MGM Wine & Spirits FDD – Franchise Information, Costs and Fees
Type of Business
The franchise offered is for the operation of an off-sale retail liquor store.
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.
The total investment necessary to begin operation of an MGM Wine & Spirits® store is estimated at between $532,000 and $1,042,000 for a 5,000 square foot store, between $737,800 and $1,647,000 for a 7,500 square foot store, and between $872,000 and $2,217,000 for a 9,500 square foot store. This includes an initial franchise fee that must be paid to the franchisor of either $50,000, or a reduced initial franchise fee of $40,000 if this is the second or subsequent MGM franchise you are acquiring and you are not in default under your current franchise agreement(s).