Quick answer: A mobile service franchise in Australia usually costs $5,000 to $50,000 to start. A retail or food franchise with a shop usually costs $50,000 to $250,000 or more, according to the Franchise Council of Australia. After you buy, you pay ongoing fees: either a percentage of your revenue or a fixed monthly fee. Which of the two you’re on can change what you keep by thousands of dollars a year.
This guide comes from Jim’s Group, Australia’s largest franchise network, with 5,870 franchisees across 50+ divisions. It covers the upfront price, the ongoing fees, the costs buyers miss and your rights under the Franchising Code. It also shows what a Jim’s franchise costs. Read more how to own a Jim’s franchise.
Key takeaways
- Budget $5,000 to $50,000 for a mobile service franchise and $50,000 to $250,000+ for retail or food. A shopfront franchise has a lease, a fit-out and staff to pay before it earns a dollar.
- Ask every franchisor whether ongoing fees are a percentage of revenue or fixed. Based on publicly listed franchise terms, most home service franchises charge 8% to 12% of revenue, so the fee goes up as your business grows.
- Set aside money to live on while you build up. First-time buyers forget this cost more than any other.
- Use the 14 days the Franchising Code gives you before signing. Read the disclosure document, call current and former franchisees, and get independent legal and accounting advice.
- Most Jim’s franchises cost around $30,000 to $35,000, including tools and trailer, with fixed fees of around $1,000 a month. Jim’s never takes a percentage of what franchisees earn.
How much does a franchise cost in Australia?
What a franchise costs in Australia comes down mostly to one thing: does the business need a shop? The Franchise Council of Australia puts service franchises at $5,000 to $50,000 and retail franchises at $50,000 to $250,000 or more.
| Type of franchise | Typical upfront cost | Why |
| Mobile or home-based service (mowing, cleaning, dog wash, handyman) | $5,000 to $50,000 | No premises. You need a territory, equipment and a vehicle or trailer. |
| Retail or food (cafés, shops, takeaway) | $50,000 to $250,000+ | Fit-out, lease, stock, staff and more working capital |
Source: Franchise Council of Australia.
A mobile service franchise has no lease to sign and no shop to fit out. That’s why service franchises are the cheapest way into owning a business.
What makes up the upfront cost of a franchise?
The upfront cost of a franchise has six parts, and the advertised price rarely covers them all.
1. The franchise fee
The franchise fee buys you the right to trade under the brand in a set territory. It also gets you into the franchise system: training, booking systems and support. A territory sold with existing customers costs more, but you’re earning from the first week.
2. Equipment and vehicle
For a service franchise, equipment means the gear you work with. For lawn mowing that’s a trailer, mowers and hand tools. For cleaning it’s equipment and supplies. Some franchisors bundle equipment into the package and some don’t, so ask.
3. Fit-out (retail only)
In a retail or food franchise, the shop fit-out is often the biggest single cost. Mobile service franchises don’t need one.
4. Training
Training is usually included in the franchise fee. Check how long it runs, where it’s held, and whether travel and accommodation are extra.
5. Working capital
Working capital is what you live on while the business builds up. First-time buyers forget it more than any other cost. Budget several months of personal living costs on top of the purchase price.
6. Professional advice
The ACCC recommends getting independent legal, accounting and business advice before you sign a franchise agreement, ideally from advisers with franchising experience. Budget a few thousand dollars for it. It’s the cheapest insurance you’ll ever buy.
What are the ongoing costs of a franchise?
Ongoing franchise costs fall into four groups: the royalty or franchise fee, a marketing contribution, lead fees in some systems, and normal running costs. Franchises differ most here, and this is where the real cost of owning one hides.
| Ongoing cost | What it is | How it’s usually charged |
| Royalty or franchise fee | Your ongoing payment for the brand, system and support | A percentage of revenue or a fixed fee |
| Marketing or advertising contribution | A shared fund that advertises the brand | Percentage or flat amount |
| Lead or job fees | Some franchisors charge for each customer enquiry they send you | Per lead |
| Running costs | Fuel, insurance, phone, equipment repairs, accounting | Paid by you, as in any business |
Is a percentage royalty or a fixed franchise fee cheaper?
