According to its website<\/a><\/strong>, the estimated that the establishment costs for a\u00a0Chicken Licken restaurant\u00a0is R4.8 million<\/strong>.<\/p>\n In comparison, you can expect to pay a minimum of R6.8 million<\/strong> for a ‘fly-thru’ store.<\/p>\n In both cases, you can expect to pay an initial franchise fee of R150,000<\/strong>.<\/p>\n Chicken Licken also extracts a royalty fee (6%) and advertising share (6%) that account for 12% of the franchise\u2019s turnover.<\/p>\n Debonairs<\/strong><\/p>\n The estimated<\/a> <\/strong>set-up costs for a Debonair’s franchise is R1.4 million<\/strong> with owners also expected to pay an initial franchise fee of R130,000 (excluding VAT).<\/p>\n Similar to other Famous Brand-owned restaurants, franchisees are also expected to pay 7% of their turnover in management fees and\u00a05% of their turnover in royalties.<\/p>\n Galito’s<\/strong><\/p>\n The cost of opening a standard 180 square metre Galito\u2019s<\/a><\/strong> outlet is in the region of R1,750,000<\/strong> (excluding VAT).<\/p>\n However, it notes that this cost is heavily dependent on the location, size and initial condition of the premises.<\/p>\n \u201cThis includes all development costs from project initiation (store design & staff training), to store launch promotions. This cost also includes a franchise joining fee of R110,000<\/strong> (excluding VAT),\u201d it said.<\/p>\n Fish & Chip Co<\/strong><\/p>\n The Fish & Chip Co estimates that the average setup cost for a franchise is R699,000<\/strong> including VAT.<\/p>\n Franchisees are also expected to pay an initial joining fee of R140,000 – however, this is included in the setup fee.<\/p>\n Prior to the construction of the store, the full amount of R699 000 needs to be paid in full, Fish & Chip Co said.<\/p>\n “The full payment, as well as a signed Franchise and Lease Agreement, must be present before the commencement of construction.<\/p>\n “The balance can either be cash or \\financed through any institution of your choice. If assistance is needed with the balance that is financed, we will provide a business profile, which is a requirement of the bank,” it said.<\/p>\n McDonald’s<\/strong><\/p>\n According to McDonald’s South Africa, the official cost<\/a><\/strong> of a franchise varies and actual costs are only determined when an individual franchise is offered to an applicant.<\/p>\n “The size of the restaurant, location, pre-opening expenses, inventory, selection of equipment, signage, seating and style of decor and landscaping will affect cost,” it said.<\/p>\n “The estimated cost can be somewhere from R4 million – R6 million<\/strong>, depending on the type of restaurant and other factors.”<\/p>\n McDonald’s also states that an applicant must have a minimum of 35% of the purchase price of a Restaurant in unencumbered, non-borrowed cash.<\/p>\n “Institutional finance through e.g. banks can be used to fund the balance (McDonald\u2019s does not provide financing or loan guarantees nor does it permit any form of borrowing from any third parties for purposes of financing the franchisee\u2019s initial 35% contribution),” it said.<\/p>\n Partnerships of any kind and absentee investors are not allowed.<\/p>\n Nando’s<\/strong><\/p>\n Nando’s charges a franchise application<\/a><\/strong> fee of\u00a0R25,000 (VAT inclusive) and a\u00a0franchise fee of\u00a0R230,000<\/strong>.<\/p>\n This fee includes:<\/p>\n Nando’s also estimates that you will need approximately\u00a0R6,560,000<\/strong> (plus VAT) for establishment costs when setting up your restaurant.<\/p>\n Roman’s Pizza<\/strong><\/p>\n The initial joining fee for a Roman’s Pizza is R90,000<\/strong>, which the franchisors need as a form to confirm commitment.<\/p>\n Roman’s estimates that establishment costs are approximately R2.3 million<\/strong> (92.17%) based on a 120m\u00b2 store size.<\/p>\n Costs, however, do vary in accordance with various factors and the size of store, exchange rates, and numerous other factors affect this estimate, it said.<\/p>\n Franchisees are also expected to have initial working capital of R100,000<\/strong> (4.35%).<\/p>\n Steers<\/strong><\/p>\n Steers states that you can expect<\/a> <\/strong>to pay\u00a0approximately between\u00a0R1.7 million – R2.5 million<\/strong> in set up costs when first starting up a franchise.<\/p>\n The company currently offers three different models with kiosk (R1.59 million), standard (R1.65 million) and drive-thru\u00a0(R2.35 million) options available.<\/p>\n As with other South African franchises, there is also a franchise fee (excluding VAT) of between\u00a0R114,800 and\u00a0R175,700 depending on the style of franchise\u00a0you are looking to open.<\/p>\n Wimpy<\/strong><\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2016\/04\/Chicken-Licken.jpg\")
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