McAlister’s Deli was first founded in 1989 and has been serving up delicious sandwiches, salads, soups, and spuds that are sure to keep customers coming back. With hundreds of locations open across the United States, it’s easy to see why McAlister’s Deli has become a favourite destination for so many people.Becoming an owner is an exciting opportunity to buy this Mcalister’s Deli franchise. Joining this expanding brand comes with special advantages like
- Professional guidance and support from experienced staff
- Proven marketing strategies to promote growth
- Access to exclusive ingredients and proprietary recipes
- An award-winning menu that’s sure to please customers
- Long-term success prospects with low overhead costs
How much does a Mcalister’s Deli franchise cost?
To open a new McAlister’s Deli, you would typically need to invest between $401,655 and $1,459,265 depending on the location.
This cost includes the initial franchise fee of $35,000 and additional costs such as real estate and equipment purchases or leases, lease deposits, inventory, and more.
If you’ve already got an existing restaurant that meets the McAlister’s Deli standards for franchisees, then you may be eligible for a reduced fee. But keep in mind that there are a few other associated costs:
- An ongoing royalty fee of 5% of gross sales
- A 1.5% marketing fee (which is used by the franchisor for various marketing activities)
- A 4% service fee (which is collected by the franchisor for use in providing operational support services)
- A local store marketing fee (which may be set at a minimum amount or as a percentage of gross sales)
- And any other fees or charges as mentioned in the franchise agreement.
Overall, opening a McAlister’s Deli isn’t cheap, but with over 600 franchise stores across 31 states and almost 2 million customers each week, it definitely pays off!
| McAlister’s Deli Franchise Price and Costs | |
| McAlister’s Deli Franchise Fee | $35,000 |
| McAlister’s Deli Franchise Cost | $401,655 to $1,459,265 |
| Royalty Fee | 5% of gross sales |
| Advertising Fee | 1.5% of gross sales for national marketing and up to 3% of gross sales for local marketing |
| Term of Agreement | 10 years
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| Is franchise term renewable? | Yes |
| Renewable Franchise Fees | $17,500 |
How much do Mcalister’s Deli franchise owners make?
You might be wondering how much money you can make from owning a This franchise. The short answer is that it depends. Every franchise is different, and earnings can vary depending on factors like location, size of the restaurant, and local market conditions.
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Earnings projections
The good news is that This franchise has some good projections when it comes to earnings. According to the This franchise Disclosure Document (FDD), a typical single-unit franchisee could expect to generate annual revenues of between $1.3 million and $4.2 million per year after operating expenses, depending on its size, location, and other factors such as labour costs, food costs, rent, and other operating expenses.
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Profitability
Keep in mind that profitability depends largely on how well you manage your franchise; there are several factors that you need to consider in order to maximise your profits, such as cost control, brand promotion, and efficient time management. That said, This franchise has a good track record of profitability for owners in terms of return on investment (ROI). According to the FDD, “The initial investment necessary for an average restaurant typically ranges from $401,655 to $1,459,265 with an average initial investment of about $741,000 as of May 2020.”
At the end of the day, owning a This franchise is not only about generating profit; it’s also about providing quality food that satisfies customers while developing strong relationships with them over time.
What is McAlister’s Deli franchise profit?
I will estimate/analyse/project the McAlister’s Deli franchise profit and years to recoup the investment (ROI).
| AUV | Estimated Annual Profit (12.5%) | Estimated Annual Profit (15%) | Estimated Annual Profit (18%) |
| $ 1,865,861 | $233,232 | $279,879 | $ 335,854 |
| Recoup mid-point
$ 930,460 |
3.9 years | 3.3 years | 2.7 years |
The estimated McAlister’s Deli franchise profit is in the range of $233,232 to $335,854 and it will take 2 to 4 years to recoup the investment. According to industry standards, getting a return on the franchise investment will not take a very long time.
