FRANCHISING IN ZAMBIA: What It Costs to Own a Steers, Chicken Licken, Nando’s, KFC, or McDonald’s
By Kamphengele Ngulube
Franchising is a powerful way for Zambian entrepreneurs to run a business using an already successful brand. Instead of starting from scratch, you buy the right to use a popular name like Steers®, Nando’s®, or KFC®—and follow their proven systems.
How Franchising Works:
- Ownership & Licensing
You don’t own the brand—you license it. The franchisor (brand owner) gives you the right to use their name, logo, menu, and business systems.
- Franchise Fees & Royalties
You pay an upfront joining fee and then a monthly percentage (royalty) of your sales. These fees cover training, branding, marketing, and support.
- Brand Consistency
From Lusaka to Ndola, customers get the same taste and service—because all franchises follow strict brand rules.
- Faster Growth
Franchisors use franchises to grow quickly in new locations without running every outlet themselves.
- Support & Training
You’ll receive training on operations, customer service, and marketing. This helps you run the business well and meet brand standards.
FRANCHISE COSTS (Converted to Zambian Kwacha)
Note: Exchange rate used: ZAR1 = ZMW1.45 | USD1 = ZMW25 (approximate)
Steers®
Joining Fee: R130,000 ≈ K188,500
Total Investment: R1,207,000 ≈ K1.75 million
Contact: enquiries@famousbrandsbw.co.bw | Tel: (+26) 393 7771
Chicken Licken®
Store Investment:
Standard store: R4.8 million ≈ K6.96 million
Fly-Thru™: R6.8 million ≈ K9.86 million
Franchise Fee: R180,000 ≈ K261,000
Monthly Fees:
6% royalty + 6% ad fee = 12% of your sales
Finance: No funding provided. Most lenders require you to contribute 50% upfront.
Nando’s®
Initial Investment: R5.25m – R7.05m ≈ K7.6m – K10.2 million
Franchise Fee: R250,000 ≈ K362,500
Application Fee: R25,000 ≈ K36,250
Ongoing Fees:
Royalty: 7%
Ad Fee: 5%
McDonald’s®
Net Worth Required: $464,500 ≈ K11.6 million
Investment Range: $464,500 – $2.3 million ≈ K11.6m – K57.6 million
Franchise Fee: $45,000 ≈ K1.125 million
Monthly Fees:
Royalty: 4%
Ad Fee: 4%+
KFC®
Total Investment: $1.44m – $2.77m ≈ K36 million – K69.3 million
Franchise Fee: $45,000 ≈ K1.125 million
Requirements:
Net Worth: $1.5m ≈ K37.5 million
Cash: $750,000 ≈ K18.75 million
Fees:
Royalty: 4–5%
Ad Fee: 5%
Agreement Term: 20 years
Franchising is a high-investment, high-support path to owning a business. It may not be cheap—but it gives you the power of a global brand, training, and a customer base ready to buy. Always do your due diligence and speak to existing franchisees before signing any agreements.
1/6/2025
