American Deli Franchise Cost Profit Information

A quick-service restaurant business called American Deli is known for its flavorful chicken wings. Moreover, the company serves salads, cheese steaks, subs, burgers, and fried shrimp. Fresh food with affordable prices is what American Deli aims to provide. In 1989, Atlanta saw the opening of the first American deli. Since then, the idea has been widely implemented throughout Georgia and the Southeast, mostly through franchising, and American Deli Inc. currently runs and franchises the brand. The Chicken Wings cafe are more than 100 locations of the American Deli franchise in the country, including Delis in Connecticut and New Jersey. Their goal is to serve a variety of customers with high-quality meals.

Online ordering is now available at American Deli in addition to its standard deli menu. Consumers can arrange a delivery or place an advance order. Moreover, a mobile app is available on the business’s main website. You may view the entire menu and prices online while placing an order. Also, you can order a pickup or delivery with this app.

According to the latest franchise disclosure document, The net unit growth rate for American Deli’s over the past 3 years is 25%. Over the last year we have data for, American Deli had a net unit growth rate of 4%.

How much is American Deli franchise cost?

American Deli franchise requires a minimum cost of $295,500 and a maximum investment of $551,000, charges a 3% royalty fee and 1% marketing fee and with a $7,500–$10,000 franchise fee.

How much does it cost to franchise an American Deli in the United States?

The cost to franchise an American Deli in the United States is around $295,500 to $551,000 with a minimal franchise fee of around $7,500 to $10,000.

American Deli Franchise Price and Costs
American Deli Franchise Fee	$7,500-$10,000
American Deli Franchise Cost	$295,500 to $551,000
Royalty Fee	3%
Advertising Fee	0.5%
Term of Agreement	10 years
Is franchise term renewable?	Yes
Renewable Franchise Fees	–

 

How much do American Deli franchise owners make?

Earnings and sales at the American Deli franchise owner might differ greatly from one franchisee to another. The labor costs, lease rates, hours worked, and other factors can affect the American Deli franchise owner’s revenues.

Unfortunately, American Deli does not provide financial information regarding the earnings of its franchise owners.

What is American Deli franchise profit?

I will estimate the American Deli franchise profit and years to recoup the investment (ROI).

AUV	Estimated Annual Profit (12.5%)	Estimated Annual Profit (15%)	Estimated Annual Profit (18%)
$ 525,000	$65,625	$78,750	$ 94,500
Recoup mid-point$ 846,500	12 years	10 years	8.9  years

The estimated American Deli’s franchise profit is in the range of $65,625 to $94,500    and it will take  8.9 to 12  years to recoup the investment. 

According to industry standards, getting a return on the franchise investment will take quite a long time.

Is the American Deli Franchise Profit Worth the Cost?

Anyone who is interested in starting their own business should consider the American deli franchising opportunity. The business is continually looking for qualified individuals to join its system. Many of its operators make up the company’s network, and all of them are dedicated to franchising. They credit the efficient franchising system they’ve established for their success.

American Deli Franchise Information Review
Industry Type	Food Franchise Opportunties
Sub Category	Hospitality, Casual Restaurants
Year Established	1989
Company Name	American Deli Plus, Inc.
Founder/Management Head	Chang Lim
Franchising Started	2009
Employees at Company H.O	143
Franchise Expansion Plan	The company might consider multi-store area development rights in any part of the United States.
Number of Units	181
Number of Franchise Units	180
Social Media Handles	Facebook
	Twitter
	Youtube
	Instagram
Company Office location	Atlanta, Georgia, United States

American Deli Franchise for Sale Requirements

With a $7,500–$10,000 franchise fee, an American Deli requires a minimum investment of $295,500 and a maximum investment of $551,000. Remember that you should set aside additional funds so that you have enough money to support yourself while the American Deli business grows.

American Deli Training to Franchises

They provide initial training to your initial Operating Principal and General Manager at no charge. The estimates include only your out-of-pocket costs associated with the training of the Operating Principal and General Manager (including travel, room, and board). The amounts do not include any fees or expenses for training any other personnel. Training is for a 7-day period. Costs will vary depending on your selection of lodging and dining facilities and mode and distance of transportation.

