Harvey Norman franchise: costs, fees and what to check before you buy

Harvey Norman Holdings (ASX: HVN) operates in Australia through a franchise system. Independent franchisees run the retail operations of Harvey Norman, Domayne and Joyce Mayne complexes, while the listed company provides the brand, systems and centralised services, and owns much of the property the stores trade from.

This is not a franchise that is advertised to the public in the usual way, but it is one of the largest franchise systems in Australia by sales. This guide explains how it works and what a franchisee, or an adviser to one, should understand.

Harvey Norman franchise at a glance

Listed	ASX: HVN
Australian brands	Harvey Norman, Domayne, Joyce Mayne
Model	Franchisees run retail operations; the company provides brand, systems and property
Company income	Franchise fees, rent from owned property, interest and other income (company reporting)
Franchised complexes	About 190 across Australia (company overview)
Franchisee sales	Reported separately from the company’s own revenue

Figures come from the public sources listed at the end of this guide and can change. Treat them as a starting point and confirm current numbers in the franchise disclosure document.

How the Harvey Norman model works financially

Harvey Norman Holdings has reported that its Australian income comes largely from franchise fees, rent and interest rather than from retail sales, which are recorded by the franchisees. Franchise fees are linked to franchisee turnover, and many franchisees trade from properties owned by the company, so rent is a second significant cost.

Media and proxy adviser reporting has described a tightly integrated system, including centralised services and support payments to franchisees in difficult periods. For a franchisee, the key question is how much of the gross margin remains after fees, rent, wages and centralised charges.

The numbers to test before you buy a Harvey Norman franchise

• Franchise fees and how they are calculated on turnover.
• Rent, outgoings and the lease terms where the company is the landlord.
• Centralised charges for services such as payroll, IT and advertising.
• Gross margin by category and the effect of promotions and supplier support.
• Any history of support payments and what conditions came with them.
• Working capital, stock levels and any finance arrangements with the franchisor.

Buying an existing Harvey Norman store

Franchisees are selected by the franchisor, and changes of franchisee are managed within the system rather than through open market listings. If you are offered a franchise, ask for the disclosure document, the franchise agreement, the lease and several years of the complex’s financial results, and get independent legal and accounting advice before signing.

How Franchise Co. can help with a Harvey Norman purchase

We work with buyers and owners of franchise businesses across Australia. For a Harvey Norman store we can:

• Review the numbers before you sign. Our business due diligence starts from $2,000 + GST and tests franchise fees, rent, centralised charges and category margins.
• Set up the structure and the books. Entity choice, GST, payroll and a chart of accounts that separates category margins and records centralised charges clearly. See accounting and tax and bookkeeping, BAS and payroll.
• Check your franchise fees. We reconcile franchise fees, rent and centralised charges to the sales they’re calculated on. See royalties and franchise fees.
• Plan the next store. If a second site is on the cards, we model the cash flow and funding first. See multi-site reporting.

Talk to us about a Harvey Norman franchise

Harvey Norman franchise FAQs

Franchise Co. is an independent accounting practice. We aren’t affiliated with, endorsed by or connected to Harvey Norman or Harvey Norman Holdings. Harvey Norman is a trademark of its owner and is used here only to identify the brand this guide discusses.

Sources and further reading

• Harvey Norman Holdings: company overview
• ChannelNews: questions raised about franchisee model
• ACCC: Franchise disclosure document

Sources checked November 2026. Franchise costs and fees change. Confirm current figures with the franchisor before acting.

This guide is general information for people considering a franchise in Australia. It doesn’t take your circumstances into account and isn’t personal tax, legal or financial advice.