Mgm Liquor Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Mgm Liquor franchise requires a total initial investment of $532K – $2.2M, including a $50K franchise fee. Per the 2026 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 · figures per the 2026 FDD issuance
Overview
- Investment
- $532K – $2.2M
- 11th pct Food Retail
- Avg gross sales
- $2.6M
- Outlet subset2nd pct Food Retail
- Royalty
- N/A
- Units
- 28
- 5th 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
- COSTTotal investment $532K – $2.2M including a $50K franchise fee.
- RETURNSAverage unit revenue of $2.6M/year (median $2.7M) (reported for a subset of outlets rather than the whole system).
- RISKVerdict 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).
- DECLINESystem 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
- FDD year
- 2026
- 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 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $50K | $250K |
| Equipment, build-out, other | $432K | $1.9M |
| Total initial investment | $532K | $2.2M |
Source: Mgm Liquor 2026 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
- $50K – $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 run 97% above the food retail norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Mgm Liquor until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.5M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Mgm Liquor unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $2.6M
- Per unit, per year
- 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 outlets
- vs category median 24
- Range (low → high)
- $1.2M→$4.4M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 142 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. Reported for a subset of outlets rather than the whole system.
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 2026 · 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
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.
Premium insight
SBA Lending Report
Deep-dive into Mgm Liquor's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 11-year lending trend
Instant access. No subscription.
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 2026 · 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 $50K. 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. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Mgm Liquor FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Mgm Liquor FDD and qualifies whose outlets they describe.
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). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
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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.