Mgm Liquor Franchise Cost & 2026 FDD Data
53/100
Second tier
53 this brand49 Food Retail medianlikely 49–57: narrower with more SBA loans (high confidence)
Higher is better · an editorial assessment, not investment advice
#1,545 of 3,068 graded brands
Why a B: Helped by financial health, unit economics and transparency. Held back by unit growth. See all six factors
- Total investment
- $532K – $1.0M
- Avg gross sales
- $2.6M
- 12 outlets (Mid-Size Stores 6,300-8,000 sq ft); not profit
- SBA charge-off
- 21.4%
1 in 5 SBA 7(a) loans to Mgm Liquor owners charged off (6 of 28 resolved loans, approved FY2007 to FY2015); Food Retail median 5.6%.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Mgm Liquor franchise requires a total initial investment of $532K – $1.0M, including a $50K franchise fee. Per the 2026 FDD, average gross sales were $2.6M (Item 19: 12 outlets (Mid-Size Stores 6,300-8,000 sq ft); gross sales, not profit). SBA 7(a) loans show a 21.4% charge-off rate on 28 resolved loans. Verdict grade: B (Second tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
Quick verdict · vs Food Retail median
Top edge: green = better than the Food Retail median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSAverage gross sales of $2.6M/year (outlet median $2.7M; Item 19: 12 outlets (Mid-Size Stores 6,300-8,000 sq ft); gross sales, not profit).
- GROWTHIn the latest Item 20 year, the number of franchised outlets fell by 2 (0 opened, 2 closed).
AT STAKEOne unit at the Item 7 midpoint: $102K a year in payments on assumed SBA 7(a)-style terms.You put in about $157K of your own cash and personally guarantee a $630K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (3)
- Net -2 franchised outlets in 2025 (Item 20, outlet counts). Ask owners why outlets closed.
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- Item 15 (owner participation) requires the owner, or a principal the franchisor approves, to run the business day to day. Ask how much of the business that principal must own.
Checked and clear: no auditor doubt that the franchisor can keep operating, no pending lawsuit naming the franchisor, no jury-trial waiver, no supplier rebates to the franchisor and the full filing on file, and an Item 19 average from 24 units. Not on file here, so ask: SBA charge-off rate against the category median.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 2.6× the Food Retail median ($299K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask M.G.M. Liquor Stores, Inc. (Item 1: 2550 University Avenue West, Suite 230S, St. Paul, Minnesota 55114) and your lender what they require, and keep living costs for the first year outside the deal.
FDD Item 7 (startup costs) · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (first 3 months) | $50K | $100K |
| Equipment, build-out, other | $432K | $892K |
| Total initial investment | $532K | $1.0M |
Source: Mgm Liquor 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
Marketing / ad fundThe filing's detailBrand-wide marketing pool. Franchise Agreement states 2% of Gross Receipts, but franchisor is currently only collecting 1.2% of Gross Receipts (as of FDD date); can raise up to 2% at any time. | 1.2% of gross sales |
| Transfer fee | $20,000 |
| Renewal fee | $5,000 |
What do units actually make?
Average gross sales are 4.8× the Food Retail median ($543K).
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Mgm Liquor unit would ask of you, from the filing's Item 7 total and labeled assumptions.
Average gross sales are $2.6M (FDD p.31). This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $102K a year after its food, labor, rent and other costs and the franchisor's fees.
How these figures are worked out
- Loan (assumption): 80% of the $787K Item 7 midpoint is a $630K loan, paid over 10 years at 10.5%: $102K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Mgm Liquor's past SBA 7(a) loans averaged 5.8% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $157K Assumption (the part the loan does not cover of the $787K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $630K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
One unit
One unit: what is left after the loan payment
Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.
Returns model · one unit
What would one Mgm Liquor unit leave you each year after the loan payment?
Item 19: $2,581,387 average for 12 outlets (Mid-Size Stores 6,300-8,000 sq ft). Use a figure for outlets like yours if yours differ.
Gross sales, not profit: the costs below decide what is left.
