Out of Nando’s 250 locations across Australia, 55 of them are no longer operating. With more than one in five of the peri-peri chain’s stores closing, attention turns to the disagreements between franchisees and franchiser.
In the year leading up to March, 22 franchises have stopped operating, almost doubling the amount from the previous few years. Problems seem to revolve around issues involved with franchise agreements, and them not being reinstated. The company has received previous media attention following their demand to franchise owners to upgrade their stores with costly renovations—asking them to fork out up to AU$1 million. Owners were told that their franchise licenses might not be renewed should they fail to upgrade their stores. However, Nando’s has not been performing well enough, a sentiment reflected in one-third of the Nando’s stores closing over the past five years.