What the big franchises really cost in Australia
Franchise cost pages are a swamp of recycled guesses, so this one separates what franchisors publish themselves from what directories estimate, and says which is which. Entry cost is only half the number; the fee structure decides what you keep.
The entry costs, by brand
| Franchise | Entry | The structure |
|---|---|---|
| McDonald's | ~$1.5m unencumbered funds required; $1.2m to $2.6m all-in buying an existing restaurant | ~4 to 5% service fee + ~4% marketing + rent to McDonald's |
| Guzman y Gomez | $1.7m to $2m per new restaurant, 40% in liquid assets (franchisor-published) | fees on enquiry; analysts estimate ~10% of sales all-in |
| KFC | rarely recruits; entry is buying existing restaurants, est. $1.5m to $2.5m plus | ~5% royalty + ~4% marketing (estimate) |
| 7-Eleven | $400,000 to $1m plus | gross-profit split (you keep ~44 to 50%), 7-Eleven pays rent and equipment; income guarantees apply |
| Anytime Fitness | $350,000 to $975,000, most land $500,000 to $750,000 | flat ~$699/month royalty plus levies, not a percentage |
| F45 | $349,000 to $786,000 plus GST | ~7% royalty with monthly minimums; brand in turnaround, price that in |
| Subway | roughly $150,000 to $500,000 by site | 8% royalty + 4.5% advertising = 12.5% of gross |
| Boost Juice | $220,000 to $350,000 plus GST (franchisor-published) | royalty estimated 6 to 8% + 3% marketing |
| Jim's Group | $20,000 to $50,000 all-in; territory-only from under $10,000 in some regions | flat ~$600 to $900/month, no percentage |
Three structures hide in that table: percentage-of-sales brands (Subway's 12.5% is the steepest), flat-fee brands (Anytime, Jim's, where growth is all yours), and the 7-Eleven profit split, which is its own species: they pay the rent and equipment, you keep a share of gross profit with a published income guarantee. The same revenue produces very different owner incomes under each.
The two questions before any franchise
First, what does the franchisor itself publish versus what directories guess? The figures above marked franchisor-published are firm; treat everything else as an estimate until the disclosure document is in your hands. Second, what does exit look like? McDonald's entry is buying an existing restaurant; Boost publishes a transfer process; resale value depends on the agreement's term and the brand's health, ask any F45 buyer from 2021.
Financing a franchise
Major-brand franchises carry established lender appetite, McDonald's even publishes its own 70% borrowing cap against agreed valuation, and strong systems can gear well on the business alone. Everything else follows the acquisition playbook: deposit, property backing for the goodwill, equipment and fitout on asset finance. Property-backed borrowers generally price around 6% to 9% p.a. and non-property-backed deals around 9% to 13%, with approvals commonly back in 24 to 48 hours. Start at business acquisition finance.
Frequently asked questions
How much does a McDonald's franchise cost in Australia?
McDonald's requires about $1.5m in unencumbered personal funds, with all-in purchase of an existing restaurant running $1.2m to $2.6m, a $60,000 plus GST licence fee, and its own published 70% borrowing cap.
What is the cheapest franchise to buy into?
Jim's Group territories run $20,000 to $50,000 all-in, from under $10,000 territory-only in some regions, on a flat monthly fee with no percentage royalty.
Which franchise fee structure is best?
Percentage brands take more as you grow; flat-fee brands like Anytime and Jim's cap the franchisor's take; 7-Eleven's profit split trades a share of gross profit for the franchisor carrying rent and equipment. Model your own volumes under each.
Can I finance a franchise purchase?
Yes, and major systems carry established lender appetite with published borrowing frameworks. Deposits, property backing for goodwill and asset finance for fitout follow the standard acquisition structure.
Brand, structure and the real number
Tell us the brand and the site and we will come back with what lenders will actually do, usually within a day.
This article is general information only and not financial, credit, or tax advice. Ventas Asset Lending is a finance broker, not a lender. Approvals are subject to lender assessment. Consider your own circumstances and speak to a qualified professional, including your accountant for any tax questions.