The filing also sets a minimum or cap on these fees: “Earned Service Fee: $4,860 per week, capped at 2.2% of Gross Receipts (weekly, if timely reported); currently charged as a flat weekly amount subject to that cap.” (Item 6). This model applies the percentages, so at low sales the real fee can be higher than shown here.
This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners.
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.
Item 7 midpoint of $532K to $1.0M
Item 7's $50K to $100K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies royalty rate, COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $630K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
Buying several existing units? The acquisition scenario
Buying several units
What buying a few existing units could return
Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.
Not modelled yet
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies royalty rate, COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.
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 · filed by M.G.M. Liquor Stores, Inc.
Financial performance
- Range (low → high)
- $1.2M→$4.4MSource: 2026 FDD, page 31
- Cohort dispersion (min → max)
Percentile ranks within Food Retail
Each rank is among the Food Retail brands that report that figure (the count is under each bar).
vs Food Retail medians
How Mgm Liquor compares
Category median of published Food Retail brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
M.G.M. Liquor Stores, Inc., owned by M.G.M. Wine & Spirits, Inc.
Item 1 (the franchisor) · 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.
- FDD Item 1, page 6 of the 2026 FDD
- 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
- latest fiscal year in the 2026 FDD; $2.3M the year before
Overview
About
Operation of an off-sale retail liquor store under the MGM Wine & Spirits brand.
- CEO
- Paul A. Setter
- States and territories listed
- 1
- registered or offered in, as the filing lists them (DC and territories included); not where units may open
Is the system healthy?
-2 franchised outlets over the two years to 2025 (27 to 25, -7.4% in total, -3.8% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 89%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- Item 20 Table 5
- Projected new
- 2
- Franchisor's next-year forecast
Item 20 projects a RANGE here, not a single number: the filing prints 0-2 new franchised outlets. The figure shown is the high end, 2, which is the convention every range-resolved brand on this site follows (owner ruling R91-A).
Item 20 · franchised units at year end
Franchised units fell from 27 in 2023 to 25 in 2025
Axis does not start at zero.
Source and method
Government records
SBA loan data
Lenders charged off 21.4% of 28 resolved SBA 7(a) loans. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 29
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $20.9M
- Average loan
- $721K
- loan volume divided by loans
- Charge-off rate
- 21.4%
- 6 of 28 resolved loans
- Paid in full
- 78.6%
- of resolved loans
- Recent-loan charge-off
- No recent loans
- no SBA 7(a) loan approved since FY2017
- Lenders
- 10
- Average interest rate
- 5.8%
- Jobs reported
- 298
- Lender concentration
- 52%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
The approval-year breakdown covers 18 of the 28 resolved loans and 5 of the 6 charge-offs (FY2007 to FY2015).
SBA 7(a) · charge-off rate by approval year
Mgm Liquor charge-off rate by loan approval year
None of these 5 approval years has 10 or more resolved loans, too few to draw a trend. Each year’s numbers are in the table below.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 2007 | 4 | 2 | Too few |
| 2008 | 4 | 0 | Too few |
| 2009 | 4 | 1 | Too few |
| 2013 | 3 | 0 | Too few |
| 2015 | 3 | 2 | Too few |
Source and method
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Mgm Liquor from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 70%
- Average interest rate
- 5.8%
- Lender concentration
- 52%
- Jobs reported
- 298
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| Wells Fargo Bank National Association | ||
| 15 | $8.8M | Not on file |
| Byline Bank | ||
| 3 | $3.3M | Not on file |
| First Resource Bank | ||
| 2 | $3.2M | Not on file |
| U.S. Bank, National Association | ||
| 2 | $1.2M | Not on file |
| HomeTown Bank | ||
| 2 | $2.0M | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| MN Minnesota | 29 | 6 | 21.4%28 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
A 21.4% charge-off rate means about 1 in 5 resolved SBA 7(a) loans to this brand was charged off. The approval-year chart above shows which years they came from.
What are the risks?
Main risk: a shrinking system. Franchised outlets fell from 27 to 25 over the two years to 2025.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade B: Second tier, 53/100 (category median 49); the full grade is at the top of the page.
