSCS Restaurant Supply Chain Solutions (formerly UFPC)
SBRA Supplier Business Relationship Agreement
TOL Territory Operations Leader
TRP Targeted Rating Point
VOC Voice of the Customer (formerly CBCC)
YUM Yum! Brands
YRI Yum! Restaurants International
NEGOTIATIONS REGARDING THE DEBT LIMIT ARE IN THE REARVIEW
MIRROR
By Amber Peoples
The debt-limit deals have come to an end and a potential national economic crisis has been averted.
Discussions over the future of the country’s debt began in January of this year, following a letter from U.S. Treasury Secretary Janet Yellen to House leadership, warning that the United States had reached the debt ceiling established in 2021. President Joe Biden negotiated directly with House Speaker Kevin McCarthy for the first half of the year, culminating in a bipartisan agreement that will suspend the government’s debt ceiling until after 2024 elections. The House of Representatives passed The Fiscal Responsibility Act in a 314-117 vote, with the Senate following suit in a 63-36 vote to approve the agreement. The Treasury Department had advised that the nation would be unable to pay its bills on June 5 — a deadline that was narrowly avoided when President Biden signed the bill into law on June 3.
In exchange for lifting the $31.4 trillion debt ceiling until Jan. 1, 2025, non-defense discretionary spending will be kept flat next year, with a 1-percent increase in 2025. Additionally, defense spending will see a 3-percent increase from $858 billion to $864 billion, an amount that is in line with Biden’s current proposed budget for 2024. While Republicans wanted a freeze on overall spending for the next 10 years, the bill does not guarantee any budget caps after 2025. The bill also will claw back unspent COVID relief funds, make a slight adjustment to welfare requirements, add $80 billion to the budget of the Internal Revenue Service (IRS) to enforce the tax code of the Inflation Reduction Act, and ease the process of ob-
taining licenses for fossil fuel and renewable energy projects.
In a statement regarding the negotiations surrounding the bill, Biden said “Our teams were able to get along, get things done, were straightforward with one another, completely honest with one another, respectful with one another. Both sides operated in good faith. Both sides kept their word.” Treasury spokesperson Lily Adams deemed the agreement “a strong fiscally responsible proposal,” adding that “the Treasury market remains the safest, deepest, and most liquid market in the world.”
However, members of Congress from the far left and far right were not as enthusiastic about the negotiations, with several offering backlash. Biden encountered liberals who were critical of his willingness to consider new work requirements for social programs, his refusal to demand tax increases, and his
consideration of a spending freeze for next year. Speaker McCarthy faced dissent from GOP House members, as they worry he has not been firm enough on spending cuts.
McCarthy has been on shaky ground with the most conservative members of his faction since he threw his hat in the ring for the House’s top position. McCarthy’s own party blocked him from winning the January speaker vote for a historic 14 rounds, ending in a series of backroom deals with the ultra-conservative House Freedom Caucus to secure the required votes. One of the provisions of these agreements was the ability for any singular Representative to call for a vote to remove McCarthy from the speaker spot. Although this power has not been utilized, the pressure facing the Speaker as he navigated debt negotiations was significant.
With negotiations regarding the debt limit in the rearview mirror, members are wasting no time in looking to the next budget fight. “In the coming months, Senate Republicans will continue working to provide for the common defense and control Washington Democrats’ reckless spending,” Senate Minority Leader Mitch McConnell said in a statement. McConnell was referencing 12 bills for the next fiscal year that Congress will work through before the September 30 deadline.
Secretary Janet Yellen offered wise words to members of Congress for future negotiations imploring, “I continue to strongly believe that the full faith and credit of the United States must never be used as a bargaining chip.” n
While Republicans wanted a freeze on overall spending for the next 10 years, the bill does not guarantee any budget caps after 2025.
Contributing to the AKFCF Political Action Committee (PAC) is the best way to support the election and re-election committees of pro-business Members of Congress who share the same concerns as franchisees. The money raised in the PAC goes directly to the campaign of those running for Congress, or incumbent members seeking re-election.
You may make your 2023 AKFCF PAC donation online by visiting our portal on the AKFCF website in the Government Affairs tab.
For more information, please contact your regional GAC representative or Amber Peoples of Polaris Consulting, LLC (apeoples@polariswdc.com).
KFC Foundation awards $2.5 million in scholarships — the biggest award year to date!
Thanks to your continued generosity and your teams’ exceptional fundraising efforts through Round Up, we were able to award a record $2.5 million in KFC Foundation Scholarships this year to more than 500 KFC restaurant employees! Of those, hundreds received a $5,000 or $2,500 award and, for the first time ever, 11 deserving KFC restaurant employees received a $20,000 scholarship. Check out their feature profiles at the end of this article!
Monika Khadka, KFC team member in Warrenton, Virginia (Mitra QSR), received the prestigious Janet L. Kuhn Scholarship, which doubled her scholarship amount to a total of $10,000.
A look at this year’s scholarship winners:
30% have previously won a KFC Foundation Scholarship
18 recipients have received a KFC Foundation Scholarship four or more times!
63% are first-generation college students
Five KFC Foundation Scholarship winners earned their high school credential through our GED Achievement program!
• Brandon Gaby, Phil Mook Enterprises
• Dominatrice Cantrell-Long, Central Iowa, Inc.
• Rasheed Jellouli, Stewart Restaurant Group
• Enrique Lavin Villanueva, NRI – Sibert
• Chelora Trice, NRI – Sibert
Did you know… Anyone who earns their GED through the KFC Foundation and meets minimum eligibility requirements is guaranteed a $2,500 or $5,000 scholarship for college or trade school!
17% are non-native English speakers
*Demographic statistics are self-reported within the scholarship application.
Congratulations to our 2023 KFC Foundation Scholarship recipients!
Supervisor
JRN Isaiah Chapman $5,000 Greer SC Team Member
JRN Jazmin Clark $5,000 Albany GA Shift Supervisor
JRN Michelle Liu $5,000 Dalton GA Team Member
JRN Maria Perez $5,000 Dalton GA Team Member
JRN Josue Sandoval $5,000 Dalton GA Team Member
JRN Parker Emous $5,000 Ringgold GA Team Member
JRN Joshua Franklin $5,000 Ringgold GA Team Member
JRN Gracie Henry $2,500 Ringgold GA Team Member
JRN Samantha Poore $5,000 Ringgold GA Assistant Manager
JRN Sophia Smith $5,000
“This scholarship helps not only myself, but my family.”
As a first-generation college student, Haili has overcome numerous challenges to pursue her dreams. Growing up, she took care of her four younger siblings while her
parents worked tirelessly to provide for their family. Now a mother herself, Haili made the courageous decision to go back to college and pursue a bachelor’s in accounting at the University of Phoenix, all while working full-time as a bookkeeper.
