Colonel Sanders Bought KFC For $2 Million Solely To See The New Homeowners Money Out For $285 Million Few Years Later — Why He Then Sued Them

Harland Sanders, aka Colonel Sanders, constructed Kentucky Fried Hen right into a roadside sensation, then offered it in 1964 for simply $2 million, conserving a lifetime wage and the face of the model. The 73-year-old then additionally secured a $40,000 annual stipend, later listed to inflation, and a contract guaranteeing his white-suited likeness in promoting, remodeling him into the world’s most recognizable dwelling fast-food pitchman.

Seven years later, buyers flipped the chain to packaged-foods large Heublein Inc. for $285 million, an eye-popping payday that left the colonel feeling sidelined.

What Occurred: In 1971, WFAA, a Dallas-based tv station, interviewed Colonel Harland Sanders, the place he mirrored on the following sale of KFC for a considerably bigger sum, highlighting his emotions of being “overlooked.”

The 1971 deal capped breakneck progress from about 600 shops on the time of Sanders’ sale to greater than 3,500 worldwide. The octogenarian believed that they had ruined his recipes, blasting cost-cutting that traded his scratch gravy for what he referred to as “wallpaper paste.”

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He even sued KFC’s new homeowners for $122 million over recipe and high quality modifications. The case settled for roughly $1 million and a promise that he may maintain coaching cooks.

What To Know: At this time, Sanders’ likeness fronts a really completely different hen. KFC pushed previous 30,000 eating places in 2024 after opening practically 2,700 models in a single 12 months, giving it the biggest international footprint in fast service. The model now spans 145 nations and territories, from original-recipe buckets in Kentucky to Christmas dinner bins in Japan priced round $45.

Guardian firm Yum! Manufacturers says KFC generates roughly half its divisional working revenue and is focusing on 5% annual unit progress. Enlargement plans embody a £1.6 billion funding drive in Britain and shifting U.S. headquarters from Louisville to Plano, Texas, to streamline operations. Analysts anticipate Yum’s self-described “algorithm 12 months” to raise core working revenue 8% in 2025 as KFC modernizes kitchens and accelerates digital gross sales.

Sanders died in 1980 at 90, nonetheless touring shops in his white go well with to implement requirements. The mustachioed colonel could have disowned the gravy, however his 11 herbs and spices stay a worldwide staple.

Picture Courtesy: Shutterstock.com

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