Mcalister’s Deli Franchise Requirements
There are a few prerequisites you must fulfil if you’re thinking about buying this franchise. The first is that you have to have liquid assets worth at least $250,000. With this money, you can buy your franchise and set it up for success. In some markets, you can also claim up to $50,000 in liquid funds. Franchise charge A $35,000 initial franchise fee is furthermore required. This payment is not transferable. You must make this one-time payment when you sign the franchise acquisition agreement. Process and costs of training
You should also think about the franchise’s price and training requirements. You will go to several training sessions at the McAlister’s Deli corporate office or other venues approved by them.
What are Mcalister’s Deli franchise reviews?
This franchise review’s format could be of interest to you. Why are so many people content? Here are a few justifications:
- A good product The franchisee provides mouthwatering, freshly made sandwiches, salads, soups, and desserts to its consumers.
- Support from the corporate office: When opening offices, franchisees receive setup and planning assistance. They also have access to financial resources, marketing help, training materials, and up-to-date user manuals.
- Low entry barriers This business demands a comparatively low initial investment when compared to other eateries. So it appears that if you think about owning this company, you may expect a wonderful experience!
Mcalister’s Deli Franchise Rankings
Some of their notable rankings include:
- Entrepreneur Franchise 500: McAlister’s Deli ranked #178 in the 2021 edition of Entrepreneur’s Franchise 500 list.
- Franchise Times: McAlister’s Deli ranked #170 on the Franchise Times Top 200+ list in 2020.
- Fast Casual Top 100 Movers and Shakers: McAlister’s Deli ranked #37 on the Fast Casual Top 100 Movers and Shakers list in 2019.
Keep in mind that rankings may vary from year to year, and it’s always a good idea to check the latest rankings from reputable sources for the most up-to-date information.
What is Mcalister’s Deli?
McAlister’s Deli is a fast-casual restaurant that specialises in homestyle deli favourites. From our world-famous spuds and legendary sweet tea to our sandwiches, salads, and soups, McAlister’s Deli offers wholesome options for all tastes. Our approach of scratch-made solutions with a personal touch has made us a beloved favourite for over 30 years.
You’ll be part of the McAlister family when you own a franchise. We have crafted our system in such a way that you can experience all the support and resources of a major chain restaurant while remaining independent and proudly establishing your own identity. With nearly 700 stores from coast to coast, you will tap into an extensive network that provides access to fresh ingredients at below-market prices, so you can build your business with ease and confidence.
Is Mcalister’s Deli a franchise opportunity?
Are you wondering if McAlister’s Deli is the right franchise opportunity for you? The answer is an emphatic yes! Taking the plunge and opening a This franchise comes with some pretty awesome benefits.
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Support from day one
When you join the McAlister family, you won’t be alone. You’ll be given access to hands-on training, and as your business grows, you can count on ongoing franchise support such as marketing campaigns, flexible menu options, cost-management tools, and more.
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Keep up with trends.
McAlister’s Deli takes pride in always staying ahead of the game when it comes to innovation and trends, and being part of that family means remarkable opportunities for growth. The team is constantly working on new and exciting items for its menu, so you can keep your customers coming back for more.
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A recognisable brand
As a franchise owner, you get the power of the McAlister’s brand behind you. That means getting to use logos, trademarks, and other distinguishing features that make customers instantly think of McAlister’s Deli. It also means taking advantage of its already existing relationships with vendors and suppliers, which allow you to get discounts on materials that don’t exist outside of the franchise—a massive benefit!
In short, becoming an owner at McAlister’s Deli gives you all the advantages of a well-known brand in a secure business model, so that all your hard work pays off well in the long run.
Facts That Nobody Told You About McAlister’s Deli
The following information regarding the entire company is classified:
- All of their gourmet products are made with premium ingredients and wholesome recipes. You get access to special recipes and ingredients that encourage repeat business as part of your franchise agreement.
