Here's the deal, according to Motley Fool (a well-respected biz site):
The fried-chicken chain is offering the runner-up a $10,000 recording deal to write and star in an advertisement for its newest entree, KFC Famous Bowls. And that's not all: The former contestant also will get a year's supply of the new menu item. Granted, the deal is not as glamorous as the RCA recording contract that the winner gets, but KFC is evidently betting that whoever comes in second will want to stay in the spotlight enough to accept the offer.
http://www.fool.com/News/mft/2006/mft06052315.htm