Capital notes
Fit Finder capital notes
See the main cost lines you must plan for when matching to a franchise. Fit Finder capital notes highlight fees, float, renewals and working capital you need to budget before you commit.
The main cost lines to cover
Any franchise agreement starts with key expenses that shape your cash flow. These costs usually begin with the joining or initial fee, which secures your right to trade under the brand. Fit-out or vehicle costs follow, covering shopfitting, signage or a branded vehicle if your model requires it. Equipment charges range from point-of-sale systems to specialist tools or kitchen gear, depending on the category.
Opening stock is a major line for retail, food and some service franchises. Deposits for leased sites and utilities are another upfront requirement. Ongoing, you must cover royalties and marketing levies, which are set in your franchise agreement. Most operators also need a working capital float for wages, utilities, rent, and vendor payments in slow months, especially after seasonal peaks or before local events bring in trade.
- Upfront fee or joining fee
- Fit-out, shopfitting or branded vehicle
- Equipment and specialist tools
- Opening stock
- Site and utility deposits
- Royalties and marketing levy
- Working capital float for quiet months
Where buyers often underbudget
Many first-time franchisees focus on the upfront fee and visible shop costs, but miss the margins and float needed after opening. Quiet months, early wage bills, or delayed vendor payments can strain cash if working capital is too thin. Some underestimate the time it takes for trading to stabilise, especially when local promotion or new staff need extra investment.
Renewals, periodic refurbishments and tech updates are skipped in many plans. These can come earlier than expected, especially if the franchisor updates branding or systems. In food service and childcare, buyers sometimes overlook municipal compliance costs or delays in getting licences, adding to unplanned expenses.
Building your float from the facts
Your disclosure document must list the main initial fees, deposits, regular royalties and marketing levies, as required by CPA Regulation 3. It should also show historical growth, outlet numbers, and the support structure, plus a list of current franchisees with contact details. This document is the first place to check the true float needed and the pattern of quiet months.
Speak to current franchisees about their cash requirements for slow periods, staff costs and local promotions. Compare their figures with the projections in your disclosure pack. If figures differ by more than a month’s float, ask why and review with your accountant before deciding.
What to send for your session
For a Fit Finder capital review, send us the capital band you plan to invest, your experience, the hours you can give, and your preferred operator or investor role. Add any family responsibilities or territory preferences that may affect your cash flow or working hours.
We use these details to match you to franchise categories and to prepare capital notes that fit your likely costs, float and working capital needs. If you already have a disclosure document or notes from a franchisor, mention this in your message so we can point out the key lines to check.
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Get your capital notes ready
Share your background, funding amount and time commitment with Ms Siphokazi Mbanjwa. We will help you check your numbers and raise the right questions for your Fit Finder session.