McAlister's Deli

Founded: 1989 Franchising since: 1994
Founder Don Newcomb's goal when he launched McAlister's Deli in 1989 was to create a "gourmet deli with Southern charm."

The restaurants serve more than 90 different menu items, including sandwiches, salads, super-stuffed baked potatoes, appetizers, desserts and kid's meals. Customers make their selections at the counter, receive their appetizers and drinks and then sit wherever they choose, while roving servers bring their food and drink refills.

McAlister's has grown to more than 45 franchised units throughout the South and Midwest.

731 S. Pear Orchard Rd., #51 Ridgeland, Mississippi 39157

Phone: (888)855-3354

Franchisor is a privately-held company with 45 employee(s); 10 employee(s) in franchise department.

Franchise Growth

Year	U.S. Franchises	Canadian Franchises	Foreign Franchises	Company Owned
2008	242	0	0	32
2007	216	0	0	21
2006	184	0	0	22
2005	147	0	0	23

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, United states, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming
Worldwide

Exclusive territories available.
Territory size: 30,000 population

Special Programs
Although McAlisterÂ’s has a posted no-tipping policy, customers occasionally leave tips, which are then collected and donated to local charities.

Total investment: $417.5K-1.6M Franchise fee: $20K-40K

Ongoing royalty fee: 5% Term of agreement: 10 years, renewable

Type of Financing Available

	In-House	Third Party
Franchise Fee	No	Yes
Startup Costs	No	Yes
Equipment	No	Yes
Inventory	No	Yes
Accounts Receivable	No	No
Payroll	No	No

Third-party financing source(s): GE Capital, Comerica Bank, Irwin Franchise Finance

Qualifications
Net worth requirement: $1M
Cash liquidity requirement: $500K
Business Experience:

• General business experience

Operations

• 95% of all franchisees own more than one unit
• Number of employees needed to run franchised unit: 40
• Absentee ownership of franchise is allowed. (66% of current franchisees are owner/operators)

Training

• Available at headquarters: 10 weeks
• At franchisee's location: 10 days

Ongoing Support

• Newsletter
• Meetings
• Toll-free phone line
• Grand opening
• Internet
• Security/safety procedures
• Field operations/evaluations
• Purchasing cooperatives

Marketing Support

• Ad slicks
• Regional advertising

Franchise 500® rank:
#136 (2009); #141 (2008); #142 (2007); #158 (2006); #179 (2005);

America's Top Global Franchises:
#105 (2009); #127 (2005);