How much do you need to own a fast-food franchise?

How much do you need to own a fast food franchise?

Are you interested in owning a fast food franchise? Well, here’s a breakdown of how much you’d need to own one of the top five food franchises in South Africa.

Food franchises
The cost of a food franchise / Supplied

South Africa’s food franchise industry is one of the largest in Africa, with a variety of options for everyone. From KFC to McDonald’s, it’s safe to say we love good food, even if it’s not that healthy. 

It’s one thing being a loyal consumer to all the fast food chains we have available, but what about owning one? Well, while it needs a lot of capital, the rewards are worth it. 

A 2024 research study by Eighty20 showed that around 20 million people eat at a fast food restaurant in a month. That’s about a third of South Africa’s population. This is a sign that the fast food industry continues to thrive even in this tough economy. 

So, if you wanted to own one of the top five franchises in South Africa, how much would you need? The answer is a lot.

Sadly though, it’s not as easy as going to the bank and asking for a loan. Most franchises like KFC, Steers and McDonald's have strict financial rules for people who want to join their business and tend to prefer aspiring entrepreneurs to have a strong financial base. 

Basically, you need to have your own money to join the club. 

For those interested in joining the food franchise industry, BusinessTech recently compiled a list of brands and their respective financial requirements, sourced from whichfranchise.co.za, on how to own and operate a franchise. 

Let’s take a look at the top five food franchises and their respective financial demands: 

1. KFC

KFC 25'
KFC / Facebook

KFC has over 1,057 outlets nationwide, making it the most popular fast food franchise in South Africa. While they’re not actively seeking new franchisees, you can still own a KFC by purchasing an existing franchise.

The cost of owning a KFC franchise is estimated at around R6 million, though this can vary based on location, size, and operational needs.

2. McDonald’s

McDonalds 25
McDonalds / Facebook

McDonald’s has a special place in the hearts (and stomachs) of South Africans. Although the franchise hasn’t updated its costs for 2025, here’s a breakdown based on the latest available figures:

  • Application fee: R37,500

  • Franchise fee: R250,000

Average investment required:

(This is how much you would need to own a franchise.)

  • Drive-thru franchise: R6.7 million

  • Inline franchise: R5.4 million

Cash contribution (50% of the investment):

  • Drive-thru franchise: R3.5 million

  • Inline franchise: R2.8 million

3. Steers

Steers 25'
Steers / Facebook

Known for its flame-grilled burgers, Steers provides these estimated costs for potential franchisees:

  • Drive-thru franchise fee: R75,000

  • Inline franchise fee: R68,000

Average investment required:

  • Drive-thru franchise: R3.75 million

  • Inline franchise: R1.97 million

Monthly royalties:

(This is how much you would pay the company every month.)

  • Royalty fees: 11% of monthly net sales

4. Chicken Licken

Chicken Licken 25'
Chicken Licken / Facebook

For fans of soul food, Chicken Licken offers franchise opportunities with the following financial breakdown:

  • Franchise fee: R180,000

Average investment required:

  • Fly-thru franchise: R6.8 million

  • Inline franchise: R4.8 million

Cash contribution (50% of the investment):

  • Drive-thru franchise: R3.4 million

  • Inline franchise: R2.4 million

Monthly royalties:

  • Franchise royalty: 6% of monthly net sales

  • Marketing royalty: 6% of monthly net sales

5. Nando's

Nando's 25'
Nandos / Facebook

If you’re looking to invest in the famous flame-grilled peri-peri chicken franchise, here’s what you can expect:

  • Application fee: R37,500

  • Franchise fee: R250,000

Average investment required:

  • Drive-thru franchise: R6.69 million

  • Inline franchise: R5.47 million

Cash contribution (50% of the investment):

  • Drive-thru franchise: R3.47 million

  • Inline franchise: R2.86 million

Note: All costs are estimates and can vary based on factors such as location, size, and specific operating requirements. Always conduct detailed research before making any investment decisions.

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