How much does a McAlister's Deli franchise cost?
McAlister's Deli has two separate estimated initial investment ranges for traditional U.S. restaurants. The 2026 Franchise Disclosure Document lists $910,175 to $1,816,100 for an endcap or inline shopping-center Restaurant and $1,282,525 to $2,575,400 for a freestanding Restaurant, whether newly constructed or converted. These are total Item 7 ranges, not merely the Initial Franchise Fee.
The ranges cover one traditional Restaurant and include the $35,500 Initial Franchise Fee, build-out, equipment, signage, opening inventory, training-related costs and Additional Funds for three months.
Source: 2026 McAlister's Deli FDD, Item 7, pages 33–39. Nontraditional venues are not included in these tables.
- Legal franchisor
- McAlister's Franchisor SPV LLC
- Parent structure
- Indirect wholly owned subsidiary of GoTo Foods
- FDD date
- Issued March 27, 2026; amended May 11, 2026
- Cost sources
- Items 5, 6 and 7, with cost-relevant details from Items 8, 10, 11 and 17
- Formats covered
- Endcap or inline shopping-center Restaurant; freestanding Restaurant
- Information checked
- July 16, 2026; current qualification language was checked on the official McAlister's Deli franchise page
Key cost figures
Why is the freestanding range higher?
The main difference is the real-estate and construction contract. The endcap or inline table lists Construction and Build Out Costs of $412,400 to $775,500. The freestanding table lists $613,600 to $1,396,900 because a ground-up site can add the exterior shell, site work, parking lots and lighting.
Endcap or inline
The construction estimate is net of a $72,000 tenant improvement allowance at the low end. The high end assumes no tenant improvement allowance. One month of rent is included at $7,200 to $20,000.
Freestanding
The low construction case assumes a developer supplies site work beginning five feet outside the building walls. The high case makes the franchisee responsible for the building and site work. Buying unimproved land, estimated separately at $500,000 to $1,000,000, is not part of the Item 7 total.
The highest disclosed freestanding total is not simply a larger version of the inline budget. It reflects a different premises obligation. A buyer should identify who pays for shell construction, site work, utilities, parking and landlord allowances before applying either range to a proposed site.
What is included in the initial investment?
Item 7 covers the franchise right, premises work, operating assets and a limited working-capital period. The following tables keep the two Restaurant formats separate and preserve the official low and high bounds.
Premises, equipment and technology
| Item 7 expenditure | Endcap / inline | Freestanding |
|---|---|---|
| Construction and Build Out Costs | $412,400–$775,500 | $613,600–$1,396,900 |
| Permitting | $1,250–$30,700 | $6,000–$20,000 |
| Equipment Package | $224,900–$329,400 | $241,700–$344,100 |
| Millwork | $16,100–$66,500 | $38,000–$60,000 |
| Furniture | $20,000–$58,900 | $43,000–$51,000 |
| Menu Board, Graphics and Interior Signage | $9,600–$30,000 | $25,000–$30,000 |
| Exterior Signage | $21,000–$75,000 | $92,000–$132,600 |
| Computer System | $32,000–$66,500 | $22,000–$58,000 |
| Smallwares | $10,000–$29,400 | $20,000–$25,400 |
| TV/Music | $3,400–$11,500 | $3,000–$12,500 |
Pre-opening, training and working capital
| Item 7 expenditure | Endcap / inline | Freestanding |
|---|---|---|
| Architect/Engineer | $15,000–$35,000 | $24,400–$64,200 |
| Rent — one month | $7,200–$20,000 | $7,200–$20,000 |
| Grand Opening Marketing | $25,000–$27,000 | $25,000–$27,000 |
| Legal and Accounting Fees | $2,700–$5,500 | $3,000–$10,000 |
| Insurance | $1,925–$9,500 | $1,925–$9,500 |
| Misc. Opening Costs / Security Deposits | $2,500–$6,500 | $5,000–$33,000 |
| Travel and Living Expenses during Training | $26,200–$33,700 | $26,200–$33,700 |
| Opening Inventory | $18,500–$58,000 | $25,000–$100,000 |
| Additional Funds — 3 Months | $25,000–$53,000 | $25,000–$53,000 |
The Management Training Program Fee and On-Site Training Fee can each range from $0 to a disclosed maximum in Item 7. They are explained below because applicability depends on how many Restaurants the franchisee and its affiliates already operate.
What is paid to the franchisor before opening?
The standard Initial Franchise Fee is $35,500 and is due when the Franchise Agreement is signed. The FDD states that it is nonrefundable. Item 7 estimates that total payments to McAlister's Franchisor SPV LLC or its affiliates range from $35,851 to $118,158, depending largely on POS arrangements and whether training fees apply.
Item 5 also identifies a $2,500 Plan Review Fee for additional modified drawing sets after the included reviews, and a $2,500 On-Site Construction Inspection Fee for a second or later inspection. POS System opening payments depend on the selected program: the CapEx Program requires the first month's software license fee of $351 to $456; the HaaS Program requires an initial payment of $743 to $1,358 plus a $300 activation fee. A discretionary POS System Administration Fee is currently estimated at $1,500 to $2,000.
