How much it costs to buy a franchise in South Africa

Have you ever wondered, how much it cost to buy a franchise in South Africa? If you did then, you will love this. Below you will find a list of the costs of opening a new franchise in South Africa.

The size of the restaurant, location, pre-opening expenses, inventory, selection of equipment, signage, seating and style of decor and landscaping will affect this cost.

Franchise Set-up cost Franchise fee Monthly payment (% of gross)
KFC R5 500 000 – KFC is not offering any franchise opportunities any more. ( From time to time, existing KFC franchisees may elect to sell their businesses, and it is therefore possible to become a new KFC franchisee by purchasing an existing KFC business. Please note, however, that approval of any new franchisee into the KFC system is at the sole and unfettered discretion of the KFC franchisor.)

Franchise financing organisations

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.

Franchise financing organisations

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)

more information

Franchise financing organisations

Chicken Licken
  • Chicken Licken® store costs: R4,8 million
  • Chicken Licken® Fly-Thru cost: R6,8 million minimum, dependent on the landlord contributions and which store you choose to build as well as which store best suits the area. The initial franchise fee is R150,000.00.
  • Chicken Licken® extracts a royalty fee (6%) and advertising share (6%) that account for 12% of the franchise’s turnover.
  • Chicken Licken® does not provide finance, though financial organisations normally require that the applicant provide approximately 50% of the loan.

Monthly payments are 12% of turnover made up of:

  • Royalty fee 6%
  • Advertising share 6%
  • The duration of the franchise agreement is 10 years or as per shopping centre lease duration

more information 

Franchise financing organisations

Pizza Hut Access to verifiable development capital of R25 Million ( a minimum of 40% of which must be equity )

more information

Franchise financing organisations

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

Franchise opportunities

Dream Team Capital franchise

Dream Team Capital (DTC) offers customised support to allow our clients to achieve their critical growth objectives in raising venture capital for business start-ups, expansions or mergers and acquisitions. We assist clients to full funding of projects through our national and international network of venture capital companies, private equity groups,

furniture manufacturer franchise

A national furniture manufacturer is offering the chance to open your own very successful retail store in the Joburg area With stores in Port Elizabeth, Eastlondon, George, Jeffereys Bay & Cape Town, the group is rapidly expanding and our product in great demand. The outlet sells at R450 000 with interest FREE payment options available

fish and chips franchise

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.

Kids Courier Franchise Opportunities

Kids Courier is a well established brand with fantastic franchise opportunities. We have been safely transporting children for over ten years. We currently have 3 successful  franchises in the West Rand: Kids Courier Randpark Ridge, Little Falls & Kids Courier NorthCliff.

mrkruger franchise

Mr Kruger is a successful gold exchange business, founded in 2014. The performance of the first Mr Kruger-branded outlets has clearly demonstrated that in the prevailing market conditions, there is a real need for the services we offer.


Fastway Courier service franchise

The investment required for a Fastway Courier Franchise ranges from R50,000 upwards depending on the cost of the franchise area and the price of the vehicle used.


Types of business insurance in south africa

From the day an entrepreneur starts a business, he exposes himself to certain risks. Even before the first employee is hired, a business is at risk, making it important to have the right insurance in place.

Funding a franchise with your bank

The first thing you need to do is actually talk to the franchises you are interested in. Once you have decided on the franchise, then make contact with your bank. The business bankers you normally find inside a branch (of any bank) is clueless on how to work with such a big deal. All the banks has mobile acquisition teams that normally handle large transactions like franchise funding. All banks will require collateral and a contribution from you personally.

Other organsations funding franchise opportunities

Buying a franchise in south africa

Preparing To Buy A Franchise in south africa


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