MGM Wine & Spirits operates off-sale retail liquor stores offering a wide selection of wines, spirits, and related products. The franchise focuses on retail alcoholic beverage sales.
Key Insights
- MGM Wine & Spirits has a long-standing presence in the beverage alcohol sector, evolving from its origins into a recognized name. The business has established a robust operational framework focused on efficient distribution and retail management, providing a solid foundation for expansion.
- The franchise operates within a dynamic retail environment catering to adult consumers seeking a diverse selection of alcoholic beverages. The business model emphasizes accessibility and customer service within its stores.
- Operating in the beverage alcohol industry involves navigating specific regulatory landscapes and consumer preferences. MGM Wine & Spirits' approach is designed to align with these market dynamics and consumer expectations.
Franchise Fee and Costs to Open
Exploring the financial picture of MGM Wine & Spirits gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $532,000 - $2,215,000, along with a franchise fee of $40,000 - $50,000.
Financial Performance and Revenue
Yearly gross sales of $2,764,294 and estimated earnings of $276,430 - $331,716 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 5.0-7.0 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
MGM Wine & Spirits provides comprehensive initial training for new franchisees. This immersive program is conducted over two weeks at MGM Wine & Spirits' corporate headquarters. The training offers a deep dive into operational procedures and best practices. MGM Wine & Spirits also offers ongoing support resources to assist franchisees.
Legal Considerations
Legal considerations for a MGM Wine & Spirits franchisee are outlined in the Franchise Disclosure Document (FDD) and the Franchise Agreement. Note that this franchise discloses lawsuits and/or bankruptcy information in its FDD, which may impact your evaluation. Subscribe now to access more details and be sure to consult a qualified attorney before proceeding.
Challenges and Risks
A franchisee might encounter considerations regarding local market saturation for wine and spirits, requiring a tailored approach to customer acquisition. Managing inventory for a diverse product range presents operational complexity, demanding efficient stock rotation and tracking. Dependence on specific suppliers for popular or rare items introduces potential disruptions to the supply chain, impacting product availability.
Franchise Datasheet
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