Here’s How Much It Costs To Open A Nando’s Franchise Restaurant In SA
Here’s How Much It Costs To Open A Nando’s Franchise Restaurant In SA! Opening a franchise to one the top fast food brands in South Africa is known to be very expensive. As with other major purchases, purchasing a franchise involves different costs that are required to be paid in order for the sale to go through smoothly. Buying a franchise is different from buying a business a as whole, with buying a franchise the parent company expects buyers to operate under their business model and sometimes require the share of the profits of the franchise. If one wants to open a Nando’s franchise below are the costs that they will have to cover in order for them to successfully acquire the franchise.
People who are interested in opening their very own Nando’s restaurant have to pay an application fee which is R25 000, the purpose of the application fee is to show a person’s commitment to actually wanting to acquire a Nando’s franchise and to compensate for the costs of psychometric testing, interviews and in-store assessment.
The company also requires the applicant to pay a franchise fee which is R250 000, the applicants pay this fee to acquire the right to use and operate under the Nando’s name and concept; pay for initial owner and staff training and pay for the assistance that the company will give them with site selection and evaluation. The Nando’s fast food chain is one of the biggest fast food chains in the country, the company has been able to solidify its brand in South Africa and around the world, therefore making an investment into opening up a Nando’s franchise can be a lucrative business venture for people that are willing and able to.
The costs that are associated with owning a Nando’s franchise are very high and one needs to be financially ready to pay these costs for them to be successful in their application. The applicant has to have enough for working capital requirements and pre-opening costs which would be over and above estimated figures. The initial operating capital that is required when one opts for the Drive Thru restaurant model is R500 000 and R415 000 for the Incline restaurant model. The total average establishment costs estimated by the company are around R7 050 000 (R7 million) for the Drive-Thru model and R5 250 000 (R5. 2 million) for the Incline model.
By Thomas Chiothamisi
