McAlister's Deli Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,044,975 - $2,442,200
Franchise Fee
$15,000
Min Cash Required
$25,000
Total US Locations
560
Business Summary
McAlister's Deli restaurants are fast-casual dining establishments that offer counter service, on-premises dining, and take-out options. They feature a variety of deli foods, including hot and cold sandwiches, baked potatoes, salads, soups, desserts, iced tea, and other food and beverage products.
Corporate History
McAlister's Franchisor SPV LLC was organized on February 2, 2017, and began offering franchises in April 2017. Its predecessor, McAlister's LLC (ML), was originally incorporated on March 26, 1999, as Restaurant Acquisition Company, later changing its name to McAlister's Corporation and then McAlister's LLC. ML offered McAlister's franchises from January 1991 to April 2017. The brand became affiliated with Roark Capital Management, LLC in July 2005 and GoTo Foods in October 2013. McAlister's Franchisor SPV LLC is now an indirect, wholly-owned subsidiary of GoTo Foods LLC.
Financial Overview
Investment Range
$1,044,975 - $2,442,200
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$35,500
Minimum Cash Required
$25,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$859,800
Equipment Costs (High)
$1,954,300
Working Capital
$39,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financing Details
McAlister's Franchisor SPV LLC does not offer any direct or indirect financing for equipment, initial inventory, or any other purpose. However, McAlister's Franchisor SPV LLC may refer franchisees to third-party leasing or financing companies, but it does not receive any financial benefits from these lenders and will not guarantee any loans. The franchisor also participates in the SBA's Franchise Directory and may adjust the Franchise Agreement to help franchisees access SBA loan programs. Additionally, McAlister's Franchisor SPV LLC may hire an advisor to help franchisees secure financing, but franchisees are not required to use this service, and the franchisor is not responsible for the advisor's services.
Performance Metrics
Total US Locations
560
Franchised Units
524
Corporate Units
36
Avg Square Footage
3,300
Franchising Since
1991
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
3
Litigation Summary
McAlister's Franchisor SPV LLC reports that its affiliates, Arby's Restaurant Group, Inc. and Dunkin' Brands, Inc., settled lawsuits with several state Attorneys General regarding "no-poaching" provisions in their franchise agreements, which prohibited franchisors and franchisees from soliciting each other's employees. These settlements, which involved no monetary payments but required removal/non-enforcement of the provisions and notification to employees, occurred in 2019. Additionally, Dunkin' Brands, Inc. settled a lawsuit with the New York Attorney General in 2020 concerning credential-stuffing cyberattacks, agreeing to pay penalties and maintain an information security program. McAlister's Franchisor SPV LLC itself has not been involved in any litigation required to be disclosed. All disclosed litigation involves affiliates and occurred prior to March 28, 2022 (the 3-year cutoff from the FDD issuance date of March 28, 2025).
Bankruptcy History
McAlister's Franchisor SPV LLC has no bankruptcy history to disclose.
Agreement Terms
Initial Term
20 years
Renewal Term
20 years
Renewal Conditions
To renew, McAlister's Deli franchisees must meet several conditions for one additional 20-year term. Franchisees need to request a renewal in writing between 6 and 12 months before the initial term expires, complete a renewal application, and have substantially and timely complied with all terms of their franchise agreement and other agreements, with no existing defaults. They must agree to make significant capital expenditures for a remodel within six months of the renewal term starting. Franchisees are also required to secure the right to operate at their current approved location for the entire renewal term, or relocate the restaurant if the current location does not meet current brand standards. Finally, they must sign McAlister's Deli's then-current franchise agreement (which may have materially different terms) and pay a renewal fee equal to 20% of the then-current initial franchise fee. Franchisees and their guarantors and owners must also sign a general release of all claims against McAlister's Deli and its affiliates.
Training & Support Program
Franchisor Assistance
McAlister's Deli provides franchisees with a range of assistance and support. Before opening, the franchisor reviews the proposed location, provides architectural plans and specifications for the restaurant build-out, furnishes specifications for required goods, identifies approved suppliers, and provides access to its confidential operations manuals. It also provides an initial management training program for required trainees and approves the grand opening advertising materials and the overall restaurant opening. After opening, McAlister's Deli continues to identify approved suppliers, reviews any proposed new suppliers or products, and manages the advertising fund. It updates its standards and manuals, reviews franchisee advertising, and provides support services as deemed advisable, which can be on-site, off-site, or by phone. The franchisor also reviews relocation and remodeling plans and general contractors.
Initial Training Hours
300
Training Location
Online modules and certified training locations (which may include corporate headquarters in Atlanta, Georgia or franchisee-operated locations).
Ongoing Support
After a McAlister's Deli restaurant opens, the franchisor continues to identify approved suppliers for goods and reviews any new proposed suppliers or products. The franchisor manages the advertising fund and provides updates to its operational standards and manuals. McAlister's Deli reviews franchisee advertising and furnishes support services as it deems advisable, which can be delivered on-site, off-site, by telephone, or through other means, with timing dependent on personnel availability. Franchisees can also request additional on-site training or assistance for a fee, and the franchisor may require it if deemed necessary. McAlister's Deli also conducts conferences, conventions, programs, webinars, teleconferences, or additional training sessions, which may be mandatory for key personnel and incur a reasonable fee. Managers must also re-certify annually through a learning management system.
Franchise Requirements
Ideal Candidate Profile
McAlister's Deli seeks franchisees who are at least 18 years old and possess management experience, ideally as a restaurant owner or operator. Candidates must pass a financial credit check, potentially a basic English competency test, an operations interview, and a criminal background check. The franchisor does not recommend this investment for absentee owners. Franchisees must appoint a Primary Contact who will directly supervise operations, hold at least a 5% ownership interest (or have an agreement to reach it), and be accepted by the franchisor.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
0.5
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
McAlister's Deli's territory size is determined on a case-by-case basis. The franchisor considers factors such as current and projected market demand, demographics, population, median household income, the presence of other businesses, competitor locations, traffic patterns, and visibility. The Area of Protection may be defined as a specific mile radius from the accepted location. There is no stated minimum size for an Area of Protection.
Staffing Notes
McAlister's Deli requires franchisees to employ at least four full-time Managers who are dedicated to the restaurant, have day-to-day management responsibilities, and exercise on-premises supervision. These Managers must successfully complete the franchisor's Management Training Program. If the franchisee and its affiliates operate four or more restaurants, McAlister's Deli may also require the appointment of one or more Directors of Operations to supervise multiple restaurants, who must also meet specific standards and complete the Management Training Program. Franchisees must notify the franchisor immediately if a Primary Contact, Manager, or Director of Operations dies, becomes disabled, or is terminated, and must designate a successor within 30 days.