| Franchise | Set-up cost | Franchise fee | Monthly payment (% of gross) |
|---|---|---|---|
| KFC | |||
| Burger King | R5 000 000. Double click this video | ||
| McDonald’s | McDonald’s South Africa estimates the cost of a franchise to be anywhere between R4 million – R6 million, depending on the type of restaurant and other factors.
Applicants are are also expected to have a minimum of 35% of the purchase price of a restaurant in unencumbered, non-borrowed cash. |
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| Nando’s | Fees
Application Fee: R20 000.00 (Vat Inclusive) Franchise Fee: R220 000.00 (VAT exclusive) Establishment Costs Approximately R6 560 000.00 Plus VAT (but including the items listed under “Initial Working Capital” below) Initial Working Capital Approximately R500 000.00 (Excluding VAT)This figure comprises: (This the franchisee must budget for in their own capacity – it is not Nando’s responsibility) R110 000.00 initial stock R390 000.00 Other Working Capital, deposits and pre-opening expenses Breakdown of average Total Investment Approximately R6 060 000.00 (Excluding VAT) |
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| Chicken Licken |
Monthly payments are 12% of turnover made up of:
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| Pizza Hut | Access to verifiable development capital of R25 Million ( a minimum of 40% of which must be equity ) | ||
| Wimpy | R1 930 000 | R114 300 | 12% |
| Roman’s Pizza | R1 800 000 | R 70 000 | 8% |
| Debonaires | R1 720 000 | R130 000 | 12% |
| Barcelo’s | R1 600 000 | ||
| Domino’s Pizza | R1 500 000 | ||
| Kauai | R1 300 000 | R110 000 | 10% |
| Steers | R1 200 000 | R130 000 | 11% |
| Subway | R1 100 000 | ||
| Cinnabon | R1 000 000 | 7.5% | |
| Burger Perfect | R 970 750 | R 65 000 | 8% |
| Anat | R 950 000 | R100 000 | 8% |
| Scooter’s Pizza | R 950 000 | 12% | |
| Pizza Perfect | R 830 000 | R 65 000 | 9% |
| 1+1 Pizza | R 800 000 | 7% | |
| Zebro’s Chicken | R 756 000 | R 75 000 | 4% |
| London Pie | R 675 750 | ||
| King Pie | R 550 000 | R 54 000 | |
| Fish & Chip Co. | R 525 439 | R120 000 | R4 400 |
Unlike the traditional franchisee model, the low royalties and marketing fees are fixed and not based on a percentage of turnover, making this model attractive to potential franchisees.