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Nando’s Franchise Loan

With a Nando’s franchise loan you can get your foot into a investment that could potentially pay off more than simply owning a freehold commercial property.

Nando’s itself has around 300 restaurants across Australia and is one of the most recogniseable Portuguese and peri-peri chicken restaurants in the world.

If you need a Nando’s franchise loan to kickstart a new business career, discover how to get approved and how much you can borrow.

How does a Nando’s franchise loan work?

How much can I borrow?

Nando’s is actually one of the strongest brands in the franchise space and is accepted by a few major lenders including the banks.

As a general rule:

  • New or existing restaurant: Borrow up to 60% of the business value.
  • Borrow up to 100% with an existing residential property as security.
  • Loan term: Typically 10 years or the length of the franchise agreement.
  • Loan term with property as security: 25 to 30 years (standard loan term).
  • A business plan and profit forecasting will be required for approval.
  • Low doc options not available.
  • Commercial interest rate discounts available by negotiation.

It’s all about presenting a strong business case to the right bank!

Borrowing the amount you need for the Nando’s restaurant you want to buy and at a sharp interest rate is about choosing the right lender.

Once you find the right lender, it’s the expertise of a specialist mortgage broker that can ask the right questions from you so they can build a strong case for why you want to buy a Nando’s franchise and how you can make the business work.

Call us on 1300 889 743 or complete our free assessment form and discover if you qualify for a Nando’s franchise loan.

How can we help?

Our mortgage brokers are commercial loan experts and know exactly what banks are looking for in Nando’s franchise loan application.

Banks allocate certain “exposure” limits for the franchises they will consider for a franchise loan meaning they will only lend out a certain amount of funds a year.

These exposure limits will dictate your borrowing power and your ability to get approved in the first place.

Although Nando’s is seen as a strong franchise by the major banks, it doesn’t necessarily mean you’ll get approved first time, every time.

We can help you build a strong case that demonstrates your strengths as a business owner and how you plan to run a successful venture.

By refinancing and using your residential property as security, you can potentially borrow up to 100% LVR depending on how much equity you have available!

What do I need to do?

As a minimum, you’ll need to provide:

  • 2 years personal tax returns.
  • 2 years business activity statements (BAS) if you were previously running a business in a similar industry.
  • A clean credit file.

While these basics provide the bank with a picture of your financial situation, it demonstrates a fraction of your “character” as a future franchisee.

The bank wants to see evidence that you have the skills and have done your due diligence so you have the best chance of running a viable business and can continue making your Nando’s franchise loan repayments.

Apart from your financial statements, the lender will generally want to see a business plan showing capital expenditure and profit forecasting. You’ll need an accountant for this.

You’ll also need to provide some evidence of your success in either owning or managing a similar-sized restaurant in the past.

You don’t need to have been in the restaurant game but you’ll need to provide business financials of how you were to successfully run a business in a similar industry like a cafe.

Why buy a Nando’s franchise?

While there is more security in buying a freehold commercial property in the restaurant industry, you have the potential to generate a lot more profit by running a franchise.

There’s as much work involved in running any other type of business but with Nando’s franchise you have an existing brand name and a network of resources you can use to grow your venture.

How much can I make?

It’s difficult to reach a dollar figure in terms of the revenue you could stand to make from running your own Nando’s restaurant.

It comes down to a few things, including:

  • Your skills in marketing and cutting unnecessary costs.
  • The seating capacity of the particular restaurant you want to buy.
  • Your store location and the local competition.

Yes, you do have the backing of a large franchisor but the restaurant industry can be quite fickle, with the majority of restaurants closing in their first year.

Success in a Nando’s franchise comes down to being very active in all aspects of operations, particularly in the first couple of years in business.

How much does this franchise cost?

A Nando’s franchise generally costs $950,000 to $1,000,0000 with an initial franchise fee of $48,500.

Of course, this is only correct at the time of writing so you should ask for a Uniform Franchise Offering Circular (UFOC) and get a solicitor to look over the conditions and terms with you.

What is a UFOC?

The UFOC basically spells the complete costs of running a Nando’s franchise including any royalty expenses, advertising contributions and deposit bonds required to lease the premises from the landlord.

It’s basically the franchise agreement and it’s a legal requirement that Nando’s provide this to you before asking you to sign up to anything.

Don’t put any deposit down until you request a UFOC at

What will Nando's provide

Apart from organising and managing the lease for you in a head lease arrangement, Nando’s also provides:

  • A 12-week full time training program encompassing restaurant and office administration.
  • Complete store fit-out.
  • Local marketing and business managers in the areas of marketing, finance and operations.
  • The opportunity to operate more than one restaurant.

Does that mean I need to be active in managing the store?

Yes. Although you don’t necessarily need restaurant experience, it makes commercial business sense, and is a Nando’s requirement, that you be active in the day-to-day operations.

A franchise is not a passive investment like some other types of commercial property investments.

You should consider whether a Nando’s franchise loan suits your overall investment goals.

Should I buy an existing restaurant or a new one?

In terms of getting approved for a Nando’s franchise loan, banks generally prefer applicants that are looking to buy an existing Nando’s store, particularly if it can provide strong business banking and profit and loss statements over the past two years.

From a business perspective it also makes sense because you’ll have to spend less working capital on marketing if the Nando’s store already had a strong presence in a retail hub.

You may also be able to tap into an existing customer base which is a huge advantage over buying a Nando’s franchise in a new location.

What are the drawbacks of buying an existing store?

If the store has a bad reputation due to a scandal like food poisoning, this may not necessarily show up in the business financials when you’re undertaking your due diligence, particularly if it happened recently.

On top of that, the current franchisees and Nando’s may be reluctant to tell you this because the goal of the franchisee is to sell the business and the goal of Nando’s is to sell the franchise to you.

Because of this, you may want to enlist the services of a business broker to help you choose a strong-performing Nando’s restaurant.

When you’re locked into a contract for a 5 years plus, it’s an expense worth paying.

Apply for a Nando’s franchise loan today.

Discover if you qualify

Our specialist mortgage brokers can put you in strong position to get approved for a Nando’s franchise loan by building your application and choosing the right lender.

Get approved the first time around!

Call us on 1300 889 743 or complete our free assessment form today.