During calendar 2025, franchisees paid Initial Franchise Fees ranging from $10,000 to $35,500 because the franchisor may offer case-specific incentives. That historical range is not a published entitlement. The standard 2026 fee remains $35,500 unless a written reduction applies.
When does the cash leave the buyer's account?
The Item 7 total is paid in stages rather than in one closing payment. The Franchise Agreement fee comes first, premises and professional costs build as the site advances, most operating assets are paid before opening, and the Additional Funds allowance is spent through the first three months.
Agreement signing
Pay the $35,500 Initial Franchise Fee. Under a Multi-Unit Addendum, the franchisor may require all Initial Franchise Fees for the committed Restaurants at signing.
Site, design and construction
Pay rent as arranged, architect and engineer charges, permitting, build-out invoices and any later Plan Review Fee or additional inspection fee as those obligations arise.
Before opening
Fund the Equipment Package, millwork, furniture, signage, Computer System, smallwares, opening inventory, training travel, grand-opening activity and applicable training or POS payments.
Opening through month three
Use the included $25,000 to $53,000 Additional Funds estimate for payroll, rent, Royalty Fees, Advertising Contributions, inventory, taxes, licenses, deposits and other early operating expenses.
Additional Funds are already inside the official Total Initial Investment. Adding the $25,000 to $53,000 range again would double-count working capital.
Which fees continue after the Restaurant opens?
The principal continuing charges are the Royalty Fee, required marketing expenditures and technology-related fees. Percentage fees must be read using the FDD's defined Net Sales basis; they should not be converted into annual dollars without a verified sales figure.
| Continuing obligation | Current amount or basis | Timing | FDD source |
|---|---|---|---|
| Royalty Fee | 5% of Net Sales | Weekly | Item 6, p. 21 |
| Advertising Contribution | Currently 2% of Net Sales; may rise to 3% | Payment Due Date | Item 6, p. 21 |
| Local Marketing Obligation | At least 0.75% of Net Sales each calendar quarter | Quarterly | Item 6, p. 21 |
| Advertising Cooperative Contribution | Amount set by the applicable cooperative | Payment Due Date | Item 6, p. 21 |
| POS System License and Lease Fees | $351–$456 monthly under CapEx; $743–$1,358 monthly under HaaS | As incurred | Item 6, p. 25 |
| POS System Support Fee | $125–$250 per month | As incurred | Item 6, p. 26 |
| Online Ordering Fee | $141 per month plus 0.04% per transaction and subscribed-service charges | As incurred | Item 6, p. 28 |
| Ordering Support Fee | Currently 3% of the pre-tax transaction amount processed through the online ordering system | Payment Due Date | Item 6, p. 28 |
| Loyalty App Fee | Currently $66 per month | As incurred | Item 6, p. 27 |
| Learning Management System License Fee | Currently $210 per year | As incurred | Item 6, p. 24 |
Other operating charges include credit-card processing estimated at 2.5% to 5% of transaction amounts; gift-card program deductions of 7.75% or 12% for specified third-party retail gift cards plus $4.50 per Restaurant per month for processing; a Supply Chain Fee of $0.60 to $0.90 per case collected from certain Appointed Distributors; promotional-material charges; information-security and compliance costs; and possible Computer Systems, Back Office and Polling Software, Technology, Purchasing Program or master-insurance charges. The 2026 FDD states that the Technology Fee is not currently collected and that the Back Office and Polling Software Fee is not currently charged, although an estimated future amount of $100 to $200 per month is disclosed.
For delivery or catering orders processed through a third-party service, Net Sales includes the delivery and catering service charges and the full customer purchase price before third-party platform commissions, discounts, credits or coupons are deducted, subject to the exclusions listed in Item 6. That definition affects the Royalty Fee, Advertising Contribution and Local Marketing Obligation.
Which obligations arise only after a specific event?
Transfer, renewal, relocation, remodeling, training and default-related charges are separate from routine weekly and monthly fees. They matter because a future ownership change, lease event or required refresh can create a material cash obligation even when the Restaurant is already operating.
- TransferA Control Transfer costs 50% of the then-current Initial Franchise Fee; a related-party or non-Control Transfer costs 10%.
- RenewalThe Renewal Fee is 20% of the then-current Initial Franchise Fee, payable before signing the renewal Franchise Agreement.
- RelocationThe Relocation Fee is 10% of the then-current Initial Franchise Fee. A term extension adds $1,500 for each year extended.
- Refresh or remodelThe FDD requires a refresh every five years and a remodel every ten years. The current site-survey and design fee is $1,000 to $10,500, apart from the physical work.
- Lease eventsA lease renewal or extension review currently ranges from $500 to $2,000; missing requested lease documents can trigger $500 for each month or partial month.
- Additional trainingSubsequent Management Training is currently $250 per trainee per day; additional on-site assistance is $500 per trainer per day plus travel and living expenses.
- Development delayMissing or extending a Site Approval, Construction Start or Opening Deadline can trigger $2,500 per deadline.