In January 2023, Haili started working part-time at her local KFC — on top of her full-time job and classes — to help alleviate the financial burdens of achieving her goals. Her hard work and dedication earned her one of our $20,000 scholarships, which will help her become a certified public accountant and fulfill her dream of assisting others in attaining financial stability.
Mara Heino
Shift supervisor with Roubekas Enterprises, Marquette, MI
“I am a driven and determined individual who doesn’t want money to hold me back from my potential.”
Mara is a truly unstoppable force! She started her journey with KFC on her 16th birthday as a team member and has since
risen to the role of shift supervisor. Mara’s leadership and dedication to excellence have earned her our scholarship grants for the last three consecutive years.
With this year’s $20,000 scholarship, Mara is all set to fund her last year of schooling at Northern Michigan University, where she’s pursuing an associate’s degree in radiology. After graduation, Mara is excited to start her career as an x-ray technician and hopes to continue her education to become a computer tomography or interventional radiology technician.
Trinity Jenson
Shift supervisor with The Chick, Inc., Lebanon, OR
“I can go to college financially stress-free, focus solely on my studies, and graduate with two bachelor’s degrees.”
Trinity is a talented senior at Oregon State University double majoring in accounting and business information systems. She has been working at KFC since her sophomore year of high school and received a KFC Foundation Scholarship last year.
Throughout her college journey, Trinity has excelled academically and been an asset to the local community, volunteering with the annual Cheadle Lake Fun Run/Walk. Trinity’s decision to major in accounting was inspired by her promotion to assistant manager, where she discovered her passion for money management. After graduation, she aims to work as an accounting manager and teach accounting courses at a high school or university.
Marleesa May
Team member with D.E. Foods, West Hartford, CT
“Life is too short to not chase the things I want for my future.”
Marleesa is a resilient young woman who refused to let a devasting house fire define her future. After losing everything and using her college savings to help her family, Marleesa remained determined to achieve her dreams. She enrolled in Johnson & Wales University to study psychology the following fall and shortly after started working at KFC, where she quickly became an integral part of the team.
Marleesa’s commitment to education and unwavering perseverance in the face of adversity serve as a shining example to us all.
Wilfred Nazario
Team member with Houston Enterprises, Chicopee, MA
“I will go off to chase my dreams.”
Wilfred is a hardworking and determined young man who immigrated to the mainland from Puerto Rico for a brighter future. He started working part-time at KFC while in high school to help support his mom and younger brother.
Wilfred is excited to embark on his college career at Elms College this fall, where he’ll pursue a bachelor’s in nursing.
Brandon Partida
Team member with PAK Foods, Sun City, AZ
“Hard work and dedication pay off and my dreams are within reach.”
Brandon is a proud first-generation Mexican
college. Despite the pressures to follow traditional Indian values from her family, including an arranged marriage and becoming a stay-athome wife, Esha wanted a more independent life and started working at KFC to finance her dream of becoming a medical doctor.
She will attend the University of California at Irvine this fall to study biology. Esha hopes to inspire other minority girls and become a role model for those who dare to dream big.
Kaden Thomas
Team member with KBP Foods, Alma, AR “This award helps me pursue what makes me the happiest.”
Jaden, a student at Baldwin Wallace University, is determined to “break the cycle” and become the first in their family to graduate college. While in high school, Jaden worked at KFC and now looks forward to returning during holiday breaks.
Jaden has been a recipient of a KFC Foundation Scholarship for the past three years, and this year’s $20,000 award will bring them closer to fulfilling their dream of becoming a music therapist and aiding those in need.
Paige Trosper
Shift supervisor with Second Gen, Inc., Demotte, IN
“I hope to help my students find ways to achieve their dreams and push away worries.”
American with a natural inclination for entrepreneurship. Since childhood, Brandon has been developing new product and service ideas with the dream of turning them into successful ventures. However, he knew that pursuing his dream would require significant financial resources, which his family did not have.
Determined to save for college, Brandon joined KFC as a team member during his senior year in high school. He will be attending Arizona State University in the fall to pursue a bachelor’s in business management. With his education, Brandon hopes to become a successful entrepreneur who positively impacts the Mexican American community through his business ventures.
Esha Patel
Team member with AJS Associates, White House, TN
“I am the start of the first generation of girls to go to college in my family.”
Esha is an activist determined to break cultural expectations and stereotypes as she becomes the first woman in her family to attend
Kaden is a passionate theatre enthusiast who dreams of being an actor. To fund his aspirations, Kaden started working at KFC before his senior year of high school.
His hard work and dedication have certainly paid off! This fall, he’ll attend the University of the Ozarks to pursue a degree in theatre and plans to continue working part-time at a local KFC near his school.
Jaden Thompson
Team member with KBP Foods, Cincinnati, OH
“I want to show my family and future generations that it’s possible and set them up for success, too.”
Paige is a driven young woman who’s passionate about making a positive impact on her community through education. After facing financial challenges growing up, Paige began working at KFC during high school to help support her family and cover essential expenses.
In the five years since, Paige has been promoted to shift supervisor and has received our scholarship for four consecutive years. After graduating from Valparaiso University next year, Paige hopes to inspire and mentor future generations by teaching at a smalltown school.
Valerie Vasquez
Shift supervisor with RBD, Perris, CA
“My father’s loss taught me to cherish every moment and to work extremely hard toward my goals since tomorrow is never promised.”
Valerie is a first-year University of California at Riverside student double majoring in education and liberal studies. Valerie has always had a passion for helping others and
knew from a young age that she wanted to pursue a career as an elementary teacher. However, after losing her father in 2020, she knew finding the funds to support her dream would be a challenge.
Valerie began working at KFC during her senior year in high school and has been promoted to shift supervisor thanks to her hard work and dedication.
None of this would be possible without your continued support and generosity. Every dollar you raise and donate to the KFC Foundation is truly life-changing.
Round Up is a huge unlock to growing the impact of your KFC Foundation. In 2022, your teams raised $3 million for the KFC Foundation. These donations doubled our operating budget and doubled the possibilities for how we could invest in the lives of restaurant employees, their families and their communities.
With 1,100 restaurants participating in the Round Up Flex pilot and the other 2,700 restaurants raising money through two 5-week campaigns, we’re on track to raise $5 million through Round Up in 2023.
And of course, you — our participating franchisees — continue your generosity by donating a portion of Secret Recipe Fries sales to the KFC Foundation. Because of your support:
• We granted $500,000 in wishes to 50 non-profit organizations making an invaluable difference in their communities in 2022 — and we’re granting another $500,000 in wishes this fall.
