They appreciate a menu served with genuine care. You appreciate a brand built on hospitality and values.

Note 1:  A Traditional Restaurant may be an end-cap or freestanding location.  We expect that you will buy or lease unimproved property and construct the Restaurant.  The space required for a Traditional Restaurant ranges from 3,000 to 4,000 square feet.  The space required for an Express Restaurant ranges from 500 to 1,500 square feet.  The above charts are estimates of a franchisee’s total initial investment in a Restaurant that falls within the square footage ranges discussed above.  Local building codes may require that a Traditional Restaurant be placed on a larger lot.  The cost of commercial land, whether you lease or buy, may vary considerably depending upon the location and conditions affecting the market for commercial property.

 

With respect to a freestanding Traditional Restaurant, the purchase of unimproved property of the size required may range from $500,000 to $1,000,000.  Alternatively, if you lease the real property and build the Restaurant, our experience is that ground rent may range from $50,000 to $80,000 per year.  For a turn-key deal, our experience is that rent likely will be $50 per square foot or more for a 3,600 square foot building on an acre of land.

With respect to a Traditional Restaurant at an end-cap or inline location, our experience is that the rent may range from $23 to $40 per square foot, including pass-through costs such as common area maintenance, real estate taxes and property insurance.

Note 2:  The cost of construction and leasehold improvements depends upon the size and condition of the location of the Restaurant, the nature and extent of leasehold improvements required, the local cost of contract work and the location of the Restaurant.  The estimates include the cost of reasonable renovation or leasehold improvements that comply with our standards and specifications.  If you elect to go beyond our standards and specifications, your expenses may be higher.  Your landlord may supply the leasehold improvements in a build-to-suit transaction.

Note 3:  You must purchase various equipment and fixtures for the operation of the Restaurant as specified in the Manuals.  You must purchase or lease approved brands and models of fixtures from approved suppliers.  The cost of the furniture, fixtures and equipment (including office equipment, sound systems, smallwares, menu boards and decor) will depend on the financing terms available, the size of the Restaurant, brands purchased and other factors.

Note 4:  Signage includes interior and exterior signs and awnings that bear the Marks.  The cost of signage may vary depending on the type, size and location of the signs and may also be affected by local restrictions.

Note 5:  You must purchase or lease a Computer System for use in the Restaurant as described in Items 8 and 11.

Note 6:  You must obtain and maintain during the term of your Franchise Agreement, at your expense, a comprehensive business insurance program, including property, commercial general liability, automobile liability, business property, umbrella, and workers’ compensation insurance. In addition, we may require you to maintain employment practices liability insurance and cyber liability insurance, with limits of up to $1,000,000.  The types and minimum amounts of insurance coverage that we currently require are described in Section 13.2 of the Franchise Agreement, but are subject to change.  This figure estimates the cost of your insurance premiums for your first year of operation based on our minimum requirements.  Your cost of insurance will vary depending on your Restaurant location, the claims experience of commercial businesses in your area, and your prior insurance claim experience.  The lower figure assumes 25% down on a yearly amount.  The higher figure would apply in areas prone to hurricanes or other extraordinary natural disasters.

Note 7:  You must arrange transportation and pay the expenses for meals and lodging for you and your employees attending the Initial Training Program.  The amount you spend will depend on the distance you travel and the type of accommodations you choose.  The estimate contemplates attendance by 2 people for an Express Restaurant and 4 people for a Traditional Restaurant traveling to our headquarters or other location that we designate for approximately 5 to 6 weeks.

Note 8:  These costs include utility deposits, installation of telephones, business licenses, security deposits and other prepaid expenses.  These estimates reflect the typical cost of these types of expenses.  However, these expenses can vary dramatically depending on the location of the Restaurant and may substantially exceed these estimates.

Note 9:  This includes the additional funds needed to operate the Restaurant during the initial period include working capital and pre-opening expenses. We project the working capital estimate as sufficient to cover operating expenses, including employees’ salaries and utility expenses, for the first 3 months of operation.  However, we cannot guarantee the sufficiency of this amount.  Your costs will depend on factors like: how closely you follow our methods and procedures; your management skill, experience, and business knowledge; your salary; local economic conditions; the local market for our product; the prevailing wage rate; competition; and the sales level achieved during the initial period.  We have based these figures on our experience franchising Restaurants and MC’s experience opening and operating Restaurants. 

Note 10:  These figures are based on our experience franchising Restaurants and MC’s experience opening and operating Restaurants and may vary considerably based upon your location.  In addition, your costs will depend on factors like: how closely you follow our methods and procedures; your management skill, experience, and business knowledge; local economic conditions; the local market for our product; the prevailing wage rate; competition; and the sales level achieved during the initial period.  We do not offer direct or indirect financing to franchisees for any of these items.  The availability and terms of financing will depend on factors like the availability of financing generally, your credit worthiness, collateral you pledge, policies of your lending institution, and economic conditions in your area.

**THE FOLLOWING APPLIES TO TRANSACTIONS GOVERNED BY THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA ONLY: These franchises have been registered under the franchise investment law of the State of California. Such registration does not constitute approval, recommendation or endorsement by the commissioner of corporations nor a finding by the commissioner that the information provided herein is true complete and not misleading. This information is not intended as an offer to sell a franchise. We will not offer you a franchise until we have complied with disclosure and registration requirements in your jurisdiction. Contact McAlister’s Franchisor SPV LLC, 5620 Glenridge Drive, NE, Atlanta, GA 30342, to request a copy of our FDD. RESIDENTS OF NEW YORK: This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the New York Department of Law. RESIDENTS OF MINNESOTA: MN Franchise Registration Number: F-8196.