How the grade is built
Why a B, factor by factor
- Financial health HelpsAudited financials; no going-concern doubt; franchisor net income positive
- Unit economics HelpsAvg gross sales $2.6M on a $787K investment midpoint, 3.3x (gross sales, not profit)
- Unit growth Weighs on it, weakest dimension-2 franchised outlets over the two years to 2025 (27 to 25, -7.4% in total, -3.8% a year compounded); turnover 7.1%
- Scale Neutral25 franchised units, +3 company-owned (28 in all); franchising since 1995
- Legal Neutral1 matter naming the franchisor among the Item 3 matters we list (3.6 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (-15 points)SBA loan record: the SBA charge-off rate (21.4% on 28 resolved loans approved FY2007 to FY2015) is between 20% and 50%, a range the score counts against a brand, so it took 15 points off. The score uses fixed ranges, not the category median, so a rate below its category median can still cost points.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
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
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Franchisor takes supplier rebates: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Litigation case detail1 matter · Item 3
Litigation cases
The franchisor
Status not stated in the filing (1)
M.G.M. Liquor Stores, Inc. v. Shree Ganesh Inc., Mahadev, LLC, Bholenath, LLC, Sahil Patel, and Hetal Patel
Brought against a franchisee · filed 2025-12-31 · Minnesota District Court, Ramsey County · 62-CV-26-14
“… Minnesota District Court, Ramsey County, Minnesota (62-CV-26-14, filed December 31, 2025.”Page 8 of the 2026 FDD, Item 3
Outcome: “the franchisees and their guarantors agreed to a stipulated injunction under which they agreed to sell or close the store and not to violate the non-compete provisions of their franchise agreements in the future.”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Protected territory | Yes |
|---|---|
| Exclusive territory | Yes |
| Territory radius | 1 mi |
| Online sales rights | Reserved by franchisor |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | The owner, or a principal the franchisor approves, must run it |
| Non-compete (years) | 2 years |
| Non-compete (miles) | 5 mi |
| Right of first refusal | Yes |
| Transfer requires consent | Yes |
| Mandatory arbitration | Yes |
| Arbitration location | Minnesota |
| Jury trial waiver | No |
| Governing law | MN |
Items 10 (financing), 11 (training and support)
Training and 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
- 4–18 mo
- 4–8 months if for the conversion of an existing structure; 6–18 months if for a new store (FDD p.21)
- 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 (initial fees) & 11 (training and support)
Franchisor support
Franchisee contacts
We hold no owner list for this brand. Item 20 of the FDD lists the current and former owners; the free FDD is the source.
Frequently asked questions
How much does it cost to open a Mgm Liquor franchise?
Per the 2026 FDD, the total investment to open a Mgm Liquor franchise ranges from $532K to $1.0M, with an initial franchise fee of $50K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Mgm Liquor franchise owners earn?
According to Item 19 of the Mgm Liquor FDD, average gross sales were $2.6M (12 outlets (Mid-Size Stores 6,300-8,000 sq ft); gross sales, not profit). The median is $2.7M. What an owner keeps depends on location, operating costs and management.
Who owns Mgm Liquor?
Mgm Liquor is franchised by M.G.M. Liquor Stores, Inc. Its parent company is M.G.M. Wine & Spirits, Inc.. Source: FDD Item 1, 2026 filing.
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?
There is no published franchise failure rate. What is measurable is Mgm Liquor's SBA charge-off rate: 21.4% on 28 resolved loans approved FY2007 to FY2015. Put plainly: 1 in 5 SBA 7(a) loans to Mgm Liquor owners charged off (6 of 28 resolved loans, approved FY2007 to FY2015). The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Mgm Liquor franchise locations are there?
Per the 2026 FDD, Mgm Liquor has 25 franchised units and 3 company-owned (28 in all). In the latest year, the number of franchised outlets fell by 2 (0 opened, 2 closed).
Is Mgm Liquor a good franchise to buy?
FranchiseVerdict gives Mgm Liquor a B Verdict grade (Second tier) with a verdict score of 53 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by financial health (audited financials), unit economics and transparency. Held back by unit growth (-2 franchised outlets over the two years to 2025: 27 to 25, -7.4% in total, -3.8% a year compounded). The “Why a B” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Food Retail franchises
Similar investment first, then by grade
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.