Franchise Economics
Franchise economics refers to the financial structure of a franchise arrangement, encompassing: the initial establishment fee paid by the franchisee to the franchisor; ongoing royalties (percentage of turnover); marketing levies; working capital requirements; and the timeline to breakeven. For Xpresso Café, the reported structure is: total investment R1.1M–R1.3M (establishment fee + working capital); royalties 5–7% of turnover; marketing levy ~2%; breakeven 12–18 months (franchisor claim, unaudited). The viability of the model depends on achieving consistent throughput of 500–1,000 customers per store per day.
Connections
- Xpresso Cafe Business Model — defines, source: WhichFranchise 2025
- South African Franchise Market — part-of, source: multiple