• We partnered with Crisis Text Line to provide text-based mental health support for restaurant employees, 24/7.
• We awarded $2.5 million in scholarships
in 2023 — our biggest year yet — to help your employees attend the trade school, college and graduate school of their choice. And for the first time ever, we awarded a $20,000 scholarship to 11 deserving KFC restaurant employees.
And that is just the tip of the iceberg. We’re helping hundreds of families make it through times of crisis, empowering restaurant employees to earn their GED, inspiring positive financial habits, and more.
The best part? There’s much more to come. Thank you for investing in the KFC Foundation. Thank you for investing in the lives and communities of thousands of KFC restaurant employees. Thank you for supporting your KFC Foundation.
Read more about the incredible impact we’re creating together in our 2022 Annual Report. n
This article is presented in tribute to Darlene Pfeiffer who passed away earlier this year. She was a KFC franchisee for 52 years! Additionally, Darlene was the first editor and founder of AKFCF Quarterly. She served the Association and her fellow franchisees in many capacities over the years, on the KFC National Franchisee Advisory Council, National Advertising Committee, NCAC, Northeast KFC Franchisee board and president, KFC Foundation, AKFCF President (twice) and she was a mother, spouse, friend, and associate.
During her lengthy career as a franchisee and AKFCF volunteer, Darlene was the recipient of multiple awards, including the AKFCF Shining Star Award (twice), the NCAC Hard Way Award, the AKFCF President’s Award, and the AKFCF Lifetime Achievement Award.
Darlene, being the ever-evolving, leader and giver, pivoted in her later years as an extraordinary giver in the local Florida and upper New York State communities. Her continued work and contributions led to hundreds of scholarships being awarded and to the Darlene L. Pfeiffer Center for Entrepreneurial Studies building and study program on the SUNY Ulster Campus.
Darlene was my friend and one of my favorite mentors for over 40 years. Her words and advice still live in my memory and in my thoughts and actions. I always thought of Darlene as the “Princess of the AKFCF.” She served KFC franchisees and the KFC Brand with fabulous grace, class, and tenacity! When Darlene entered a room, she did not just walk into that room; she made an entrance! Darlene was clever, timely, intelligent, and would never be intimidated by others who “acted” as if they were better than her. Darlene would allow those who attempted to intimidate her to make their point. Then, she would draw them out, and strike back with a smile still on her face
Darlene was the perfect example of a servant-based leader. This lady set an infectious example. She believed and lived the idea of “Giving is Living, and Living is Giving” more than any other person I have known in my life. As Darlene would say, “Well done is better than well said!” In all the years I worked with her, I saw a lot of the “well done!”
In Darlene’s honor, we’ve asked several current and former members of AKFCF’s leadership to share their thoughts, feelings, and remembrances of the Princess of the AKFCF:
Dick Cahill, AKFCF Past President, former NCAC Vice-Chair, Past Southwest KFCFA President
Darlene was a great leader! I remember a time that involved her that was funny. We were at a NAC (National Advertising Committee)
meeting in Florida. We were having a pre-dinner cocktail gathering at the hotel. Darlene always had her little dog “Lolly” with her at meetings, dinner, etc., and she carried the dog in a Louis Vuitton dog carrier. This particular evening, she placed her carrier, with dog inside, on a lounge chair while she was visiting with other attendees. Dan Edelman, president and CEO of Edelman Public Relations, our KFC PR firm at the time, was in attendance and after a while decided to sit down. Evidently, he didn’t look where he was sitting and sat down on the dog carrier, the dog starting whining and Darlene came running and she was having a fit. The dog was fine, but Darlene wasn’t. Everyone had a laugh about it later.
Fred Bauer, AKFCF Past President, former NFAC Chair, former RSCS KFC Director, Past Great Lakes KFCFA President
One of my first personal interactions with Darlene was at a meeting or at Convention in 1996. There have been so many meetings over the years, it’s hard to remember where. She and David Neal were at the meeting representing the AKFCF. They approached me to ask if I would consider going through the chairs of the AKFCF. Darlene was always trying to recruit and promote franchisees to contribute more to the system. I accepted and Darlene started to help me move through that wonderful experience.
After that, I got to be a part of many meetings where Darlene showed her leadership and commitment to the KFC franchisees and the entire KFC system. She was tireless and always prepared. She was a great person and professional leader.
David Neal, AKFCF Past President, former KFC Purchasing Co-op Director, Chair, Past Southeast KFCFA President
Darlene’s voice and leadership skills represented the heart and soul of Colonel Sanders and every KFC franchisee who cherished his
legacy. Her focus was not about winning and losing, but always about family, care, and a strong business partnership.
Without exception, she was always focused on the fair and balanced interests of both franchisees and franchisors, including the AKFCF, Purchasing Co-op, and KFC’s NFAC.
Darlene simply wanted to have a civil conversation about how to strengthen our relationship for the benefit KFC’s franchisees, our franchisor, and our customers. Our current 1976 5P Franchise Agreement confirms this fair and balanced, “Hard Way” partnership that we all enjoy today, “don’t you see!”
As a woman ahead of the times, Darlene confirmed in her autobiography how she jump-started her success as a beautiful young woman who had no limitations, and anything could be accomplished. At the end of the day when debates were settled, tough work accomplished, franchisees and franchisors would stand together and cheer the achievements thanks to Darlene’s voice and leadership!
Darlene loved every franchisee, including Bob Bagshaw and Keith Chambers. Any of us could write a book about Darlene Pfeifer. We all miss Darlene and especially her voice.
Kevin Schlutz, AKFCF Past President, former NCAC and NFAC Director, Past Upper Midwest KFCFA President, AKFCF Secretary
Darlene was a personal mentor to me and was the one who asked me to go through the chairs of the Association. That was over 25 years ago, and I am still involved. I will
forever miss the tenacity that she brought to everything she did. No one embodied the KFC Family culture passed down to us by the Colonel any more than Darlene. Her involvement in everything from the NE Region, the AKFCF, the Quarterly magazine, Convention, picking Andy Selden as our counsel, the lawsuit, the Foundation. The list could go on and on and still wouldn’t really tell you just how integral she was to the success of each one of those things. She was a wonderful example for all of us and will deeply be missed.
This past January, NDA completed its 35th year of providing KFC franchisees business services in the areas of:
Business consultation rounds out the general categories above. We at NDA want to extend a big THANK YOU for your support over these years with the hope and expectation of continuing this long-term relationship with the new generations of KFC franchisees going forward.
Each of our client’s goals and objectives are unique to their particular circumstances and NDA recognizes and respects the personal nature of each assignment. So remember…..