Once the business passes $100,000 to $150,000 a year in revenue, a fixed fee is cheaper. Based on publicly listed franchise terms, most home service franchises charge a royalty of 8% to 12% of revenue, often with a separate marketing levy on top, so the fee goes up every time the business grows. A fixed fee doesn’t move, whether you have a quiet month or a record one.
| Your annual revenue | 8% royalty | 12% royalty | Jim’s fixed fees (around $1,000/month) |
| $100,000 | $8,000 | $12,000 | $12,000 |
| $150,000 | $12,000 | $18,000 | $12,000 |
| $200,000 | $16,000 | $24,000 | $12,000 |
| $300,000 | $24,000 | $36,000 | $12,000 |
| $400,000 | $32,000 | $48,000 | $12,000 |
At a 12% royalty, fixed fees of $1,000 a month work out cheaper from $100,000 in revenue. At 8%, they’re cheaper from $150,000. Past that point the gap widens every year, and a percentage royalty often comes with a marketing levy too. So compare the total you’d pay, and ask every franchisor one question: “Do you take a percentage of my revenue?”
Royalty rates are typical of home service franchises. Each franchisor’s disclosure document shows its actual fees.
How much does a Jim’s franchise cost?
Most Jim’s franchises cost around $30,000 to $35,000, including tools and trailer. A Jim’s Cleaning franchise costs roughly $30,000. Ongoing fees are fixed, at around $1,000 a month for most divisions, and Jim’s never takes a percentage of what franchisees earn.
Joel Kleber, Chief Marketing Officer at Jim’s Group, said: “Look, most of our franchisors will charge around $30,000 to $35,000, and that includes the tools and trailer. Cleaning’s roughly $30,000 as well. But talk to the franchisor for your area, because they’ll give you the real number.”
| Jim’s franchise | What you pay |
| Upfront cost (most divisions) | Around $30,000 to $35,000, including tools and trailer |
| Jim’s Cleaning | Roughly $30,000 |
| Monthly fees | Fixed. Around $1,000 a month all-in for most divisions, covering the franchise fee, advertising and lead fees. The exact amount depends on how many leads you take. |
| Lead fees | Usually $9 to $18 per lead. Most franchisees stop needing to pay for new leads after about a year, once their client base is built. |
| Percentage of your earnings | None, ever |
| Pay-For-Work Guarantee | If Jim’s can’t supply enough work, your income is guaranteed: $2,000 or $2,500 a week in most divisions, and up to $3,000 a week in some, such as Jim’s Diggers |
| Training | You can attend training before signing a franchise agreement |
Jim’s Group works through regional franchisors in each division. They sell and support the franchises in their area. Prices vary by division and region, because a territory in a growing suburb is worth more than one in a quiet country town, so the regional franchisor will give you the exact figure.
For a full lawn mowing breakdown, see Lawn Mowing Franchise: Costs, Fees & Earnings in Australia.
What hidden costs do franchise buyers miss?
Buyers most often leave out the vehicle, insurance, living costs, small running costs, tax timing and the physical side of the work.
- A vehicle that can tow or carry your gear. It’s often not part of the franchise package.
- Insurance. Public liability at minimum, plus cover for your vehicle and your income.
- Living costs while you build up. Your first months go on building a client base.
- Fuel, phone and consumables. Small weekly costs, but they add up.
- Tax timing. The initial franchise fee is usually treated as a capital asset, so it generally isn’t deductible straight away. Many ongoing costs, including franchise fees, training fees and loan interest, may be deductible. Ask your accountant.
- The physical side. A service franchise is hands-on work. New Jim’s franchisees commonly say their body takes about two months to get used to it.
How do people pay for a franchise?
Most franchise buyers in Australia pay with a mix of savings and finance. Lenders are usually more comfortable funding the vehicle and equipment, because those secure the loan, than the territory itself. So plan to cover part of the franchise fee from savings.
- Most first-time buyers use some savings, even if it’s only for living costs while they build up.
- Equipment and vehicle finance is the easiest part of a franchise to borrow for.
