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FDD Talk 2013: Average Net Sales for Traditional McAlister’s Deli Restaurants (2013 FDD)

by Franchise Chatter on September 19, 2013

in Franchise Earnings, Sandwich Franchise



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Highlights of McAlister’s Deli’s Item 19 Financial Performance Representations (2013 FDD) – Part 1

  • McAlister’s Restaurants are fast-casual restaurants providing counter service with carry-out and on-premises dining and featuring a line of deli foods, including hot and cold deli sandwiches, baked potatoes, salads, soups, desserts, iced tea, and other food and beverage products, all prepared in accordance with specified recipes and procedures (“Menu Items”).
  • There are two types of McAlister’s Restaurants. A Traditional Restaurant is a full size restaurant that offers a full line of Menu Items. An Express Restaurant is designed for a non-traditional location and may offer a limited number of Menu Items.
  • The total investment necessary to begin operation of a franchised McAlister’s Traditional Restaurant ranges from $536,000 to $1,383,500. The total investment necessary to begin operation of a franchised McAlister’s Express Restaurant ranges from $177,000 to $389,000.

Statement of Average Net Sales for Traditional Restaurants, Fiscal Year 2012

  • McAlister's Deli PhotoThe average net sales information represents the fiscal year 2012 financial performance of 32 company-owned Traditional Restaurants based on the company’s profit and loss statements and 254 franchised Traditional Restaurants based on the weekly sales reports submitted to the franchisor by franchisees.
  • While there were 278 franchised McAlister’s Restaurants operating at the end of fiscal year 2012, 12 franchised Traditional Restaurants were excluded because they did not operate for at least 12 months during fiscal year 2012, and 12 franchised Express Restaurants were excluded.
  • While there were 34 company-owned Traditional Restaurants operating at the end of fiscal year 2012, none were excluded because they did not operate for at least 12 months during fiscal year 2012, and 2 company-owned Express Restaurants were excluded.
  • The characteristics of the restaurants used in the financial performance representation are substantially similar to the Traditional Restaurants being offered in the disclosure document.
  • Your performance will be significantly impacted by your personal business, marketing, and management skills, your financial investment capabilities, and your willingness to work hard and follow the McAlister’s System. Many factors that may significantly impact financial performance are unique to each restaurant, including location, physical size and layout, market penetration, local market conditions, and other factors.


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