Paul DeLisio, Darlene’s Soulmate/ “Bestest” of Best Friends
When Darlene, as my longtime client and friend, brought me into the incredible KFC franchise family, we became partners and lovers 25 years ago and I learned first-hand about the brilliant entrepreneurs and vendors that made up the most efficient and unusually successful business model I have ever seen. Coupled with the KFC Family love that made it all work, I thank you, Darlene, and all your KFC family members who made it so.
One event that forever has affected me occurred at the 2004 Convention in New Orleans. Darlene had become familiar through
her volunteerism of the Colonel’s Scholars, which gave $20,000 scholarships annually throughout the country. She had attended a couple of the final national selections for the award recipients by region. She developed the idea that it might even be even better if the Foundation would put up $10,000 annually to match any franchisee, vendor, or corporate donor who would do the same and assure that the winner would come from their territory to celebrate while increasing the number of scholarships dramatically. At this meeting, she had secured acceptance of the idea from the Foundation.
Now if she could just encourage and con-
vince others to join in for this effort. She was granted 10 minutes on the main platform the second day, just before the final speaker of the day, Mitch Albom, author of “Tuesdays with Morrie.” Shortly before she was to make her presentation, the program director asked if she would let Mitch go first as he had a plane to catch. She agreed and Mitch made a brilliant and emotional presentation about the essence of his book and the incredible human being that Morrie, an elderly dying professor, was and the universal message of his life. He ended his speech saying the final week of Morrie’s life he visited him on their traditional Tuesday, mincing no words as was the rule. He asked, “How does it feel to be dying?” To which Morrie answered, “I’m not dying as long as I’m giving; I’m living.” Mitch ended to a thunderous applause without a dry eye in the auditorium.
As Darlene got up to leave for the stage, I mentioned to her that she could raise $1,000,000 in scholarships that day. She got it immediately! Darlene made her major presentation to all attendees, franchisees, vendors and corporate alike, ending with the emotional statement that giving is living and giving is living eternally.
Keith Cole, AKFCF Past President, Northeast KFCFA President
Each and every time I saw Darlene, she would thank me for my service to the Northeast and ask me about my daughter Isabella’s health. But my first memories of Darlene are the ones that stick with me. I remember seeing a very classy and elegant looking redhead walk into a Northeast function and thinking to myself, “There is someone who knows how to make an entrance.” When the music began, she was the first one to the dance floor.
The next day, I saw her in meetings and witnessed her tenacity and passion for protecting franchisee rights and making our brand the best it could be. There was no lon-
“The people you give to now will outlive you, and however you give will influence their lives. I believe when we give, we live more fully. When we give, we live completely. When we give, we live more joyously. And when we give, we live eternally.”
–Darlene Pfeiffer
ger music playing and the smile had turned to a look of determination. That is when I witnessed the formidable force she could be. I couldn’t wait to speak to her.
I got my chance that night at a cocktail party when I introduced myself. She knew my partner and we made small talk. Then she took my hand and began to tell me I was an old soul and would do very well with our brand and Association as long as I remained committed. I left that event feeling like I had been knighted by the Queen.
Andrew Selden, former AKFCF General Counsel
When I first began working for AKFCF as Legal Counsel, I was taken by surprise at the attitude that permeated the organization — a commitment to service and sacrifice, to the well-being of the community over self-interest. That is rare in American business. There was not just a clear sense of right and wrong, but a firm belief in standing up and doing what was right for the benefit of the whole
KFC Family. And I soon learned that KFC people used “family” not as a metaphor but as a serious reflection of how they related to one another.
Many AKFCF leaders reflected these values. One thinks of people like Bob Peck, Bob Metzendorf, John R. Neal, Bob Schlutz, and many others, but standing out even in that
group was Darlene Pfeiffer. Darlene “got it.” She believed strongly in KFC people standing up for each other, for their common good. She was bright, fun, determined, unflappable, and resolute. She was a great leader. People trusted her. I welcomed the opportunities I had to work with her on one project or another, the most important of which was standing
up to outside corporate power to protect and preserve the KFC franchisees’ equity in their businesses. That foundation is Darlene’s legacy to the KFC Family.
Dr. Alan Roberts, SUNY Ulster Past President
Words cannot say enough about what Darlene has provided SUNY Ulster students. She was not only the college’s largest doner, but provided us with wisdom, guidance, motivation and mentorship, while holding us accountable for student success. Darlene would tell me she got a lot of inspiration from her religious beliefs and spiritual connection. She was all about giving people confidence and believed that everyone has inside of them a golden nugget and that all we need to do was to mine it to change lives.
Changing lives is exactly what she did. She provided support and innovation along with her gifts. Two of the most creative and powerful programs that she supported and gave
vision to were the New Start for Women and the President’s Challenge.
I remember the conversation when Darlene called me to say “There’s something I want to talk with you about. Let’s have lunch.” When we met, she said, “I want to help women. I know there are a lot of single moms who are working two jobs, trying to raise their families and really struggling. What can we do to change this,” she asked? Well, after a glass of chardonnay, we had jotted four to six pages of ideas and she said, “I’m willing to help out here.” Fast forward to today, the New Start for Women program has been chosen by a local foundation to receive over $2 million dollars, and the program has helped numerous local women achieve a college education.
On June 24, 2021, she presented a $1,000,000 check as an endowment to support the President’s Challenge Scholarship program. This is an innovative program designed to assist first-generation, college-bound high school students living in Ulster County with attending
college. Students are identified in the eighth grade by sponsoring school districts to receive guidance counseling and mentoring through the completion of high school and are awarded a two-year tuition-free college education. To date, there are more than 300 students in the program.
Darlene was a true life-changer and we are all better for her vision, passion, generosity and love. We miss her greatly, but her legacy will live on.
In 2008, Darlene awarded me a crystal Eagle and a card with a handwritten note that epitomized her belief of the Pygmalion Syndrome: “Keith, if a bird believes it’s an Eagle long enough, it will eventually end up soaring like an Eagle! Teach by believing in others what they CAN become!”
Darlene used the word fabulous often, as both an adjective and adverb! She did not believe in plain. She loved bright, loving, challenging, fabulous people! And so, to Darlene, a strong woman who, like an Eagle against the strong winds, soared ... and soars with each one of us! Let’s all give to others, soar and be fabulous! n
Editor’s note: Darlene’s book “Dream Big, Add Moxie!” came out earlier this year and can be ordered at dreambigaddmoxie.com. To honor Darlene’s spirit of generous giving, please consider making a contribution to the following organizations:
• KFC Foundation, kfcfoundation.org
• Ulster Community College Foundation, Inc., sunyulster.edu/foundation
• Community Foundations of the Hudson Valley, communityfoundationshv.org
It is comparatively easy to prosper by trickery, the violation of confidence, oppression of the weak … sharp practices, cutting corners — all of those methods that we are so prone to palliate and do as “business shrewdness.”