- Some franchisors offer finance. Ask the franchisor what’s available.
Among Jim’s franchisees interviewed on the More Than Just Mowing podcast, money was the most common reason they put off buying, sometimes for years. If money is what’s holding you back, talk to the franchisor about finance early, before you decide a franchise is out of reach.
What are your rights before you sign a franchise agreement?
The Franchising Code of Conduct, enforced by the ACCC, gives Australian franchise buyers 14 days to review documents before signing and a 14-day cooling-off period after signing. Its key protections are:
- The franchisor must give you the disclosure document, the franchise agreement in the form you’ll sign, and a copy of the Code at least 14 days before you sign.
- After signing a new franchise agreement, you have 14 days to change your mind. This is the cooling-off period. The franchisor must refund your payments within 14 days, minus any reasonable expenses that are set out in the agreement.
- Since 1 November 2025, franchisors must disclose any significant capital expenditure you’ll be expected to pay, and discuss how you’ll recoup it, before you sign.
- Franchisors must give franchisees an annual statement of how marketing and other shared funds were spent.
Use the 14 days. Read the disclosure document, call current and former franchisees, and have a lawyer and accountant review it. Prospective Jim’s franchisees regularly tell us that talking to current franchisees was the most useful thing they did.
Is buying a franchise worth the cost?
A franchise is worth the cost when it solves the hardest part of starting a business, which is finding customers. With an independent business, you build demand from nothing. A franchise with a known brand and a steady supply of leads gives you work from the start.
“I tried three months with my own brochures. Didn’t work at all. Didn’t get any leads.”
Jim’s Mowing franchisee, speaking on the More Than Just Mowing podcast (March 2025)
The trade-offs are real, though. Some new franchisees earn more in their first year than they did in their old job. Others take a pay cut for a year or two while they build up. Both are normal, and your result depends on your area, your effort and how well you use the support available.
Jim Penman, founder of Jim’s Group, said: “The key to success in franchising is an overriding concern for the welfare of franchisees, and constant improvement in customer service.”
See also: How much can you earn with a Jim’s franchise?
Franchise cost FAQs
Mobile service franchises are the cheapest franchises to buy in Australia. The Franchise Council of Australia puts service franchises at $5,000 to $50,000. Most Jim’s franchises cost around $30,000 to $35,000, including tools and trailer.
No. Jim’s Group charges fixed fees of around $1,000 a month for most divisions, including advertising and lead fees. Jim’s never takes a percentage of what a franchisee earns.
Based on publicly listed franchise terms, most home service franchises in Australia charge a royalty of 8% to 12% of revenue, often with a separate marketing levy. Each franchisor’s disclosure document shows its actual fees.
The initial franchise fee is usually treated as a capital asset, so it’s generally not deductible upfront. Ongoing franchise fees, training fees and loan interest may be deductible. Check with an accountant.
Yes. Lenders commonly finance the vehicle and equipment for a franchise, and some franchisors offer finance too. Ask the franchisor what’s available before you decide a franchise is out of reach.
You need enough to cover the purchase price, or the part a lender won’t fund, plus several months of personal living costs while the business builds up.
Under the Franchising Code of Conduct, you have 14 days after signing a new franchise agreement to change your mind. The franchisor must refund your payments within 14 days, minus reasonable expenses set out in the agreement.
Yes. Prospective Jim’s franchisees can attend training before signing a franchise agreement, so they can see the business properly before they commit.
Ready to find out what it would cost in your area?
Prices vary by division and region. The quickest way to get a real number is to ask.
Or call 131 546 and ask about owning a Jim’s franchise.
Sources
- Franchise Council of Australia: resources for franchisees (cost ranges by franchise type)
- ACCC: Franchise disclosure documents; Changing your mind after signing a franchise agreement; Guidance on changes to the Franchising Code (1 November 2025); Steps to take before you sign
- Competition and Consumer (Industry Codes—Franchising) Regulations 2024 (F2024L01605)
- business.gov.au: Buy a franchise
- Jim’s Group: How do franchising fees work; More Than Just Mowing podcast