Cost of Franchises in Zambia

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:

1. 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.

2. 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.

3. Brand Consistency

From Lusaka to Ndola, customers get the same taste and service—because all franchises follow strict brand rules.

4. Faster Growth

Franchisors use franchises to grow quickly in new locations without running every outlet themselves.

5. 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.

For Rich Mindset Media

1/6/2025