Franchise fee and royalty are services
The one-time franchise fee and the ongoing royalty are payments for services and rights, so GST is generally charged on them. The rate has generally been 18%, but you should confirm the current rate.
Registration and input tax credit
GST registration depends on turnover thresholds and the nature of your supplies. A registered franchisee can usually claim input tax credit on GST paid to the franchisor, subject to the rules.
What to ask
Ask the brand how it invoices, whether prices quoted include GST and how stock and royalty are billed. Confirm everything with a chartered accountant.
This guide is general information, not legal or tax advice. Check current rules with a qualified professional.