- The business provides meal services in addition to franchise restaurants. For franchisees wishing to enter the food service industry, this means even more potential business.
- In 2019, the company was named one of the “Top Franchises” by Forbes Magazine due to its long-term profitability and good value for investors.
McAlister’s Deli is a great opportunity for those looking to start a successful franchise business with low startup costs and great potential returns—not to mention delicious food!
| McAlister’s Deli Franchise Review and Information | |
| Industry Type | Food and Beverage |
| Sub Category | Fast Casual Restaurants |
| Year Established | 1989 |
| Company Name | McAlister’s Deli |
| Founder/Management Head | Dr. Don Newcomb (founder), Joe Guith (president) |
| Franchising Started | 1994 |
| Employees at Company H.O | Information not available |
| Franchise Expansion Plan | McAlister’s Deli aims to continue its growth, but specific expansion plans are not publicly available. |
| Number of Units | 491 |
| Number of Franchise Units | Over 430 (as of 2021) |
| Social Media Handles | |
| Youtube | |
| Company Office location | McAlister’s Deli is headquartered in Atlanta, Georgia. |
Mcalister’s Deli Training for Franchises
A great part of the This franchise is its training. Not only will it give you the skills and knowledge that you need to run your own franchise, but it’ll also give you the confidence that comes from working with experienced professionals.
The McAlister’s Deli training programme is comprehensive and organised into six phases:
- Getting Started: This is a two-week course that prepares new franchisees for ownership, covering everything from the financial aspects of owning a business to operational best practises.
- Opening Unit Training: This hands-on training provides an overview of running a McAlister’s Deli, including food safety and operation training for all back-of-house positions.
- Pre-Opening Support: A support team will guide franchisees through pre-opening requirements such as local health department permits, hiring staff, and menu development.
- Opening Coaching and Support: A trained coach will ensure that everything is running smoothly during the grand opening before transitioning into normal operations.
- Field Support and Visits: A franchise business consultant will provide continued support each month to make sure your business is successful and staying up to code with all regulations and standards set by McAlister’s Deli.
McAlister’s Deli has an extensive network of experienced professionals in place to help train its new franchisees, so if you’re thinking about joining this world-class franchising system, you too can get access to this incredible support system!
Mcalister’s Deli Operations for Franchises
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Training and support
Before any new McAlister’s Deli opens, the franchisor will help you get ready with a comprehensive training programme. This programme helps teach both owner-operators and employees about all aspects of running a franchise, including food production, safety procedures, customer service, inventory management, marketing, and more.
Once your business is up and running, franchisees can rely on an experienced, professional support team at McAlister’s Deli for advice or guidance as needed. This includes marketing assistance with local store promotions to ensure customers keep coming back.
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Menu Innovation
McAlister’s Deli has been innovating their menu to stay ahead of market trends since 1989, so franchisees can always count on staying ahead of the curve when it comes to tasty offerings. The menu innovation team works hard to keep pace with customers tastes while ensuring special diets are catered for with vegan options, etc. Plus, they’re continually launching innovative products, like their new breakfast sandwiches!
How is Mcalister’s Deli territory granted to franchises?
If you’re considering opening a franchise, you may be wondering about the territory granted to each franchise.
The good news is that Mcalister’s Deli territory is determined on an individual basis depending on your specific needs and preferences. Mcalister’s takes a number of factors into consideration when granting franchises, such as:
- The size of the local market
- Population density
- Proximity to existing or prospective competitors
- Availability of suitable real estate for development
Mcalister’s also considers the potential franchisee’s capacity to build and operate the business successfully. This means that you should have a solid financial background and a sound business plan in place before applying for a This franchise. The business plan should consider not only the operational costs associated with opening a McAlister’s Deli but also other factors such as marketing and customer service strategies.
Ultimately, if approved, your territory will be carefully chosen to ensure that you have the opportunity to succeed as a This franchisee.