American Deli Operations to Franchises

Franchisee understands the importance of maintaining uniformity among all of the Restaurants and the importance of complying with all of the Franchisor’s standards and specifications relating to the operation of the Restaurant. To protect the reputation and goodwill of the Franchisor and to maintain the high standards of operation under the Marks, Franchisee shall conduct its business in accordance with the Manuals, and other written directives which the Franchisor may issue to the Franchisee from time to time, and any other manuals and materials created or approved for use in the operation of Restaurants. 

How is American Deli Territory Granted to Franchises

The franchises must assume all costs, liabilities, expenses, and responsibility for locating, obtaining, and developing a site for the Restaurant and for constructing and equipping the Restaurant at the accepted site. The franchise and franchisor will agree on either the site or a geographical area in which you must obtain a site before you sign the Franchise Agreement. Franchises will select the site for the Restaurant subject to the franchisor’s consent.

The Restaurant may not be relocated without first obtaining their written consent. Before the franchise lease or purchase the site for the Restaurant, franchises must locate a site that satisfies our site selection guidelines. You must submit to the franchisor in the form they specify a description of the site, including evidence that the site satisfies our site selection guidelines, together with other information and materials that we may reasonably require, including a letter of intent or other evidence that confirms your favorable prospects for obtaining the site. Franchises must submit information and materials for the proposed site to the franchisor for consent no later than 30 days after they have signed the Franchise Agreement.

What is the Franchise Term of Agreement and Renewal?

The term continues for 10 years from the date the Restaurant opens unless terminated earlier. The franchise Agreement may be renewed at your option for two additional 5-year terms.

What is the American Deli?

In 1989, American Deli’s first location opened in Atlanta, Georgia. It quickly expanded to Texas and the Southeast. American Deli International, Inc., a company with more than 100 sites around the US, is the owner of the American Deli franchises. Southeast is where most of its outlets are found. The American Deli menu is distinct from those of other chains. It contains foods like cheeseburgers, hot dogs, and sandwiches made with grilled chicken. A franchise option is available under its flagship for individuals or small businesses. Its eateries are strategically positioned close to office buildings and commercial centers throughout the Southeast United States. At food courts, the chain also operates more compact kiosks. There are more than 100 locations of its franchise in the USA, including delis in Connecticut and New Jersey. Their goal is to serve a variety of customers with high-quality meals. Fresh food and a welcoming environment are priorities for the chain. The brand is well-known for its welcoming service and is getting more and more popular.

Is American Deli a Franchise Opportunity?

Absolutely yes, American Deli is a franchising opportunity. The benefits of purchasing an existing Deli business are numerous. For instance, the company may already be up and operating, with clients, suppliers, and a strong brand name, allowing you to launch your activities right away. Also, there is no requirement that you look over demographic studies or build a website for marketing.

An established company has a past. Instead of speculating, you can evaluate prior financial data to determine whether the business would be successful.

Facts That Nobody Told You About American Deli

1. American Deli Got A Name Drop From 2 Chainz
2. American Deli’s First Location Opened In 1989
3. Wings Can Be A Side Dish At American Deli
4. American Deli Raked In The Bucks In 2013

Does American Deli provide Financial Assistance to Franchises?

American Deli provides opening assistance without additional charge. Any additional assistance the franchise requested is billed at the current per diem rate. If the franchise requests additional assistance, it must pay the current per diem charge for our employees used to provide the assistance and our associated costs. Current per diem $500

Pros & Cons of Owning an American Deli Franchise Opportunities

Pros

1. Revenue typically tends to be quite high as long as you have a consistent stream of people coming into your restaurant.
2. There is a lot of buzz in the community about new restaurants.
3. Food service is fast-paced
4. Real estate assistance is provided.

Cons of Owning an American Deli

1. It has a high employee turnover
2. You’ll have to sign a multi-year commercial lease. These leases tend to be complicated and are extremely landlord-friendly.
3. Ownership requires long hours of engagement.

What are American Deli franchises reviews?

Based on many surveys conducted in past years, it is a proven fact the American Deli is quite a good choice if you wish to work with them as they offer you time and location flexibility to set up your franchises along with energizing work tasks and empowering the ability to meet personal goals. The areas in which the company needs improvement are the support they provide and its trust in colleagues.

