The Complete Timeline of Kfc’s Name Change: from 1952 Sanders to Modern Kfc
While health perception drove marketing strategy, a severe legal headache in the state capital of Frankfort accelerated the change. In 1990, the Commonwealth of Kentucky moved to trademark its own state name. Facing deep budget deficits, state officials sought to protect the regional name from commercial exploitation, demanding royalties from companies that used "Kentucky" on commercial products.
The Commonwealth of Kentucky licensing fees would have required the restaurant giant to pay recurring state fees simply to keep its historic trade name on storefronts, print ads, and paper cups across America. Rather than hand millions of dollars to state coffers annually, PepsiCo took a hardline negotiating stance. Corporate leadership accelerated the rollout of the KFC rebrand in 1991, sidestepping state trademark jurisdiction entirely.
The stand-off lasted more than a decade. It was not until November 2006 that Yum! Brands and state officials reached an amicable legal settlement. The state agreed to terms that allowed the company to display the unabbreviated name without prohibitive royalties, which enabled the company to occasionally use "Kentucky Fried Chicken" on heritage packaging and retro marketing campaigns in subsequent years.
