McAlister's Deli vs Applebee's Franchise Comparison

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

Start-Up Costs and Fees

 
McAlister's Deli Franchise
Applebee's Franchise
Investment $398,000 - $2,094,200$2,009,038 - $8,267,250
Franchise Fee $15,000 - $35,000$35,000
Royalty Fee 5%4% initially, 5% possible after
Advertising Fee 3%not less than 4%
Year Founded 19891980
Year Franchised 19942014
Term Of Agreement 10 years +5+5+5-
Term Of Agreement 10 years +5+5+5-
Renewal Fee --


Business Experience Requirements

 
McAlister's Deli Franchise
Applebee's Franchise
Experience
  • General business experience
  • Our Ideal Franchise Partner -Is committed to a long term franchise relationship built on trust and respect -Knows how to build a brand -Understands that accessible pricing and value are core components of casual dining -Has prior hospitality experience or knowledge, particularly in critical areas like supply chain, quality assurance, real estate development, and marketing -Has or will have infrastructure dedicated to the development of our brand -Has material liquidity and net worth, with access to capital -Has a track record of developing multi-unit restaurant systems

    Financing Options

     
    McAlister's Deli Franchise
    Applebee's Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/Yes-/-
    Start-up Costs No/Yes-/-
    Equipment No/Yes-/-
    Inventory No/Yes-/-
    Receivables No/Yes-/-
    Payroll No/Yes-/-

    Training & Support

     
    McAlister's Deli Franchise
    Applebee's 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 Platform-
    Marketing Co-op Advertising Ad Templates Regional Advertising Social media SEO Website development Email marketing Loyalty program/app-
    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)

    -

    Expansion Plans

     
    McAlister's Deli Franchise
    Applebee's Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion NoYes

    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
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    About Applebee's

    Applebee's is the largest casual dining chain in the world with sales of $4.7 billion in 2006. Already the business staple of friendly casual dining, Applebee's is pursuing expansion opportunities, and is looking for individuals/firms with a serious interest in developing our successful brand internationally. For years Applebee's has embraced neighborhood culture, providing high-quality food and drinks in a friendly and informal atmosphere. Compared to the competition, Applebee's consistently delivers food to the consumer faster as well as more affordably. We plan to take this same mantra abroad, creating a warm, inviting dining experience designed around location-specific demographics and customer preference information.

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