The setup costs are specifically determined by the store size, location and layout. Indicative investment costs for an average store (based on a 80-100 m² store) are R 600 000 – R 850 000 (excluding VAT). Only major equipment costs are eligible for lease finance – therefore the minimum cash in hand investment required is R 400 000. The balance should be financed by the franchisee self. All set up costs are the responsibility of the Franchisee.
We undertake, at the Franchisee’s costs, the registration of a private company to act as your trading vehicle and our licensed Franchisee.
The Franchisor will not be a Shareholder in your Franchise store and profits belongs to the Franchisee.
The total ongoing obligatory Franchise Fee will be 5% of total sales (inclusive of VAT) calculated and paid weekly to the Franchisor. The weekly fee covers all Franchise Fees, Royalties, Regional and Corporate administration costs and CHICKEN CITY brand marketing investments.
Franchise Fee – A Franchise Fee of R 50 000 (excluding VAT) is payable in full prior to the opening of a Chicken City outlet. A deposit of 50% is payble once a specific area and location has been allocated. The balance is due once development commence.
Investing a vast sum of money is a serious undertaking and we recommend that you should obtain the service of a attorney that specialises in commercial contracts and seek accounting and financial advice on this Franchise proposition
Existing Chicken City stores are currently achieving gross margins of 50% or more