- Audit or complianceAn audit after a Net Sales understatement of at least 2% is estimated at $1,000 to $4,000. Non-compliance can cost $25 to $500 per violation, and certain standards or legal failures can trigger up to $5,000 plus expenses.
- Late payment or reportingPast-due amounts bear the lesser of 1.5% per month or the legal maximum; late reporting is currently $50 per week, with insufficient-funds costs charged separately.
- Termination or defaultPotential obligations include liquidated damages, attorneys' fees, reimbursement of services, reinstatement, appraiser costs and de-identification costs plus a 15% administrative fee.
When do training fees increase?
The standard Management Training Program is included for the first two Restaurants, but the third and later Restaurants can carry additional fees. For a third or subsequent Restaurant, the current Management Training Program Fee is $15,000 per Restaurant for the Required Trainees in one session. Separate sessions, replacement trainees or additional trainees can cost $250 per trainee per day.
On-site opening training and assistance is included for the first three Restaurants. For a fourth or subsequent Restaurant, the current charge is $500 per trainer per day plus travel and living expenses. Item 7 uses a $0 low and a $34,000 high for the On-Site Training Fee, with the high assumption based on four trainers and 13 days including estimated travel and living costs.
The Item 7 training-travel range of $26,200 to $33,700 assumes four Required Trainees attend 25 days of Management Training. Wages and other trainee expenses are also the franchisee's responsibility. The Additional Funds footnote includes employee salaries, wages and benefits, including payroll for staff pre-opening training, but it does not expressly state that a franchisee salary or owner draw is included.
How much liquid capital and net worth does McAlister's require?
The current official McAlister's Deli franchise page states a minimum of $425,000 in Liquid Capital and $1,000,000 in Net Worth. Those qualifications were checked July 16, 2026. The numerical thresholds are not stated in Items 5 through 7 or Item 10 of the 2026 FDD, so they are official supplemental facts rather than components of the Item 7 total.
The distinction matters: Liquid Capital is the readily available funding threshold identified by the franchisor, Net Worth is an assets-minus-liabilities measure, and neither figure replaces the applicable Total Initial Investment range. See the official McAlister's Deli financial requirements.
The FDD does not offer direct financing. Item 10 says the franchisor may refer candidates to unaffiliated leasing or financing companies, does not receive lender fees, does not guarantee the obligation and may use an advisor to help franchisees seek financing. It also states that McAlister's participates in the SBA Franchise Directory and may modify the Franchise Agreement when necessary for certain SBA programs. General program information is available from the U.S. Small Business Administration's 7(a) loan program, but participation does not guarantee approval or specific loan terms.
What can still move the budget outside the disclosed range?
The official range is a format-specific estimate, not a fixed project price. Site condition, market costs, tenant allowances, ownership of real estate, local permits, insurance exposure, equipment configuration and multi-unit training status can change the cash requirement.
- Confirm the exact format.Do not apply the endcap or inline range to a freestanding site. The FDD says nontraditional venues will likely have lower expenditures, but it gives no separate nontraditional Item 7 range.
- Reconcile the construction scope.Identify landlord work, developer work, tenant improvement allowances, shell condition, drive-thru work and site-work responsibility.
- Separate land from Item 7.The cost of buying unimproved freestanding property is not included in the official total.
- Price delivery assets separately.A branded catering vehicle is not in the Equipment Package estimate; the FDD estimates about $25,000 to $35,000 to buy or $500 to $700 per month to lease when one is needed.
- Check lease security deposits.The Misc. Opening Costs / Security Deposits line includes utility deposits but excludes a Restaurant lease security deposit.
- Identify training status.The third Restaurant can add the Management Training Program Fee, and the fourth can add On-Site Training and Assistance costs.
- Verify current vendor quotations.Equipment, POS, software, credit-card, gift-card, online-ordering and supply-chain amounts can change under approved-vendor contracts.
- Review the complete current disclosure.The Federal Trade Commission's franchise buying guidance explains the pre-sale disclosure process; the controlling numbers and obligations remain those in the current FDD and signed agreements.
The unresolved question is not only “Can the buyer fund the Item 7 range?” It is also “Does the proposed site match the assumptions behind that range?” The lease, development scope and current approved-supplier quotations should be reconciled against Item 7 before capital is committed.
What is the practical capital takeaway?
A prospective U.S. franchisee should start with the correct 2026 format range: $910,175 to $1,816,100 for endcap or inline, or $1,282,525 to $2,575,400 for freestanding. The $35,500 Initial Franchise Fee is only one component. Construction and Build Out Costs are the largest source of variation, while Additional Funds of $25,000 to $53,000 are already included for the first three months.
After opening, the recurring cost contract begins with a 5% Royalty Fee, a current 2% Advertising Contribution and at least 0.75% quarterly Local Marketing Obligation, plus POS, ordering, loyalty, payment-processing and other system fees. The current official qualification thresholds—$425,000 in Liquid Capital and $1,000,000 in Net Worth—remain separate from Total Initial Investment and do not reduce the opening-cost range.