Mgm Liquor Franchise Cost, Revenue & Review 2026
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Mgm Liquor franchise requires a total initial investment of $532K – $2.2M, including a $40K – $50K franchise fee. Per the latest FDD, average unit revenue was $2.6M[2]. SBA 7(a) loans show a 21.4% charge-off rate across 29 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified
Overview
- Investment
- $532K – $2.2M
- 7th pct Food Retail
- Avg gross sales
- $2.6M
- 3rd pct Food Retail
- Royalty
- N/A
- Units
- 28
- 3rd pct Food Retail
- SBA charge-off
- 21.4%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Food Retail · color = vs category peers
Green = favorable by >10% vs Food Retail avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $532K – $2.2M including a $40K franchise fee.
- Average unit revenue of $2.6M/year (median $2.7M).
- Verdict B (Above average), verdict score 50/100 (higher is better). SBA loan charge-off rate of 21.4% across 29 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- System contracting at -7.4% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- M.G.M. Liquor Stores, Inc.
- Parent company
- M.G.M. Wine & Spirits, Inc.
- Predecessor
- M.G.M. Liquor Warehouse International, Inc.
- Prior franchisor entity
- CEO title
- President
- Paul A. Setter
- Incorporated in
- MN
- HQ
- 2550 University Avenue West, Suite 230S, St. Paul, Minnesota 55114
- Auditor
- EisnerAmper LLP
- Audited financials
- Franchisor revenue
- $2.3M
- vs $2.3M prior year
Overview
About
Operation of an off-sale retail liquor store under the MGM Wine & Spirits brand.
- CEO
- Paul A. Setter
- Headquarters
- MN
- Founded
- 1970
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 62% above the typical food retail franchise.
Source: FDD · Items 5–7
FDD Item 7
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $50K | $250K |
| Equipment, build-out, other | $442K | $1.9M |
| Total initial investment | $532K | $2.2M |
Source: Mgm Liquor FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $532K – $2.2M
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $250K
- Top 40% of category vs category
- Franchise fee
- $40K – $50K
- Top 40% of category vs category
- Royalty
- Earned Service Fee: $4,860 per week, capped at 2.2% of Gr…
- Ad fund
- 1.2%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.2% of gross sales |
| Transfer fee | $20K |
| Renewal fee | $5K |
| Inventory (initial) | $250K – $1.0M |
What do units actually make?
Average unit sales land near the food retail norm.
Source: FDD · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$201K
7.8% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
7.6 yrs
cash-on-cash, unlevered
Financial Performance
- Avg gross sales
- $2.6M
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
- Median gross sales
- $2.7M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical outlet-level Gross Receipts by store-size segment
- Sample size
- 24 units
- vs category median 23
- Range (low → high)
- $1.2M→$4.4M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
Compared against 222 Food Retail brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.6M/year in gross sales. Revenue-to-investment ratio: 1.9x.
Operator retention
System contracting at -7.4% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Food Retail averages
How Mgm Liquor Compares
Is the system healthy?
Source: FDD · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 28
- Opened
- 0
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 8.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 89%
- vs corporate-owned
- Net growth (3-yr)
- -7.4%
- Net unit change over 3 years
- 3-yr CAGR
- -7.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 1
- Terminated (3yr)
- 1
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 29
- Loan volume
- $20.9M
- Median loan
- $568K
- 50th percentile
- Charge-off rate
- 21.4%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 78.6%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 10
- Defaults
- 6
- Typical loan rate
- 5.8%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 4453
- Jobs supported
- 298
- 1.4 per loan
- Lender concentration
- 52%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Vintage analysis
Mgm Liquor charge-off rate by loan vintage
Top lenders financing Mgm Liquor franchisees
Showing 3 of 10 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
A 21.4% charge-off rate means roughly 1 in 5 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 21.4% — 34% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Franchisor sued 3 franchisees and guarantors in MN District Court (Ramsey County, filed Dec 31, 2025) for non-compete violations; franchisees agreed to a stipulated injunction to sell/close the competing store and paid over $10,000 in legal fees.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · EisnerAmper LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
What are you signing up for?
Source: FDD · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 1 mi |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Mandatory arbitration | Yes |
| Arbitration location | Minnesota |
| Jury trial waiver | No |
| Governing law | MN |
| Litigation count | 1 |
View Item 3 litigation summary
Franchisor sued 3 franchisees and guarantors in MN District Court (Ramsey County, filed Dec 31, 2025) for non-compete violations; franchisees agreed to a stipulated injunction to sell/close the competing store and paid over $10,000 in legal fees.
Items 10, 11
Training & Operations
- Classroom training
- 7 hrs
- On-the-job training
- 62 hrs
- Training location
- Training facility in St. Paul, Minnesota and franchisee's store
- Ongoing training
- Required
- Time to open
- 8 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor approves site and assists in lease negotiation
- Franchisor financing
- Not offered
- Item 10
- POS system
- Electronic cash register / POS system (recommended supplier)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Electronic cash register / POS system (recommended supplier)
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Mgm Liquor franchise?
The total investment to open a Mgm Liquor franchise ranges from $532K – $2.2M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Mgm Liquor franchise owners earn?
According to Item 19 of the Mgm Liquor FDD, the average gross sales per unit is $2.6M. The median is $2.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Mgm Liquor's franchise failure rate?
Based on SBA 7(a) loan data, Mgm Liquor has a charge-off rate of 21.4% across 29 loans, meaning 21.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Mgm Liquor franchise locations are there?
As of their most recent FDD filing, Mgm Liquor has 28 total units in the United States, including 25 franchised units and 3 company-owned units.
Is Mgm Liquor a good franchise to buy?
FranchiseVerdict rates Mgm Liquor as a B-grade franchise with a verdict score of 50 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.