It is difficult to prosper by the keeping of promises, the deliverance of value in goods, in services and in deeds — and in the meeting of so-called “shrewdness” with sound merit and good ethics.
The easy way is efficacious and speedy — the hard way arduous and long. But, as the clock ticks, the easy way becomes harder and the hard way becomes easier.
And as the calendar records the years, it becomes increasingly evident that the easy way rests haphazardly upon shifting sands, whereas the hard way builds solidly a foundation of confidence that cannot be swept away.
*Dictionary: Present participle and verbal noun. To fashion or frame according to a systematic plan or by a definite process, to create, to BUILD reputation.
Reprinted by permission of Colonel Sanders, November 1964.
Copyrighted by Harland Sanders, 1973.
Be sure to check out our new website at memberprograms.rscs.com to learn how you can save THOUSANDS on services for your restaurants.
Our goal at Restaurant Supply Chain Solutions is to provide a competitive advantage to our members. Through RSCS Member Programs, we offer discounts on products and services used to run your business, and we don’t stop at waste & recycling, pest control, and CO2 services. We have new programs with Armor Security and Paycor Payroll & HR Services, as well as renegotiated terms and pricing with Restaurant Technologies for your oil management needs.
Member Programs Spotlight: Armor Security
Armor Security & Parapet Studios are excited to announce a new integration that links Armor’s CCTV solutions to Parapet’s exception reports!
monitoring & software integrations, their customer service is exceptional. You will not find a better customer experience in the security industry than Armor.
Exceptional customer service means a lot to us, but here are a few examples:
• Month-to-month agreements with guaranteed pricing on monitoring for three years to ensure we continue earning your partnership.
• Direct communication with your dedicated project managers. No call centers, no unanswered emails. Real people who resolve your issues.
• Competitive pricing to provide greater coverage & help you protect your locations from theft, slip falls, etc.
• Live ongoing training sessions to ensure your management teams continue to maximize the capabilities of your systems.
• Health monitoring & enterprise management are always included.
Contact Michael Megraw at Michael@armor.security or 913.201.4959 to learn more about the significant savings opportunities for KFC franchisees. Visit memberprograms.rscs.com for more info and testimonials, or armor.security/rscs to receive a quote.
1. When Parapet sends you a notification for a suspicious transaction, there will be a link to your Armor camera system that will take you immediately to the transaction in question.
2. No more logging onto the system, looking for the correct POS, scrubbing through footage, etc. With a single click, you’re reviewing the footage you need.
3. This allows you to reduce the amount of time reviewing footage & the amount of theft/loss your company experiences.
Not familiar with Armor Security? Armor Security has been partnering with Yum! Brands franchisees since 2006, and it was a natural step to welcome them into the RSCS Member Programs family. Armor is a trusted security company offering comprehensive services such as installations, maintenance, and monitoring across all 50 states and Puerto Rico.
In addition to offering CCTV, Alarm, Access Control systems, Fire
In addition to Armor, we have renegotiated our rates with UPS, saving you up to 80 percent on NDA letters and 25 percent on ground shipping, so double check to be sure your account is linked to our RSCS rates by emailing us at memberprograms@rscs.com.
Other Member Programs include:
• Cleaning Services with Cintas & UniFirst
• Energy Management with Choice Energy
• In-Store Music with Mood Media
• Slip Resistant Shoe Payroll Deduction Programs:
• Shoes for Crews
• Skechers
• SR Max
• Careismatic
You can access our complete list of programs at memberprograms. rscs.com. Utilizing our Member Programs Directory, you will find comprehensive details about each program we offer, including available discounts and contact information. This ensures that you can take advantage of the discounted rates provided by RSCS. We
recommend consulting your designated account manager (listed on our Vendor Contacts page) to ensure you receive the most favorable rates through RSCS.
Employee Perks: Save on Vehicles, Electronics, Vacations, and MORE!
To help with retention, we proudly offer our KFC Employee Perks program through Abenity. Team Members can save on a wide range of products and services from popular retailers, rental cars, movie tickets, oil changes, hotel rooms, theme parks, electronics, mortgage services, and so much more! Visit memberprograms.rscs.com > Employee Perks to download our latest flyers.
Your KFC Foundation is committed to supporting and empowering KFC restaurant employees and their communities through education accessibility, financial & crisis assistance, and community giving. Here, I want to focus on the education programs we offer.
We know that education can unlock brighter futures, increase self-confidence, create stronger communities and more — and so we invest in it for your restaurant employees. In fact, 66 percent of the KFC Foundation’s budget went toward education programs in 2022! Investing in your employees’ education — and promoting those opportunities — has business implications for you as well.
Employees want to work for a company that invests in their education. When the KFC Foundation announced its partnership with Western Governors University in January of this year to offer 100-percent tuition coverage for KFC restaurant employees, it was evident that opportunities like this aid in your recruiting efforts. The “Earn your degree with KFC” drive-thru window cling garnered more than 5,000 scans.
Our team received phone calls, emails, and social media messages from individuals inquiring if their local KFC restaurant was eligible for the KFC Foundation’s tuition-free college initiative — because if it was a participating restaurant, they were going to apply for a job so they could take advantage of this opportunity. KFC’s social media employment marketing ads focused on the new tuition-free college offering exclusively throughout the month of February and provided amazing results. It’s clear that job seekers are looking for more than a paycheck — and education assistance is a desirable perk to job seekers.
Employees will continue to work for a company that invests in their education. An EdAssist study that surveyed more than 22,000 participants in tuition assistance programs reports similarly promising findings:
• 84 percent of respondents said access to a tuition assistance program was important in their decision to join their company.
• 8 out of 10 respondents said that tuition assistance makes them more likely to stay with their employer, regardless of any policy requiring them to stay.
• 85 percent of participants maintain the program has made them a more effective employee.
Employees will become life-long champions for companies that invest in their education. According to a Bright Horizons 2019 Worker Learning Index Report, 88 percent of Gen Z workers say they are more likely to recommend their employer because of its
education benefits. None of this can happen if your employees don’t know the education opportunities available to them. Consider this…
How can you promote the KFC Foundation programs in your recruiting efforts?
c Job fairs
c Local high schools and colleges
c Community centers
c Social media/digital marketing
Write in your ideas:
How can you promote the KFC Foundation programs to your new hires?
c Incorporate into onboarding
c Introduce them to the KFC Foundation Ambassador in their restaurant
c Give them a KFC Foundation one-sheeter in their onboarding packet
Write in your ideas:
How can you promote the KFC Foundation programs to your teams on a regular basis?
c Company newsletters
c Make KFC Foundation programs a business priority
c Crew app
Write in your ideas:
If you’re looking for items to help showcase the KFC Foundation’s programs and spread awareness, head to the The Market Place and search “Foundation”!
