Capital expenditure
Dry goods €800/m². A kitchen, four times that.
Fit-out cost across European markets depends on the condition the property is handed over in — Shell and Core, Category A, or Category B. Retail fit-outs for dry goods, convenience concepts and personal services average between €800 and €1,300 per square metre. Food and beverage and quick-service restaurant developments run from €1,500 to upwards of €3,500 per square metre.
The difference is not finish quality. It is dedicated air handling with carbon filtration, commercial kitchen infrastructure, walk-in cold storage, grease separator interceptors, three-phase electrical supply, gas manifolds and accessible facilities compliant with European building directives. In high-traffic malls and regeneration schemes, institutional landlords often offset part of this with a Tenant Improvement Allowance or base Category A works to attract a recognised brand — which is a negotiation, not a given.
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| Sector | Initial fee | Fit-out per m² | Royalty | Total initial CapEx |
|---|---|---|---|---|
| QSR / fast casual | €25,000 – €50,000 | €1,800 – €3,500+ | 5.0% – 7.0% | €250,000 – €800,000+ |
| Convenience retail | €15,000 – €35,000 | €850 – €1,600 | Supply markup or 2% – 4% | €180,000 – €500,000 |
| Specialised retail | €20,000 – €40,000 | €700 – €1,400 | 4.0% – 6.0% | €120,000 – €350,000 |
| Boutique fitness | €25,000 – €45,000 | €900 – €1,800 | 6.0% – 8.0% | €200,000 – €600,000 |
| Mobile / home-based | €10,000 – €25,000 | Van conversion | Fixed, or 5% – 9% | €30,000 – €85,000 |
Operating deductions
Four percentages come off gross revenue.
Ongoing obligations are calculated on monthly gross revenue excluding VAT, and they stack. An ongoing management royalty of 4% to 8% funds commercial and operational support. A National Marketing Fund takes a further 1% to 3% for brand-level campaigns. Local Store Marketing is a mandatory minimum commitment of 1% to 2% that you spend yourself, inside your own territory. Technology and point-of-sale subscriptions add €200 to €1,000 a month regardless of turnover.
Under the Dutch Franchise Act, franchisors owe full accounting transparency on how marketing-fund contributions are used — evidence that the money went to system-wide marketing rather than central overhead. It is a reasonable question to ask in any European jurisdiction, whether or not the statute compels an answer.
- Initial franchise fee: €10,000 to €50,000, one time, on execution
- Ongoing management royalty: 4% to 8% of gross sales
- National Marketing Fund: 1% to 3% of gross sales
- Local Store Marketing: 1% to 2%, spent by you in your own territory
- Technology and POS: €200 to €1,000 per month
Funding
A third to 40% equity, the rest senior debt.
Candidate prequalification typically requires liquid, unencumbered net worth of 30% to 50% of initial capital expenditure before a franchisor will proceed. The financing structure that follows usually leverages 30% to 40% equity against 60% to 70% senior debt, syndicated through banks with specialised franchise lending units — NatWest and HSBC in the UK; BNP Paribas, Société Générale and Bpifrance in France — underwriting against the network's historical trading record rather than against you alone.
That record is why a lender will look at a franchise application it would decline from an independent. It is also why the lender's model, like the franchisor's, assumes a competent site. The network's history does not transfer to a bad address.
