McAlister’s Deli

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McAlister’s Deli

McAlister’s Deli Franchise FDD, Costs & Fees (2025)

Deli-style restaurant franchise serving sandwiches, salads, and soups, offering a variety of flavorful options made with quality ingredients, providing a casual and inviting dining experience.

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.

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:

Restaurant Type Initial Investment Range
Endcap or Inline Shopping Center Location $1,044,975 to $1,610,700
Newly-Constructed Freestanding Location $1,247,725 to $2,442,200

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$578,800 to $1,317,800
Permitting$6,000 to $15,000
Equipment Package$241,700 to $298,000
Millwork$38,000 to $60,000
Furniture$43,000 to $51,000
Menu Board, Graphics and Interior Signage$25,000 to $28,000
Exterior Signage$92,000 to $133,000
Computer System$22,000 to $58,000
Smallwares$20,000 to $25,400
TV/Music$3,000 to $12,500
Architect/Engineer$24,400 to $64,200
Rent$7,200 to $18,600
Grand Opening Marketing$25,000 to $27,000
Legal and Accounting Fees$3,000 to $10,000
Insurance$1,925 to $9,500
Misc. Opening Costs / Security Deposits$5,000 to $33,000
Management Training Program Fee$0 to $25,000
Travel and Living Expenses during Training$26,200 to $33,700
On-Site Training Fee$0 to $34,000
Opening Inventory$25,000 to $100,000
Additional Funds – 3 Months$25,000 to $53,000
Total Initial Investment$1,247,725 to $2,442,200

McAlister’s Deli offers 2 types of franchises:

Restaurant Type Initial Investment Range
Endcap or Inline Shopping Center Location $1,044,975 to $1,610,700
Newly-Constructed Freestanding Location $1,247,725 to $2,442,200

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$578,800 to $1,317,800
Permitting$6,000 to $15,000
Equipment Package$241,700 to $298,000
Millwork$38,000 to $60,000
Furniture$43,000 to $51,000
Menu Board, Graphics and Interior Signage$25,000 to $28,000
Exterior Signage$92,000 to $133,000
Computer System$22,000 to $58,000
Smallwares$20,000 to $25,400
TV/Music$3,000 to $12,500
Architect/Engineer$24,400 to $64,200
Rent$7,200 to $18,600
Grand Opening Marketing$25,000 to $27,000
Legal and Accounting Fees$3,000 to $10,000
Insurance$1,925 to $9,500
Misc. Opening Costs / Security Deposits$5,000 to $33,000
Management Training Program Fee$0 to $25,000
Travel and Living Expenses during Training$26,200 to $33,700
On-Site Training Fee$0 to $34,000
Opening Inventory$25,000 to $100,000
Additional Funds – 3 Months$25,000 to $53,000
Total Initial Investment$1,247,725 to $2,442,200

Franchise Disclosure Document

Number of units

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.

Competitors

Below are some of

McAlister’s Deli

key competitors in the

Sandwich

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Upgrade
Gross Profit
Upgrade
EBITDA
Upgrade

524

New
+
7%
7%

$35,500

$1,045,000

$2,442,000

n.a.

$1,792,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Competitors

D'Angelo Grilled Sandwiches

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Franchisees

?

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+
-12%
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Investment

?

$411,000 - $737,000

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Franchisees

?

10
+
-9%
-9%
Investment

?

$183,000 - $370,000

Erik's Delicafe

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Franchisees

?

26
+
0%
0%
Investment

?

$199,000 - $407,000

Lennys Grill & Subs

Lennys Grill & Subs is a fast-casual franchise offering grilled sandwiches, subs, salads, and soups, serving lunch and dinner crowds, and known for freshly prepared items, quality ingredients, and strong local presence.

Franchisees

?

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+
4%
4%
Investment

?

$283,000 - $577,000

Cheesy Street Grill

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Franchisees

?

2
+
0%
0%
Investment

?

$267,000 - $426,000

Crepe Delicious

Crepe Delicious is a café franchise offering sweet and savory crepes, waffles, smoothies, and coffee, serving breakfast and lunch customers, and known for fresh ingredients, customizable menu, and café experience in retail venues.

Franchisees

?

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+
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Investment

?

$178,000 - $978,000