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McAlister's Deli

2015 Franchise 500
#161
At a Glance

Products & Services: Sandwiches, salads, baked potatoes

Number of Locations: 327

Total Investment: $538K - $1.5M

Founded: 1989

Began Franchising: 1994

About McAlister's Deli

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 sandwiches, salads, 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.

Franchise Units

Year U.S. Canadian International Company Owned
2014 281 0 0 46
2013 272 0 0 47
2012 274 0 0 38
2011 274 0 0 34
Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S.
Direct Capital

Startup Costs, Ongoing Fees and Financing

Total Investment: $538,000 - $1,464,500
Franchise Fee: $30,000 - $35,000
Ongoing Royalty Fee: 5%
Term of Franchise Agreement: 20 years, renewable
Veteran Incentives: $5,000 off franchise fee
Financial Requirements
Net Worth: $1,500,000
Liquid Cash Available: $750,000
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).
Direct Capital
Financing Type In-House Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

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 Ranking History

Franchise 500®: #161 (2015), #164 (2014),

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