McAlister's Deli vs Applejack's Franchise Comparison

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

Start-Up Costs and Fees

 
McAlister's Deli Franchise
Applejack's Franchise
Investment $398,000 - $2,094,200$250,000 - $275,000
Franchise Fee $15,000 - $35,000$25,000
Royalty Fee 5%4%
Advertising Fee 3%2%
Year Founded 19891999
Year Franchised 19942004
Term Of Agreement 10 years +5+5+510 years
Term Of Agreement 10 years +5+5+510 years
Renewal Fee --


Business Experience Requirements

 
McAlister's Deli Franchise
Applejack's Franchise
Experience
  • General business experience
  • -

    Financing Options

     
    McAlister's Deli Franchise
    Applejack'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
    Applejack'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
    Applejack's Franchise
    US Expansion Yes-
    Canada Expansion No-
    International Expansion No-

    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 Applejack's

    As an effective business operator, you wish to minimize risk and maximize profit. That is exactly what successful franchising is all about. Franchised businesses have a higher success rate than independent businesses. This is a fact. It is generally accepted that an estimated 40% of all non-franchised businesses do not make it to the end of their first year of operation, and 80% will fail within their first five years of operation. And even the 20% that do manage to survive are not safe, as 90% of them will fail within the next five years. In most cases this is not due to lack of revenues and its mostly based on lack of experience, support and management skills. By joining a Franchise, franchisees can benefit from the Brand marketing, purchasing power and management expertise offered by well-established franchisors. This is particularly attractive to those persons entering the highly competitive food service industry for the first time. As a result of the positive interaction between franchisee and franchisor, our restaurant owner/operators are much more likely to be financially successful than were they to enter the industry as independent restaurateurs.