Review of the Nandos USA Franchise Opp and Startup Costs

If you’re looking to start a Nando’s USA franchise, then you’re going to be out of luck (or out of cluck, if you prefer) for that business opportunity. You can get your peri-peri fix if you’re willing to make a foreign investment, however, because Nando’s is currently offering franchise opportunities in both Australia and South Africa. If you’re looking to find your own success with a business model that is proven, then you’ve got an excellent opportunity for success with Nando’s.

What Does It Cost To Begin a Nando’s Franchise?

The cost of starting a Nando’s depends a lot on your location that you choose. For South African locations, the franchise fee is about $20k at the time of this writing with the current exchange rates. Before paying the franchise fee, however, there’s also a R10k fee to pay, which equates to about $1,000. This is done to prove that you want a franchise and covers the costs of an in-store assessment, psychometric testing, and interviews. If you withdraw from the process, part of the application fee can be refunded.

In Australia, the franchise fee is $45k according to the current exchange rate. That does not include the GST. For both franchises, it’s expected that a minimum of $390k will be required in order to achieve a grand opening. This investment amount could reach as much as $490k plus local taxes depending on a number of variables, including the location that is chosen and approved by Nando’s. In order to qualify, you’ll need a minimum liquid capital of $100k and

Nando’s USA vendors are invited to apply for these opportunities, but there is an expectation that a franchisee will be involved with the business. That may mean extensive travel may be required or relocation depending on personal preferences. This organization also looks for franchisees that have previous restaurant experience first, but will put anyone through an extensive training program to get them up to speed.

There are also financing opportunities available through Nando’s and their third party agreements that can provide up to 70% credit on fees and other startup costs. In South Africa, there is a 7% ongoing franchise royalty from net sales and a 5% royalty that covers a national advertising campaign. In Australia, royalties may vary based on location.

What Kind of Support Is Received?

When you decide to become a Nando’s franchisee in Australia or South Africa, you’ll be placed into a six week training program that will teach you the basics of the restaurant industry and the policies and procedures of the organization. These classes are at the company headquarters in both countries and will help to bring any franchisee up to speed on how to successfully run a franchise from all aspects, including staffing and cost controls.

Nando’s also provides a level of ongoing support because they stay actively involved with each franchisee. The organization believes that the only way to truly find success is through being involved in all facets of the operation of each franchise, which is why the franchisee is required to be involved with all functions. You’ll find the same level of support from the home organization as a franchisee once the application is approved and you’ve paid the necessary fees based on your location.

It is interesting to note that this franchise doesn’t initially offer multiple units during the application process. All franchisees must be able to prove that they can be successful in their initial assigned territory with their new business before being allowed to operate more than one restaurant. If that can be proven, then not only is it possible to operate more than one unit, but Nando’s encourages franchisees who have success to run more than one restaurant.

In South Africa, there is a provision in the franchisee agreement that you must be able to adequately pass the training course in order to fully run your restaurant. You must prove competence in all areas of the restaurant in order to be permitted the opportunity to run your franchise and you’ll be given ongoing supervision from the organization’s Regional Support Team. Training for franchisees in South Africa can often reach 3 months and this training is considered non-negotiable.

Once you and your restaurant are approved, you’ll also receive marketing and advertising support from the home office. Business development managers are on hand with relevant advice and you’ll get an unsurpassed level of support in operations, financial matters, and other local trends and statistics thanks to the dedicated regional support.

Is Starting a Nando’s Franchise Right For You?

For someone looking to become Nando’s USA franchisee, the opportunity to go overseas and expand a business model might be that one piece of a missing investment needed to round out a portfolio. If you can manage the day-to-day operations adequately and be directly involved in the business, then you could definitely make this be a winning opportunity for you.

Many USA franchisees, however, may discover that waiting for a new opportunity domestically might make more sense. The level of investment needed to start the foreign franchise is quite extensive, potentially reaching half a million dollars. In return, you’d receive the opportunity to spend even more on travel costs or need to fund a relocation so that you could be involved with the business as required by the franchise agreement.

With success, however, the opportunity to expand with this organization is massive. Nando’s is currently in 38 different countries and has been operating and franchising in many of them for at least two decades. In Australia, the growth in this business has been phenomenal, as sales have doubled over the last five years.

If you’re ready to start getting involved with something special, then apply online today to begin the discussion with Nando’s about your Australian or South African franchise opportunity. Your adventurous spirit could be what leads you to the success you’ve always dreamed of having.