What is the franchise term of agreement and renewal?
You’re probably wondering what kind of agreement you will be entering into with McAlister’s Deli and how long it will last. The initial franchise term agreement with McAlister’s Deli is typically set for 10 years; however, you do have the option to renew your agreement for an additional 10-year term after that.
Renewal terms are determined on a case-by-case basis, but you can consider these points:
- You must operate the store in compliance with the franchise agreement, including all required maintenance standards and franchise regulations.
- All dispute resolution requirements under the Franchise Agreement must be met.
- All fees and other required payments must have been made on time, as outlined in the agreement.
- You have to demonstrate a commitment to the continued development of business practises that are consistent with brand standards.
- All operating licences must be current.
- No pending or unresolved litigation against McAlister’s Deli exists involving you or your store.
But don’t worry—if you’re in good standing, meeting these renewal requirements is usually very straightforward.
Does Mcalister’s Deli provide financial assistance to franchises?
You’ve probably heard of the term “franchise” before and might be wondering if McAlister’s Deli can provide you with some kind of financial assistance. The answer is yes!
McAlister’s Deli is owned by Focus Brands, which invests in its franchisees. Through their network of lenders, Focus Brands offers several attractive financing options to qualified franchise candidates. There are loans for up to 90% financing, and no collateral is required for franchise development. They also offer additional support to existing franchise owners, such as:
- Refinancing existing loans
- Expansion capital
- Special-occasion funding (such as for an emergency or something else)
McAlister’s Deli also has a variety of loan programmes designed to help new and existing franchisees with their franchising needs. One example is the Franchise Capital Network, which provides access to a select group of lenders that offer long-term financing solutions tailored to the needs of This franchisees. Other programmes include equipment leasing, term loans, and working capital lines of credit.
McAlister’s Deli has your back when it comes to financial assistance. With a team of experts ready to guide you through all the financial paperwork and help you make informed decisions about your franchising journey, you know they have your best interests in mind.
Pros and Cons of Owning a McAlister’s Deli Franchise
Making the decision to become the owner of a This franchise is one that requires careful consideration. To get an idea if it’s the right move for you, let’s take a look at the pros and cons of owning a This franchise.
Pros
- Becoming part of one of America’s fastest-growing fast-casual dining chains
- Receive initial and ongoing support with operations, marketing, and training from McAlister’s corporate team.
- Have access to innovative menu items and products.
- Complement other businesses within the McAlister family.
Cons
- Open your restaurant in an approved location as defined by McAlister’s corporate office.
- Must invest significant funds in terms of capital and time.
- Achieving above-average sales volumes may take some time due to competition in the area.
Ultimately, it’s up to you to decide whether or not owning a This franchise is right for you. If it’s something that interests you, consider taking an in-depth look into all aspects involved in becoming an owner to help you make an informed decision.
McAlister’s Deli Franchise Success and Failure Rate
The below table will highlight the McAlister’s Deli’s franchise success and failure rate for the last 3 years. This will supplement your decision-making process.
| Year | Format | Start | End | Change |
| 2018 | Franchise Owned | 381 | 415 | +34 |
| Company Owned | 28 | 29 | +1 | |
| 2019 | Franchise Owned | 415 | 438 | +23 |
| Company Owned | 29 | 31 | +2 | |
| 2020 | Franchise Owned | 438 | 448 | +10 |
| Company Owned | 31 | 33 | +2 |
Competition Analysis of McAlister’s Deli Franchise
| McAlister’s Deli | Cost to Franchise | Franchisee Fees | Royalty + Ad fees | Expected Profit | Recoup of Capital | FD Rating |
| McAlister’s Deli | $401,655 to $1,459,265 | $35,000 | 5%+1.5% | $335,854 | 2-4 years | 3.4/5.0 |
| American Deli | $295,500 to $551,000 | $7,500-$10,000 | 3%+0.5% | $525,000 | 9 – 12 years | 3.3/5.0 |
| Old Chicago Pizza and Taproom Franchise | $1,399,000 – $2,177,000 | $40,000 | 4%+2% | $40.3 million | – | 3.9/5.0 |
| HWY 55
Franchise |
$196,055 – $433,055 | $25,000 | 5%+2% | $5.2 million | – | 3.6/5.0 |
| Pepe’s Mexican
Franchise |
$207,000 – $652,000 | $15,000 | 4%+1% | $5.9 million | – | 3.7/5.0 |
| Golden Corral
Franchise |
$2,168,419 – $6,602,5130 | $50,000 | 4%+2% | $195.1 million | – | 4.0/5.0 |
The Franchise Deck rating for the McAlister’s Deli franchise is 3.4/5.0.
