Fast food franchises have become one of the most profitable and sought-after investments in Nigeria’s food and hospitality sector. With Nigeria’s ever-growing population, urbanization, and love for convenience, owning a fast food franchise can be a lucrative venture — if you understand the costs and structure involved.
But before diving in, one of the most common questions aspiring entrepreneurs ask is:
“How much does it cost to own a fast food franchise in Nigeria?”
In this article, we break it all down — from initial franchise fees to setup, staffing, equipment, and how to stay organized using tools like ProInvoice to manage payments, records, and operational finances.
Let’s walk you through it.
What is a Fast Food Franchise?
A fast food franchise is a business model where an entrepreneur (the franchisee) buys the right to operate under an existing brand name — like Mr Bigg’s, Chicken Republic, Domino’s Pizza, etc. — in exchange for a franchise fee and a percentage of sales or profit.
✅ You leverage the brand’s reputation, operational structure, menu, and supply chain.
✅ You also follow their standards and pay royalties to the parent company (franchisor).
Benefits of Owning a Fast Food Franchise in Nigeria
- Brand recognition: Customers already know and trust the name
- Training and support: You get onboarding, menus, equipment layouts, etc.
- Lower risk: Unlike starting from scratch, franchises have proven business models
- Faster returns: You start with a ready customer base
- Bulk supply and logistics: Provided by the parent brand
But all these benefits come at a cost — let’s break it down.
Estimated Cost Breakdown of Owning a Fast Food Franchise in Nigeria (2025)
Costs vary based on the brand, location, and size of the outlet, but here’s a general breakdown:
1. Franchise Fee: ₦5M – ₦30M
This is a one-time fee paid to the franchisor to use the brand name and system.
| Brand Examples | Estimated Fee |
|---|---|
| Mr Bigg’s | ₦10M – ₦15M |
| Chicken Republic | ₦12M – ₦20M |
| Domino’s Pizza | ₦25M – ₦30M |
| Tantalizers | ₦8M – ₦15M |
👉 Note: Some brands also charge annual renewal or royalty fees of 3–5% of monthly sales.
2. Outlet Setup & Renovation: ₦20M – ₦50M+
This includes:
- Location lease or purchase
- Renovation to meet franchise standards
- Signage, branding, lighting, etc.
- Interior furnishing (tables, chairs, counters)
- Fire safety, power, and plumbing systems
3. Kitchen Equipment: ₦10M – ₦25M
Equipment may include:
- Deep fryers and ovens
- Food warmers
- Refrigeration and storage
- POS systems
- Delivery infrastructure
4. Initial Inventory & Supplies: ₦3M – ₦8M
You’ll need:
- Raw food ingredients
- Packaging materials
- Uniforms and branded materials
- Cleaning supplies
Some franchises supply these at cost — others give local sourcing options.
5. Staff Recruitment and Training: ₦1M – ₦3M
You’ll typically need:
- Branch manager
- Cooks and kitchen assistants
- Cashiers and front desk staff
- Delivery riders (for online orders)
Most franchisors train your staff for consistency.
6. Licenses, Permits & Legal: ₦500K – ₦2M
You’ll need:
- Business name registration (CAC)
- Food handling certificates
- Health and safety permits
- Fire and environmental clearances
- Local government approvals
7. Marketing and Pre-launch Promotion: ₦1M – ₦5M
Even with a known brand, you still need local visibility. Budget for:
- Billboard or flex banners
- Influencer mentions
- Radio/TV/Online Ads
- Launch-day events
Total Estimated Cost Range
| Investment Stage | Cost Range |
|---|---|
| Franchise Fee | ₦5M – ₦30M |
| Setup & Renovation | ₦20M – ₦50M |
| Equipment & Inventory | ₦13M – ₦33M |
| Staffing & Permits | ₦2M – ₦5M |
| Marketing | ₦1M – ₦5M |
| Total | ₦40M – ₦120M+ |
💡 Important: Some franchises may offer financing options or flexible installment plans.
How Long Before You Make Profit?
Most fast food franchises in Nigeria recover their setup cost within 18–36 months, depending on:
- Location foot traffic
- Rent and overhead costs
- Sales volume
- Operational efficiency
- Seasonal spikes (e.g., festive periods)
How to Run Your Franchise Like a Professional
Owning a franchise is not a “sit-and-smile” venture — it’s an active business that needs clear structure, proper record-keeping, and accountability.
That’s where ProInvoice comes in.
How ProInvoice Helps Franchise Owners in Nigeria
✅ Generate branded invoices to track supply orders, catering services, or large corporate deliveries
✅ Record and manage expenses for staff payroll, supplies, and monthly sales
✅ Send and track payment links to vendors or partners
✅ Monitor transaction history to calculate revenue vs expenses
Whether you’re running the franchise as a solo investor or have partners, ProInvoice gives you clear visibility and professional records.
👉 Ready to run your franchise like a boss?
Sign up here for free
Tips to Succeed as a Fast Food Franchise Owner in Nigeria
📍 Choose a great location: High foot traffic = higher sales
👨🍳 Follow brand standards strictly — quality and service consistency matter
📊 Track your numbers — sales, profit, expenses, customer reviews
🤝 Train your team regularly — happy staff = better customer service
🧾 Use ProInvoice to run things like a proper business, not a side hustle
📢 Stay visible — run promos, offer combo meals, and engage online
Final Thoughts
Owning a fast food franchise in Nigeria can be a high-reward investment, but only if you go in prepared. With setup costs ranging from ₦40M to over ₦120M, it’s essential to budget smart, follow brand standards, and manage operations professionally.
Tools like ProInvoice make it easier to stay organized, invoice clients or partners, and keep track of your restaurant finances in real time.
🎯 Ready to manage your food business with clarity?
Start today by signing up here and take control of your franchise finances.