Franchise Deck Analysis and Overview

If you’re considering franchising, American Deli seems like a successful company to operate. When compared to other franchises with US locations, its franchise fee is fairly reasonable. It can surely be a profitable franchise business for you, keeping in mind its profit and investment recovery.

Potential Risks to consider before investing in an American Deli

1. You are required by the franchise agreement to settle any disagreements with them in Georgia solely through litigation, arbitration, or mediation. You might be forced to accept a less advantageous resolution for conflicts as a result of out-of-state litigation, arbitration, or mediation. The cost of suing, arbitrating, or meditating with them in Georgia can be higher than it would be in your home state.
2. The franchise agreement specifies that Georgia law would apply to the contract; nevertheless, Georgia law might not offer the same rights and benefits as the law of your state. Consider contrasting these laws.
3. There may be other risks concerning this franchise.

 

American Deli Franchise Success and Failure Rate

The below table will highlight the American Deli franchises success and failure rate for the last 3 years. This will supplement your decision-making process.

Year	Format	Start	End	Change
2018	Franchise Owned	20	-7	13
Company Owned	144	144	144
2019	Franchise Owned	20	-3	17
Company Owned	156	156	156
2020	Franchise Owned	8	-1	7
Company Owned	173	173	173

Competition Analysis of American Deli Franchises

	Cost to Franchise	Franchisee Fees	Royalty + Ad fees	Expected Profit	Recoup of Capital	FD Rating
American Deli	$295,500 to $551,000	$7,500-$10,000	3%+0.5%	$525,000	9 – 12 years	3.3/5
Old Chicago Pizza and Taproom Franchise	$1,399,000 – $2,177,000	$40,000	4%+2%	$40.3 million	–	3.9/5
HWY 55Franchise	$196,055 – $433,055	$25,000	5%+2%	$5.2 million	–	3.6
Pepe’s Mexican Franchise	$207,000 – $652,000	$15,000	4%+1%	$5.9 million	–	3.7/5
Golden Corral Franchise	$2,168,419 – $6,602,5130	$50,000	4%+2%	$195.1 million	–	4/5
Hooters Franchise	$956,500 – $4,275,000	$75,000	5%+1%	$605 million	–	4.5/5

The FD rating for the American Deli franchises is 3.3/5.0.

Conclusion: Should You Buy American Deli Franchise for Sale?

 There is no need to make a big deal out of wanting to start a franchise. Franchise owners in the restaurant business make an average of $82,000 per year. This sum is impressive when compared to the normal pay range for a non-franchise restaurant owner, which is between $24,000 and $155,00. In addition to the revenues from their restaurant, franchise owners are paid royalties and fees. When the franchisee makes these payments, his or her financial situation could quickly improve. Even if you only invest a small amount in the American Deli franchise, you will not only make money back, but you will also make a lot more.

Entrepreneurs who want to open a franchise in the casual restaurant Alternatives of American Deli franchise opportunities categories can look at 

1. Mcalister’s Franchise 
2. Jason’s Deli franchise 
3. Schlotzsky’s Deli franchise
4. Marco’s Pizza Franchise
5. Houston’s Hot Chicken Franchise
6. Krispy Krunchy Chicken Franchise
7. Harold’s Chicken Franchise
8. Mr Fries Man Franchise
9. Slim Chickens Franchise

Frequently Asked Questions (FAQs)

1. Is the American Deli franchise profitable?

Anyone who is interested in starting their own business should consider the American deli franchising opportunity as it is highly profitable.

2. Can you make money owning an American Deli?

American Deli, unfortunately, does not disclose financials on how much American owners make but you can surely make a good amount of money.

3. Is an American Deli a franchise?

Yes, American Deli offers you franchising opportunities and started franchising in the year 2009.

4. How much is an American Deli franchise?

The cost to franchise an American Deli’s is around $295,500 to $551,000 with a minimal fee of around $7,500 to $10,000.

5. How do American Deli franchises make money?

They, unfortunately, do not disclose financials on how much American Deli owners make in their disclosure document.