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"I have just completed formulating the Kentucky Fried Chicken flavour and have produced a breading mixture for people to be able to recreate that flavour right in their own kitchen."

Well, the first thing that strikes me is legal issues - even before you get to structuring your business. I assume you have got legal advice on this, but I would have thought that KFC had at least their name protected, let alone the actual mixture.

"I have media waiting to conduct an interview for an article, and I have interest from The Mad Butcher. However i am also guaranteeing a percentage of every sale to 4 local community organisations that help where help is needed, and I would like to make this an opportunity that others can participate in to make some extra capital."

I assume by capital you just mean money - as an accountant capital generally means the basic funds of a company.

"Of course this would also raise funds for the company by selling localised area distributorships, but generally speaking it would enable others to look after their local area, making a profit from each sale. A micro business network of sorts."

So now we're down to the basics. There are no rules for this. For example, I don't know about KFC itself, but MacDonalds is a business using a full franchise system - where they specify every aspect of how branches run. Other franchises are less prescriptive - and therefore the quality of the service more variable.

One of the things that makes MacDonalds so popular is it's the same pretty much anywhere in the world - although with national variations. This makes the business more dependent on franchisees being committed to the same standards and ways of working. In turn this means the franchisor puts considerable effort into their systems. Other franchisors are more hand off - so the business is more dependent on the franchisee - and presumably the franchise fees are lower.

A quick google seach will lead you to various sources of info on franchises. Of course you can create a network without creating a formal franchise - but I'm not sure there's much difference (as you can tell I'm not a legal advisor) and many of the issues you face will have been faced by others.

The more control you want over how the individuals represent your business, the more work you need to do to ensure things in the agreement are specified in full. For example If you have four organisatons you want supported, I assume you would want your distributors to support. Even if you pay them out of your franchise fees, you'll want to support them through your distributors.

I hope this is a little help and at least points you in a direction that gets you more detailed help.