At McAlister's Deli, you will incur an estimated investment cost for each individual restaurant. These cost may vary as described below:
- Initial Franchise Fee: $40,000*
- Ongoing Royalties: 5% of Gross Sales
- Advertising Fee: Up to 3% of Gross Sales
- Initial Training Fee: No Charge**
- Initial Term of Agreement: 10 years for traditional location w/ three 5 year renewals
* Area Development Agreements-$35,000 for 1st unit, plus 20% per each additional unit.
** Training Program is free. However, lodging, food, and other travel expenses necessary to attend the training course are the responsibility of the individual franchisee.
Existing Location:
| Initial Franchise Fee | $ | 20,000 | – | $ | 40,000 |
| Rent | $ | 18,000 | – | $ | 40,000 |
| Leasehold Improvements | $ | 175,000 | – | $ | 400,000 |
| Furniture, Fixtures, Equipment | $ | 120,000 | – | $ | 175,000 |
| Signage | $ | 20,000 | – | $ | 40,000 |
| POS System | $ | 15,000 | – | $ | 35,000 |
| Initial Inventory | $ | 8,000 | – | $ | 15,000 |
| Insurance | $ | 2,500 | – | $ | 10,000 |
| Training | $ | 10,000 | – | $ | 20,000 |
| Grand Opening Advertising | $ | 4,000 | – | $ | 4,000 |
| Additional Funds | $ | 25,000 | – | $ | 50,000 |
| Total | $ | 417,500 | – | $ | 829,000 |
New Construction:
| Initial Franchise Fee | $ | 20,000 | – | $ | 40,000 |
| Land | $ | 250,000 | – | $ | 500,000 |
| Site Work & Parking Lot | $ | 60,000 | – | $ | 125,000 |
| Building & Pad | $ | 360,000 | – | $ | 465,000 |
| Furniture, Fixtures, Equipment | $ | 120,000 | – | $ | 200,000 |
| Signage | $ | 25,000 | – | $ | 60,000 |
| POS System | $ | 15,000 | – | $ | 35,000 |
| Initial Inventory | $ | 8,000 | – | $ | 15,000 |
| Insurance | $ | 2,500 | – | $ | 10,000 |
| Training | $ | 10,000 | – | $ | 20,000 |
| Grand Opening Advertising | $ | 4,000 | – | $ | 4,000 |
| Additional Funds | $ | 25,000 | – | $ | 50,000 |
| Total | $ | 899,500 | – | $ | 1,524,000 |