McAlister’s Deli Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$35,500
Investment required
$1,054,000 - $2,489,000
Royalty fee
5.00%

McAlister's Deli: Redefining Southern Hospitality in Fast-Casual Dining

Established in 1989 in Oxford, Mississippi, McAlister's Deli has evolved from a single outlet into a significant player in the fast-casual dining industry. With its current headquarters in Atlanta, Georgia, the brand is now a part of GoTo Foods(formerly  Focus Brands), a prominent developer of global multi-channel foodservice brands.

McAlister's Deli is celebrated for its diverse menu, which features substantial sandwiches, large spuds, soups, salads, desserts, and its iconic sweet tea. This varied selection, combined with genuine Southern hospitality, sets McAlister's apart in the market.

The brand distinguishes itself through its dedication to fostering a warm and inviting environment, making every guest feel like part of the McAlister's family. This focus on creating a homely atmosphere reflects the brand's small-town roots and is a fundamental part of its identity. Operationally, McAlister's Deli maintains efficiency by eliminating the need for grills or fryers, simplifying kitchen processes, and potentially lowering costs.

McAlister's Deli provides extensive support to its franchisees, including assistance with real estate, construction, training, operations, marketing, and supply chain management. This robust support system is designed to ensure the success and smooth functioning of each franchise location.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

McAlister’s Deli offers 2 types of franchises:

Franchise Option Initial Investment
McAlister’s Deli Restaurant at an Endcap or Inline Shopping Center Location $1,053,925 to $1,715,550
McAlister’s Deli Restaurant at a Newly-Constructed Freestanding Location $1,417,825 to $2,488,500

We are summarizing below the main costs associated with opening a McAlister’s Deli Restaurant at a Newly-Constructed Freestanding Location.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

McAlister’s Deli Restaurant at a Newly-Constructed Freestanding Location

Type of Expenditure Amount
Initial Franchise Fee $35,500
Construction and Build Out Costs $753,200 - $1,373,000
Permitting $6,000 - $15,000
Equipment Package $257,400 - $294,000
Millwork $38,000 - $60,000
Furniture $29,000 - $55,000
Menu Board, Graphics and Interior Signage $25,000 - $28,000
Exterior Signage $92,200 - $135,000
Computer System $22,000 - $58,000
Smallwares $20,000 - $30,200
TV/Music $1,200 - $6,000
Architect/Engineer $20,000 - $55,000
Rent $7,200 - $18,600
Grand Opening Marketing $25,000 - $27,000
Legal and Accounting Fees $3,000 - $10,000
Insurance $1,925 - $9,500
Misc. Opening Costs/ Security Deposits $5,000 - $33,000
Management Training Program Fee $0 - $25,000
Travel and Living Expenses during Training $26,200 - $33,700
On-Site Training Fee $0 - $34,000
Opening Inventory $25,000 - $100,000
Additional Funds - 3 Months $25,000 - $53,000
Total Initial Investment $1,417,825 - $2,488,500

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Number of units

2024
Franchised units

472

492

506

Company-owned units

33

32

33

Total units

505

524

539

Franchise Disclosure Document

Training 

McAlister’s Deli provides a comprehensive training program for its franchisees, essential for those aiming to manage a McAlister’s Deli franchise effectively. This training ensures franchisees acquire the necessary knowledge and skills.

The program is specifically designed to acquaint franchisees with McAlister’s Deli's unique operational techniques. It encompasses a broad range of topics, including maintaining the brand's operational standards and mastering the details of the menu.

In addition to the initial training, McAlister’s Deli offers ongoing operational training programs. These programs are intended to reinforce and update the brand's operational standards, ensuring uniformity across all locations.

Territory Protection

Franchisees are authorized to operate a McAlister’s Deli Restaurant within a specific "Designated Area," as outlined in the Franchise Agreement. This designated territory is solely intended for site selection purposes.

If franchisees breach the Franchise Agreement and fail to rectify the breach within the specified cure period, McAlister’s Deli reserves the right to reduce or eliminate the franchisee's Area of Protection.

The Area of Protection remains unchanged until the Franchise Agreement expires or is terminated. The territorial protection provided to franchisees is not contingent upon achieving certain sales targets, market penetration, or other criteria, except for adherence to the Franchise Agreement.

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