Employees are eligible for ALL the KFC Foundation’s programs starting day one of employment.
1. Every student is paired with a personal GED Advisor to help them develop a study plan, serve as an accountability partner and be their cheerleader.
2. This program is offered in English and Spanish.
3. Whenever one of your employees earns their GED through the KFC Foundation, we send a GED graduation recognition box full of goodies to the restaurant to host a celebration for the new grad! Students also receive gift cards and encouraging notes every time they pass a subject exam.
4. This program is non-competitive, meaning every eligible employee who applies is enrolled.
1. Application period is once per year — typically from February 1-28.
2. Applicants could receive a $20,000, $5,000 or $2,500 scholarship to use at the accredited college, trade school or graduate school of their choice.
3. KFC Foundation GED graduates are guaranteed a $5,000 or $2,500 scholarship, given they complete the application and meet minimum eligibility requirements.
4. This program is competitive, meaning not every employee that applies will be selected to receive a scholarship. Recipients are selected based on their essay.
1. The KFC Foundation’s tuition coverage partner is WGU, is an accredited online university with flexible, competency-based courses in four different degree programs: Business, IT, Teaching and Healthcare
2. Admissions are rolling. Employees can apply and get started at any time of the year; no waiting for the spring or fall semester to begin!
3. For employees who need a little extra preparation before diving into college courses, WGU Academy is an alternative launching pad for eventual success at WGU. The Academy program is designed to strengthen students’ confidence, develop their learning skills, and establish a foundation for them to thrive and graduate from WGU.
4. This program is non-competitive, meaning every eligible employee who applies and completes all required steps can receive 100-percent tuition coverage.
1. This new personal development program helps KFC restaurant employees unlock their potential and kickstart their journey to becoming their best self.
2. Participating in this program will help your employees understand what skills they have, open their eyes to where they could go in their career, and strengthen their abilities so they can thrive at work and in their personal life — all by watching 5-minute videos on their phone.
3. Participants have access to individualized live coaching and support — in English and Spanish — when they have questions, meet roadblocks or just want someone to talk to.
4. This program is non-competitive, meaning every eligible employee who applies is enrolled.
“This program really helped me build my skills to coach my team so they’re more effective. This program was a 10 out of 10!” –Mississippi, KFC shift supervisor More information and application links available at kfcfoundation.org.
*To be eligible for the KFC Foundation programs, employees must work at a restaurant participating in the KFC Foundation Annual Donation Program.
By Austin Felker, Finance Committee Chair
April was the start of a new term for the AKFCF and its various committees. Through the leadership of AKFCF President, Justin Stewart, in conjunction with Past President, Keith Cole, the Association is well-positioned for another productive and exciting year. I am grateful to the AKFCF and the Executive Committee for the opportunity to serve as the Finance Committee Chair.
Entering any new position can be a steep learning curve and getting up to speed requires support. Fortunately, Roger Sparks, AKFCF Treasurer, has been a tremendous resource as I’ve moved into the new role. His extensive knowledge from years of serving on Association committees has been critical to further understanding the
Finance Committee and its functions. I truly appreciate and value Roger’s mentorship.
The Finance Committee is made up of a team of talented franchisees with diverse backgrounds in finance and accounting. The committee members include Roger Sparks, Raziel Valiente, Jeremy Dimick, Dave Evans, Eric Cromwell, and me. Additionally, Michelle Hunt and Kelly Rodenberg each provide us with valuable support. I’m proud to serve on a committee alongside such an impressive and experienced group of people. I look forward to partnering with the members to advance the mission and responsibilities of the committee.
The core mission of the committee is to work with and support the AKFCF Trea-
surer in developing annual budgets and to make recommendations to the Executive Committee on fiscal policy. The committee represents the franchisees in an oversight capacity for all budgetary matters and provides transparency into the financial operations of the Association. Further, the committee acts as a third party by taking an impartial view of the budget in how AKFCF policy affects the overall financial health of the Association. The committee also may take on special projects as the Executive Committee or President of the AKFCF might request from time to time regarding the AKFCF budget. Overall, as a committee, it is our fiduciary duty to ensure we protect the collective monies of the Association that support and advance our franchisee membership.
The committee reviews all monthly invoices, bank statements, and regular budgetary updates. We conduct scheduled conference calls prior to every AKFCF Board meeting and on an “as needed” basis. The committee oversees all aspects of the Association’s financial activities related to income and expenses. Some of the committee’s primary oversight focuses include reviewing items such as the national support dues, taxes, CPA audited financials, insurance, legal fees, government affairs, spring/ fall board meetings, Annual Convention, AKFCF Quarterly magazine, leadership development, committee support, and all other associated operating financials. Each line item of the budget is individually and carefully examined by the committee. The Finance Committee is pleased to report the AKFCF remains in a healthy financial position, and we are diligently dedicated to continuing to grow upon that legacy. I look forward to another great year for the AKFCF!
n
I’m proud to serve on a committee alongside such an impressive and experienced group of people. I look forward to partnering with the members to advance the mission and responsibilities of the committee.
Our mission is to provide multiple channels of relevant, two-way information sharing to unite and advance the interests of its members.
Communications are critical in a fastpaced and changing business environment. There are so many sources of information today that I can spend an entire morning just reading all the posts and almost everyone has their preferences from where they receive news. Some of us remember the days of newspapers, magazines, three network TV channels, and hard-wired telephones. Today, those choices have exploded exponentially; it would be difficult to find any two people who get their news the same way.
Your Communications Committee, made up of the Regional Secretaries and AKFCF staff, are always looking for new and more effective ways to communicate while maintaining the standard channels that some still use. During and after Convention this year, the Partnership Survey was issued to get feedback directly from operators. Noah Hommerding and the Partnership Committee does this survey annually to show areas of concern and to focus our response. Please always take that opportunity to share your opinions in the survey.
A new idea from the AKFCF Board is to invite new franchisees to one of our AKFCF Board meetings to learn our history and to better understand AKFCF. Past President Bryan Robinson is working to get this initiative started. Additionally, the AKFCF Facebook private group has allowed us a quick and effective way to reach hundreds of our members and ARLs with breaking news, interesting articles, and important updates. Having Jason Kunz at Speaking Socially as a partner maintaining that private group and adding content has revitalized the page. We have over 400 members. If you use Facebook,
you should go to the AKFCF Facebook page and ask to join, but please answer all the questions or your request could be declined.
