5/10

Franchimp Summary Rating

3 /10
Higher than 79% of peers

Franchise Summary

Description
The franchise offered is for the operation of an off-sale retail liquor store. The total investment necessary to begin operation of an MGM Wine & Spirits stor
Company Background
MGM Wine & Spirits is a multi-unit, off-sale retail liquor store franchise offering. Our total investment necessary to begin operation of an MGM Wine & Spirits(R) store is $500,000.00. We are looking for individuals or groups that: -Are interested in the opportunity to own and operate their own business in a stable industry with steady growth potential; -Have strong leadership skills; -Can provide adequate funding for start up costs and working capital; and can demonstrate they have the ability to secure financing from lenders in our target area (within 50 miles).
Franchise Opportunity
The average supermarket only carries 10,000 products. This means that most people will never find the wine they are looking for. There's a better way to buy wine and spirits - MGM Wine & Spirits stores carry over 100,000 products from 1,500 different wineries and distilleries! Our franchisees have access to our ordering system which allows them to order any product in stock at any time 24/7. We also offer a full-service bar with an experienced mixologist who can make custom cocktails using your own liquor or ours!
Corporate Structure
In 1970, the current directors of M.G.M. began operating retail liquor stores through a number of corporations. On September 27, 1977, they formed M.G.M. Liquor Warehouse International, Inc. for the purpose of offering franchises for this business. That company offered franchises, and operated the M.G.M. franchise system, until the spring of 1995. In early 1995, through a series of mergers, that company acquired several of the MGM Liquor Warehouse® stores owned by its shareholders and began operating those stores as company-owned stores. It also changed its name to M.G.M. Wine & Spirits, Inc. M.G.M. Wine & Spirits incorporated M.G.M. Liquor Stores, Inc on September 29, 1995, transferred all of its franchise business to them in October 1995, and became their parent company. M.G.M. Wine & Spirits and M.G.M. are Minnesota corporations. The principal offices for these companies are located at 2550 University Avenue West, Suite 230S, St. Paul, Minnesota 55114.

Earnings Transparency

7 /10
This Franchise discloses slightly more information about the financial performance of their franchisees compared to other franchises in the same industry

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Financial Performance of "Standard" Units

Average Revenue Per Unit

Compared vs. Food Retail (Grocery, Specialty Foods) Industry

$2,523,340 / unit

Franchise Type: Standard

Average Revenue During 2020

$2,523,340
$72,682
Industry Low
$2,523,340
Industry High

Franchise Types Available

# Type Investment Fees

Employee Contact Database

# Name Position Phone Number Email Address

Distribution of MGM Wine & Spirits Franchisees

MGM Wine & Spirits Franchise System Development in 2022

FAQ

How much investment do I need to start my own MGM Wine & Spirits business?
Franchisees typically require at least $532 to $1 investment to get their MGM Wine & Spirits business started
What are the initial franchise fees for MGM Wine & Spirits?
Franchisees typically need to pay at least $50 in fees directly to MGM Wine & Spirits in order to earn the right to launch their business
How much money can I make with a MGM Wine & Spirits franchise? What are the average revenues for a typical MGM Wine & Spirits business?
We estimate that the average revenue of an individual MGM Wine & Spirits unit is approximately $2,523,340. We based this on Item 19 in franchise disclosure document
How long do I need to commit to running a MGM Wine & Spirits unit? What is my contractual commitment?
MGM Wine & Spirits franchisees are typically required to sign up to a 20 year contract initially. The renewal length is 20 years. You can of course exit early but don’t expect to get any refund!

Accessibility

3 /10
The Franchisor's investment costs ranges from $532,000 to $1,042,000 which is Much Higher than the $0 to $0 average in the Food Retail (Grocery, Specialty Foods) industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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