Franchisel.com — FDD Diligence Memo
McAlister's Deli
Generated 2026-04-06 · 2026 FDD · Government-filed source
McAlister's Deli
2026 FDD Diligence Memo
Composite score based on six FDD-derived dimensions.
Sys Health
7
Econ Burden
8
Red Flags & Key Signals
Avg $2,798,639 from government-filed FDD. Transparent disclosure is a positive signal.
Investment Overview
Items 5, 6, 7Total investment range: $1,044,975 – $2,442,200. Initial fee: $35,500. Royalty: 5%. Marketing fund: 2%.
Payback estimate: Investment-to-disclosed-revenue ratio: 0.62x. This is the ratio of midpoint investment ($1,743,588) to disclosed avg revenue ($2,798,639). No profit assumptions are applied.
Item 19 — Revenue
Item 19 — 2026 FDD (government-filed)Item 19 discloses avg revenue of $2,798,639 (FY 2026).
Sample: Strong560 units (100% of system) — highly representative sample. Investment-to-disclosed-revenue ratio: 0.62x ($1,743,588 midpoint investment vs $2,798,639 avg revenue).
Item 20 — System Health
Item 20 — 2026 FDDSystem flat — net 0 units in reporting period.
→ StableUnit count essentially unchanged.
Total Units
560
Net Growth
+0
Turnover
0%
Year-over-Year Trends
2026 FDDOpened
+0
Closed
-0
Net
+0
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2026 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19Revenue type unclear
The FDD does not clearly specify whether figures are gross sales, net sales, or a profit metric. This limits comparability.
Profit not disclosed
Item 19 reports revenue only. No expense breakdown is provided. Profit cannot be determined from this disclosure alone.
Subset of units reported
Item 19 samples may be limited to defined subsets (subset meeting stated criteria), which affects comparability.
Strong sample (560 of 560 units)
100% of eligible units included — highly representative.
Current data (2026)
Revenue figures are from 2026 — recent and relevant.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
The FDD does not include audited financial statements. Ask: do you have any visibility into the franchisor's financial health? Have you ever been concerned about the company's stability?
Look for: Even anecdotal signals — changes in leadership, delays in royalty statement processing, reduced marketing fund activity.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Data sources: 2026 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2026 FDD filed with MN CARDS (file #). Data verified from government filing.. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.