Do you want to start a Nandos franchise and want to know the fees, agreement, details? If YES, here’s how much it will cost you to buy a Nandos franchise for sale.
Coming from Africa is this fast-food restaurant that has captured the hearts of many with its deliciously grilled peri-peri flavored chicken. Africa likes it hot and spicy, so Nando’s serves it hot and spicy. It was this unique peri-peri flavour that made two Portuguese friends, Fernando and Robert to buy up the restaurant they went to have dinner in.
This little restaurant in Africa has turned into a huge fast-food conglomerate that has over 1,000 stores in most countries of the world. If you want to be part of this enterprise in Australia through acquiring its franchise, then you need to read on to find out what it takes.
Buying a Nandos Franchise for Sale – A Complete Guide
Details to Note
- Franchise Cost
Acquiring a Nando’s franchise in Australia can cost anywhere between $950,000 and $1,000,000 and the initial franchise fee is pegged at $48,500.
- Acquiring a Restaurant
A franchisee is free to either build a new restaurant or buy an existing one. Buying an existing store brings more advantages with it like; it would be easier to get the Nando’s franchise loan, and you would have to spend less capital on marketing if the Nando’s Restaurant you bought already has a strong presence in the industry. Again, you would also benefit from the existing customer base.
- Financing your Nandos Franchise Purchase
Nando’s does not offer any direct financing to its franchisees, but it has an established Nando’s franchise loan system that enables franchisees get loans to finance their restaurants. In the same loan, new and existing restaurants are allowed to borrow up to 60 percent of their business value. A franchisee is allowed to borrow 100 percent of the business value if he comes with an existing residential property as security.
The loan is typically spread over 10 years or the length of the franchise agreement. If you gave your property as security, you get to be allowed 25 to 30 years as the standard loan term. Before the loan is approved, the applicant has to provide a business plan and profit forecasting for approval. You will also be required to provide 2 years personal tax returns, 2 years business activity statements (if you were previously running a business in a similar industry) and a clean credit history.
The bank will also want to see evidence that you have done your due diligence and you have the required skills to run a viable business and make profit to enable you repay the loan.
- Choosing a Location for your Nandos Franchise
Nando’s has an experienced Restaurant Development Team that will help a new franchisee build his restaurant from blue print to final completion on a turnkey basis. The Restaurant Development Team will help to develop the premises, assist with lease negotiations, provide drawings, and set up the interior etc. Applicants are strongly advised not to enter into any lease agreement for any premises without first contacting the Nando’s Restaurant Development Team.
Again, all and any specifications for the development of a site for a Nando’s restaurant must only be given to the prospective landlord/developer by a member of Nando’s project management/property team. Note that a potential franchisee is not allowed to present himself or herself as a representative of Nando’s unless such representation has been formally authorized by Nando’s.
Nando’s property team would evaluate all potential sites and grant only full and final approval if the site meets industry specifications. For a site to be chosen, it has to be around the intending demographics of the fast-food restaurant; it has to be in a catchment area and it must be easily accessible.
- Operations and Training
Nando’s offers intensive training to its intending franchisees. The training takes place six days in a week and it lasts for 12 weeks. The franchisees are trained on the general management of a Nando’s restaurant and its administration, personnel management and training, customer care, safety and security, marketing, restaurant maintenance, cleaning and hygiene, industrial relations, product preparation and presentation, business and financial agreement, and the handling and management of raw materials.
Furthermore, the initial staff of a franchise restaurant would be trained by Nando’s for a period of six weeks. After this training, the franchisee should be able to train subsequent replacement staff.
Throughout the training, the franchisee would be monitored on all aspects from cleaning the grills to customer communication and relations. The franchisee would only be allowed to commence operation of their own restaurant after successfully completing the training, but they would do that for a while under the guidance of their Regional Support Team.
Buying a Nandos Franchise – Non-Financial Requirements to be a Nando’s Franchisee
- Financial stability: an intending Nando’s franchisee has to be financially stable in order to meet up with all required expenses. In addition, the franchisee should have a very good and sound credit history to be able to access loans.
- Experience: any entrepreneur intending to join the Nando’s community needs to have very good managerial experience or he or she should have owned and managed a business. Asides from these practical experiences, no formal education is required, though it may be an advantage for the applicant. Included in these experiences is also computer literacy as the applicant has to be proficient in the use of computers.
- Be an owner-operator: the intending Nando’s franchisee should be someone willing to work in every aspects of the business. He or she should be able to pro-actively market his business, have the ability to sell himself, the Nando’s concept and the Nando’s experience. He must also be willing to perform service of all types.
- Create friendly environment: one of the selling points of Nando’s restaurants is their appeal to families. A Nando’s franchisee should be able to create a family-friendly, fun and welcoming environment.
- Have appreciable marketing skills: as the business would not sell itself, so the franchisee should of necessity have excellent marketing skills so that he can be able to sell the restaurant and help it keep up with the competition.
Personal Attributes an Intending Nando’s Franchisee is Expected to Have
The following are the personal attributes that an intending franchisee must of necessity possess.
- The franchisee must have the stamina to withstand the stress and hard work that goes with running a successful restaurant, especially a large Nando’s franchise.
- The franchisee should be enthusiastic, dynamic and self-motivated. He or she should be able to break previous records and reach new heights.
- The franchisee must demonstrate business and entrepreneurial skills and should also be a team player so as to carry everyone along at all times.
- The franchisee needs to demonstrate visible alignment with the Nando’s values, and should be ready to defend it at all times.
- The franchisee must be a people person and should have excellent interpersonal and communication skills. He or she must have love for working with people and must be able to gain and maintain goodwill with his or her customers by being friendly, patient and tolerant, yet firm.
- He must have above average motivational skills so that he would be able to manage others effectively, while creating a fun and personalized environment.
A Brief History of Nandos Franchise
- Founders – Fernando Duarte and Robert Brozin
- Date of Inception – 1987
- Headquarters – London, United Kingdom
With the love for travel comes new wonderful inventions and experiences. Nando’s chicken began as such. A Portuguese explorer, Fernando Duarte set sail to Africa, and there he was introduced to new, creative, exciting and equally delicious cuisines.
Despite this drawback, investing in Nando’s is quite lucrative as the restaurant is operative in 38 different countries, and it had been running franchises in most of them for more than two decades now.
Nando’s has not only made a name for itself but also a fortune. In 2014, Nando’s group holdings in the United Kingdom and Ireland had an annual revenue of $535 million; in 2015, they made $587.3 million; and in 2016, the annual revenue shot up to $808.6 million.
Currently, United Kingdom has 339 restaurants, Australia 264, South Africa 259, Malaysia 56, Canada 30, etc. Today, Enthoven owns more than 320 Nando’s outlets in the United Kingdom, and he is worth $1.1 billion according to Blomberg Billionaires Index, an income that is shared up between Nando’s and his very own Hollard Insurance Company.