McAlister's Deli vs Friendly's Restaurants Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of McAlister's Deli vs Friendly's Restaurants including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
McAlister's Deli Franchise
Friendly's Restaurants Franchise
Investment $398,000 - $2,094,200$498,500 - $1,950,000
Franchise Fee $15,000 - $35,000$30,000 - $35,000
Royalty Fee 5%4%
Advertising Fee 3%3.5%
Year Founded 19891935
Year Franchised 19941996
Term Of Agreement 10 years +5+5+520 years
Term Of Agreement 10 years +5+5+520 years
Renewal Fee -$5K


Business Experience Requirements
 
McAlister's Deli Franchise
Friendly's Restaurants Franchise
Experience
  • General business experience

  • Industry experience
    		•

    Financing Options
     
    McAlister's Deli Franchise
    Friendly's Restaurants Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/No
    Start-up Costs No/YesNo/No
    Equipment No/YesNo/No
    Inventory No/YesNo/No
    Receivables No/YesNo/No
    Payroll No/YesNo/No

    Training & Support
     
    McAlister's Deli Franchise
    Friendly's Restaurants Franchise
    Training On-The-Job Training: 206 hours Classroom Training: 45 hours -
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet PlatformNewsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations
    Marketing Co-op Advertising Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/appAd slicks, National media
    Operations Franchisees required to buy multiple units/master licenses; 95% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 40

    Absentee ownership of franchise is allowed. (66% of current franchisees are owner/operators)

    		 Franchisees required to buy multiple units/master licenses; 62% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    Expansion Plans
     
    McAlister's Deli Franchise
    Friendly's Restaurants Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion NoNo

    Company Overviews

    About McAlister's Deli

    Founder Don Newcomb's goal when he launched McAlister's Deli in 1989 was to create a 'gourmet deli with Southern charm.' The restaurants serve more than 90 different menu items, including sandwiches, salads, super-stuffed baked potatoes, appetizers, desserts and kid's meals. Customers make their selections at the counter, receive their appetizers and drinks and then sit wherever they choose, while roving servers bring their food and drink refills. McAlister's has grown to more than 350 franchised units.

    The total investment necessary to begin operation of a franchised McAlister’s Deli Restaurant (“Traditional Restaurant”) ranges from $927,900 to $2,094,200. This includes $35,000 to $35,400 that must be paid to the franchisor or their affiliates.
    The total investment necessary to begin operation of a franchised McAlister’s Express Restaurant (“Express Restaurant”) is $398,000 to $607,850. This includes $15,000 to $15,400 that must be paid to the franchisor or their affiliates.
    Veteran Incentives  $5,000 off franchise fee
    "Entrepreneur
    #72 in Franchise 500 for 2020.
    #47 in Franchise 500 for 2021.



    About Friendly's Restaurants

    In Springfield, Massachusetts at the height of the Great Depression in 1935, 20 year-old Prestley Blake and his 18 year-old brother Curtis opened an ice cream shop called 'Friendly' that served double-dip cones for 5 cents. The brothers opened a second shop five years later in West Springfield, Massachusetts and added food to the menu. Within a decade, locations opened throughout western Massachusetts and Connecticut. In 1988 Donald N. Smith, the company's current CEO, purchased the company and a year later added an 's' to the name, making it 'Friendly's.'

    In May 2000, Friendly's introduced a new food and dessert menu featuring colossal burgers, sandwich wraps, splits, sundaes and Cyclones. Friendly's produces 10 million snack cups and 230,000 gallons of fudge every year. In addition to its restaurants and cafes, Friendly's manufactures a complete line of frozen desserts.