Franchise Deck Analysis and Overview
So you’ve decided to take the plunge and invest in a This franchise. Great! But before you sign on the dotted line, you need to understand the risks and rewards that come with it. To help make this process easier, McAlister’s has put together an in-depth franchise deck that outlines all the important information you should consider before investing.
The Franchise Deck includes an analysis of potential risks such as competition in the foodservice industry, finding a suitable site, and recruiting and training staff. It also provides an overview of how to maximise your profits by choosing a prime location, getting involved with marketing programmes, and understanding any financial implications associated with franchising a McAlister’s Deli.
Understanding the full cost of investing in a This franchise is essential for making your decision. This includes such items as a franchise fee, start-up costs (inventory, equipment, etc.), ongoing fees (percentage of sales), and any other miscellaneous expenses such as insurance or legal costs.
Finally, the Franchise Deck will give you an overview of what it takes to be successful in operating a restaurant business by helping you understand the demands required of owning a This franchise, plus any pertinent local regulations and industry trends that could impact your profitability over the long term.
Conclusion: Should you buy a McAlister’s Deli franchise for sale?
So, should you buy a This franchise for sale? If you’re looking for an easy entry into the foodservice industry and the promise of a steady income, then the answer is yes. McAlister’s Deli Franchise is a long-standing brand that has been around for more than 30 years and has made its mark in the fast-casual restaurant sector. The process of buying a franchise can be daunting, but with McAlister’s Deli, it is straightforward, and they offer comprehensive training. Plus, with an initial investment starting at around $400k, it could be worth it if you have the capital.
In sum, there are many things to consider when deciding whether or not to buy a This franchise for sale; however, if you are looking to own a profitable business that offers amazing service and quality products, then taking the leap could very well be worth your while.
Entrepreneurs who want to open a franchise in the category casual restaurant franchise opportunities categories can look at
- Old Chicago Pizza and Taproom Franchise
- Hwy 55 Franchise
- Pepe’s Mexican Franchise
- Golden corral Franchise
- Hooters franchise
Frequently Asked Questions (FAQs)
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Is the McAlister’s Deli franchise profitable?
Yes, a This franchise can be profitable. On average, a franchise makes $1,865,861 in sales per year. However, profitability depends on various factors such as location, management, and market conditions.
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Can you make money owning a McAlister’s Deli?
Yes, you can potentially make money owning a This franchise. Success in the franchise business depends on factors like location, effective management, and market demand. It’s essential to conduct thorough research and have a solid business plan to increase your chances of success.
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Is McAlister’s Deli a franchise?
Yes, McAlister’s Deli is a franchise. They began franchising in 1994 and currently have over 430 franchise locations in the United States.
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How much is a McAlister’s Deli franchise?
The total investment for a This franchise ranges from $401,655 to $1,459,265 including a franchise fee of $35,000.
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How do McAlister’s Deli franchises make money?
This franchises make money by selling a variety of food items, such as sandwiches, salads, soups, and baked potatoes, as well as their popular sweet tea. They generate revenue through dine-in, takeout, and catering services, and they earn a percentage of the gross sales from each franchise location.