Speaking Socially maintaining our AKFCF website has been a tremendous help in providing more up-to-date information to our members. Some of the regions also are using Jason’s company to maintain their websites as part of the AKFCF site. Having one less place to go is a benefit for all of us, or you can link from there to the regional sites that aren’t included with the AKFCF site. Either way, it’s the one place you can start for anything to do with AKFCF.
Another thing that has contributed to the efficiency of our communications is having our General Counsel, Ron Gardner, also act as the General Counsel for the NCAC. Having this synergy has helped with getting out items of importance. If Ron has a message for everyone, it will go on the Facebook page with a text notification, in an email from the AKFCF, in emails from your Regional Secretaries, and in an email from the NCAC, all within 24 hours. I know you may think this is overkill, but in this crazy world, sometimes it takes that many notifications for a message to be seen.
Another big improvement that our committee can take no credit for is the KFCStrong Facebook private group, but it has been a wonderful way for our restaurant teams to express their appreciation, tell everyone of their accomplishments, recognize top performers, ask questions or give best practices, and just feel the togetherness of being a part of this global KFC family. For some of us, the goal is to “like” and encourage as many as possible to give that positive feedback for their achievements. This was so vitally important during the pandemic and continues to be an ever-important way to foster the culture of family in our restaurants.
The Communications Committee has been collaborating to remind everyone of the AKFCF Sponsored Franchise Business Academy webinars that happen each month. We also are excited that our CARIBLA partners can access those workshops through the AKFCF website. Another important channel is all the communications coming from the KFC Foundation. Emma, Debbie, and Liz have certainly taken their activities to a higher level, and we work with them as appropriate to communicate their activities.
Each year after our Convention, a survey is sent out asking all attendees to give their opinions. The results are used by the incoming President and Convention Committee to make changes to the following year’s agenda. Please always take advantage of the survey to share your opinion.
Lastly, use your Regional Secretaries as a resource. They are the regional point-person who can answer questions or get you to the right person to answer your questions. That’s what we’re here for. Thanks for continuing to read and act from the communications channels of our great KFC Family. Please send any suggestions to kevin@centraliowakfc.com. n
The Communications committee has been collaborating to remind everyone of the AKFCF Sponsored Franchise Business Academy webinars that happen each month.
“Coming together is a beginning; keeping together is progress; working together is success.” –Henry
Ford
For the first time ever, the Southeast will host five of the six regional associations in a combined Super Regional Membership Meeting and Trade Show. Some of us have dubbed the meeting the “Super Duper Regional!” The meeting will include the Southeast, Northeast, Greater Midwest, Southwest, and Northwest Regions. It will be held on Oct. 22-25, 2023, at the Loews in Atlanta, Georgia.
Work to plan this first-of-its-kind meeting has been underway since the spring of 2022. A steering committee comprised of representatives of each region has been working steadily to create the vision, agenda, budget, and more. A big thank you is to Kevin Schlutz, Michelle Hunt, Nanette Walker, Inman Hodges, Carl Coulter, Ray Aley, Tony Cameron, Kris Stuebner,
Shannon Prendiville, and Ryan Androes for all their hard work and commitment to this project. Each of these volunteers has taken time out of their busy schedules to ensure that we produce the best possible meeting this fall. We are all focused on maximizing the unique opportunities afforded to us by coming together. This meeting will be jam-packed with both business and fun. So, get your mind right to work hard and play hard! Here is a sneak peek of coming features of the Super Regional:
• A Golf Event to benefit the KFC Foundation on Sunday morning (10/22) at the Lakemont Course at Stone Mountain. This event is open to franchisees and vendors.
• A Welcome Reception on Sunday evening (10/22) to kickstart the comradery.
• Separate regional Business Meetings on Monday morning (10/23)
• Combined General Session Meeting on
Monday mid-morning and afternoon (10/23) to include NCAC, RSCS, Government Affairs, AKFCF, and Legal Updates.
• Three opportunities to visit the vendor exhibits: Monday (10/23) noon-2 p.m., and 4-6 p.m., and Tuesday (10/24) noon2 p.m.
• Workshops on Tuesday morning (10/24) customized for two, separate audiences — franchisees and ARLs. Plan to bring your ARLs for their own customized content!
• Roundtables on Tuesday afternoon (10/24) for best practice sharing.
• A Celebration and Awards Dinner on Tuesday evening (10/24) to show our appreciation to our vendors and sponsors featuring entertainment, The Kinchafoonee Cowboys!
• A Door Prize Breakfast on Wednesday morning (10/25) just for fun!
• Presentations from the KFC Leadership Team on Wednesday morning (10/25) to get updates on the business and brand direction.
By the time you read this article, registration will be open and well under way. So please reach out to your regional secretaries for the link to sign up and join us!
Since their inception, the associations have always been about connecting the franchisees and their organizations to benefit everyone, each company, and the entire KFC brand. Through learning opportunities, best practice sharing, and leadership development, we all become stronger together. This Super Regional meeting is the next generation of that effort that began in the 1960s. I am truly excited for this fall and the future!
Note: The 2024 meeting is already booked for Sept. 9 – Oct. 2 at the Marriott Sawgrass in Ponte Vedra, Florida. Mark your calendars! n
Since their inception, the associations have always been about connecting the franchisees and their organizations to benefit everyone, each company, and the entire KFC brand. Through learning opportunities, best practice sharing, and leadership development, we all become stronger together.
By Kelly Rodenberg
The AKFCF Annual Convention is the Association’s most prized asset and is very close to my heart as it is my primary job responsibility. Each year, we want to provide the best-in-class meeting experience for the franchisees, vendors, and family members.
On January 13 of this year, I was charged by the Executive Committee to send out requests for proposals (RFPs) to seven production companies to attend and then bid on our Convention production pieces. Since production is the largest expense associated with our Convention, we began the RFP process to make sure that our current production company, Booth Production Group’s costs were in line with other companies in the industry. Out of seven companies, four attended the Convention in Austin. After the Convention, three of them presented their proposals to us. From there, we narrowed it down to two — BPG and Clarity Experiences. Both companies were then given specific information on Justin Stewart’s vision for next year’s Convention in Las Vegas and a set budget with which to work. Both companies came back with very different and unique presentations.
It was an extremely hard decision to make, but Clarity came out on top. The AKFCF has worked with BPG for nine years and built a loyal partnership. We truly appreciate and value what Chip Booth and his team have done for us and our Convention over the years. We felt BPG was a comfortable, reliable, and safe choice; however, the excite-
ment and new ideas that Clarity brought to the table energized and inspired us. And if there was a time to make a change, it was now, with Justin at the helm.
