Capital notes
Food Service Path capital notes
Food Service Path capital notes set out the real funds needed for a franchise café, bakery or quick service outlet. Use these notes to check each line before you sign.
Key costs to budget for food outlets
Food service franchises need careful budgeting. Upfront, expect to pay the franchise fee, fit-out or conversion of premises to the brand’s standard, equipment for kitchen and front-of-house, initial stock and packaging, and landlord or utility deposits.
Ongoing, you will have monthly royalties, a marketing levy, tech platform fees if the brand uses a point-of-sale or stock system, insurance, and a float for card charges or app delivery commissions. Allow for higher staff costs on evenings and weekends, as food outlets trade outside standard hours.
- Franchise upfront fee
- Premises fit-out or vehicle conversion
- Kitchen and service equipment
- Opening stock and packaging
- Landlord and utility deposits
- Royalties and marketing levy
- Working capital for slow or quiet months
Common places buyers underbudget
Buyers often underbudget for the last stretch before opening. Landlord fit-out packs, site security and compliance costs like the Certificate of Acceptability can add up. Allow for delays in municipal licences or late equipment delivery.
Plan for a larger opening stock float if bulk vendors have minimum orders or if storage is limited. Many new café and quick service operators overlook delivery platform fees, card machine costs and premium wages on weekends or holidays, which can strain opening cash flow. Many new owners forget to add working capital for two or three quiet months.
Build your float from real figures
Use the franchisor’s disclosure document to collect a breakdown of all upfront and monthly costs. Regulation 3 under the Consumer Protection Act requires the document to state projected working capital and the assumptions used. Compare these projections with turnover and cost data shared by current franchisees.
Ask to see three to five sets of real monthly figures from franchisees with similar-size outlets in similar areas. Speak to them directly about slow trading cycles, delivery partner costs, card fees and staff planning. This helps build a practical float beyond the minimum stated by the franchisor.
What to send us for a review
Send us basic details about your chosen franchise category, preferred site type and any figures you have from the disclosure document or franchisor. Attach notes if you have spoken to current franchisees or have a draft landlord pack.
With these pieces, we can check your capital stack, highlight missing costs and suggest which lines you should raise with the franchisor or your advisor before you sign.
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Send us your early budget numbers
If you want Ms Siphokazi Mbanjwa to check your numbers, territory and disclosure, send those details. We will help you spot gaps and prepare questions for the franchisor.