Clarity Experiences began in 2007 and specializes in producing meetings of our size. Their culture is based around family, and we felt that from day one of negotiations. They have produced shows in every venue that we have selected for the next five years. They produce 200+ events per year throughout every major city in the United States.
We’ve already held our first planning meeting with the Clarity team in Las Vegas and are excited to start the creative process. I am confident that they will bring our Convention to the next level. The 2024 AKFCF Annual Convention is looking to be like none other! As Justin always says, “BUCKLE UP!”
Stay tuned for more information on the 2024 Annual Convention. Registration will open mid-September. n
We’ve already held our first planning meeting with the Clarity team in Las Vegas and are excited to start the creative process. I am confident that they will bring our Convention to the next level.
By Ron Gardner
Iwant to take time in this space to advise you about some very big agreements that we have reached with KFC in the last few days (I am writing this in early July) that I believe will have a transformational effect on the System going forward. More specifically, I want to talk to you about the finalization of the technology agreements that we have been working on for more than four years, as well as a new-build incentive that the NCAC approved at a recent meeting, which I think is a real game changer for everyone.
As most of you know, the Merit Agreement is very old and expired years ago. We have been limping along ever since, hoping to get to a new agreement with KFCC that will govern the introduction of technology
(as quickly as that is happening nowadays) much more rapidly and efficiently. I am happy to report that we have reached that point. Let me start with a little background.
As I reported at the Convention in February, the first part of the new tech arrangement came in the Advertising and Asset Deferral Agreement (or AADA) we made with KFCC at the end of last year. In that Agreement, they agreed that before any future technology can be introduced into your restaurants, such technology needs to be reviewed by the Technology Committee (and the REC when the expenditure required meets the thresholds we previously agreed upon with respect to REC input). This provision gives the franchisees a permanent seat at the table when it comes to the need and/or desirability of any new technological updates KFCC wants to make in the future. That provision has been incorporated specifically in the two new agreements approved by the NCAC and the AKFCF in the last couple of weeks. I want to turn to those agreements now.
The first agreement is between the organizations (KFCC, NCAC, and AKFCF) and is called the Technology Acceleration Agreement or the TAA. Highlights of the TAA include a phased-in increase in the Merit fee of up to $371 over approximately the next 24 months or so, with the implementation of the new required technology (POS, KDS, Mobile Manager, and Edge Computing System). This amount is consistent with what I reported at Convention and is almost half of where we started in the negotiations. (The CapEx for this equipment is estimated to be around $21,000 — and we are working on a finance program. More on that as it becomes available.) Like the Merit Agreement before it, the TAA makes it very clear that KFCC cannot
profit from any charges made under this Agreement — you pay only for the actual costs KFCC incurs in providing services supporting this technology. The NCAC has significant audit rights to make certain that KFCC is not overcharging for any of the products or services it provides, and KFCC is required to do annual cost reporting to the Technology Committee about the expenditures being made for Help Desk services and the like, as it previously existed in the Merit Agreement.
What is different about this Agreement from the Merit Agreement is that it is perpetual. For both KFCC and the franchisees, these rights continue as long as your franchise agreement is in effect. Finally, if KFCC does not follow the process required under the technology agreements, the AKFCF has enforcement rights to protect the franchisees.
The final leg of our three-legged technology agreement stool is the Restaurant Technology Agreement or the RTA. The RTA is the Agreement you will receive to sign that replaces your former Merit Agreement. You will need to read this Agreement carefully when you receive it, but it governs your access and use of the technology provided by KFCC. Some notable provisions include that KFCC can change or add technology, but like in the TAA, they must consult with the Technology Committee and the REC and cannot make a profit. The one significant way this Agreement is different from any Agreement we have had before is the way it deals with data. Because of the proliferation of privacy laws, and the need for an “owner” of data in the event a customer wants to have its data erased, we felt it important to centralize that data. Accordingly, we have agreed that customer data collected through credit cards belongs to KFCC. All
The one significant way this Agreement is different from any Agreement we have had before is the way it deals with data. … Accordingly, we have agreed that customer data collected through credit cards belongs to KFCC.
other business-related data belongs to you. To protect your data from misuse, we have agreed that KFCC cannot use your data to create store-level P&Ls unless it has a good reason to do so, and it must get the approval of the Brand Committee (a protection similar to what we did in the iLumen agreement). Any other use of the business data must go through the Brand Committee for input and potential withdrawal of consent for such use. Your franchisee leadership thought this was a good compromise to allow KFCC to provide valuable feedback swiftly to vendors for improved services but not use the data in a way that could harm franchisees.
The AADA, the TAA, and the RTA should allow us all to be much more nimble in the development and deployment of technology, while at the same time giving franchisees a valuable and needed seat at the table in making those decisions. I feel like we have landed in a good spot in the development and execution of these agreements.
Another exciting agreement approved recently is a new-build incentive that is far and away the best incentive program I have ever seen KFCC put forward. While there are numerous details, and you will want to review the program carefully, here are a few highlights.
First, for those folks who only decide to build one restaurant and register the site before the end of 2024, you will receive a minimum of $300,000 and up to $400,000 in royalty and ad fund rebates. This floor is new and guarantees that even if the restaurant does not perform as well as people expect, you will get that amount of money as a minimum. The incentive gets even better for those who decide to build more than
one restaurant. While the floor continues to exist at $300,000 per location, there is no cap. Additionally, if you choose to develop two restaurants, for example, the amount of the rebate increases as a percentage of your payments, as well as enjoying a waiver of an Initial Franchise Fee and the payment of up-front cash by KFCC. For average new units with $1.7 million in revenue, this will amount to an incentive of approximately $680,000. The incentive increases even further if someone wants to open more than two restaurants. Again, there are many details, and you will want to pay close attention to the materials coming out from KFCC about this. Still, these numbers are eye-popping and can make a difference when someone is looking at investing in a new location.
And finally, speaking of new locations, KFCC is developing a much smaller footprint type of location that would qualify for these incentives. So, on the one hand, you can receive incentive money — but also must expend significantly less on CapEx up-front for a smaller footprint and a smaller and more efficient building. Make sure you take a look.
It has been a busy last several months for all of us working on your behalf. I hope you are as pleased with the outcome as I am. And, of course, whether you are pleased or not, I am always here to hear any comments or concerns that you have. I hope you are having a great summer! n
This column is for the general information of members of the AKFCF and should not be relied upon as legal advice. Please see your own attorney or professional advisor for questions concerning your franchise agreement. Ronald K. Gardner is General Counsel of both the AKFCF and the NCAC.
