Applebee’s Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$35,000
Investment required
$2,428,000 - $7,084,000
Royalty fee
4.00%

Applebee's: Leading the Global Casual Dining Experience with Excellence

Applebee's, known as the leading global chain in casual dining, started its journey in 1980 and began franchising by 1983. The brand, a part of Dine Brands Global, Inc. (previously DineEquity, Inc.), operates under the name "Applebee’s Neighborhood Grill & Bar." Based in Pasadena, California, Applebee's has expanded its reach, offering a diverse menu of food and drinks in a sit-down, table-service environment.

The franchise is renowned for its extensive training program, which encompasses management and operational roles within the restaurant. This program covers a wide range of restaurant functions, ensuring that franchisees and their teams are well-prepared to uphold Applebee's high standards. The training is designed to be practical and task-oriented, facilitating hands-on learning and application in real-world restaurant settings.

Applebee's provides franchisees with the chance to operate in a non-exclusive territory, meaning they may encounter competition from other franchisees or company-owned locations. The length of the franchise agreement can extend up to 20 years, though specific renewal provisions are not detailed. This structure offers franchisees a robust framework to operate within, ensuring uniformity and quality across all Applebee's establishments.

As the world's largest casual dining chain, Applebee's boasts significant annual sales, highlighting the brand's popularity and the profitability potential for its franchisees. The comprehensive support and training available, along with the brand's strong market presence, make Applebee's an attractive investment opportunity in the casual dining industry.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount Low Amount High
Initial Organizational and Training Expenses $75,000 $120,000
Building Costs $810,000 $2,310,000
Site Work $375,000 $1,250,000
Professional Services $64,000 $230,000
Permits/Fees $35,000 $105,000
Furniture, Fixtures, Equipment and Signage $495,000 $805,000
POS System $17,000 $45,000
POS System License Fees $4,020 $8,120
Kitchen Display System $1,500 $2,400
Smallwares $20,000 $50,000
Initial Inventory $25,500 $47,300
Pre-Opening Expenses $55,000 $350,000
Applicant’s Fee $0 $15,000
Franchise Fee Deposit $0 $10,000
Initial Franchise Fee $25,000 $35,000
Initial Advertising Expense $5,000 $40,000
Liquor License(s) $500 $1,000,000
Apple Supply Chain Co-op Stock Purchase $0 $100
On-Line Ordering $56 per month $150 per month
EMV Point to Point Encryption Services $1,200 $3,200
Wi-Fi Services $100 per month $600 per month
Wi-Fi Equipment $1,200 $3,000
Digital Products Service Fee $45 per month
Server Tablet Maintenance Fee $420 per year
Implementation Fees $800 $3,500
Menu Management Platform Fee $90 per month $180 per month
Customer Relationship Management Fee $0 $150 per month
Gateway Processing Fee $63 per month
Waitlist $23 per month
ROSnet – Food cost, Labor and business analytics reporting service $200 set up per location; $75-$400 per month
ShiftOne $30 per month $360 per year
To Go Accuracy Printer $550 $650
Campaign/Menu Training $30 per year
Extra Manuals $0 $250 per set
Operating Expenses During First Three Months $405,000 $655,000
TOTAL $2,428,029 $7,084,006

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Number of units

2024
Franchised units

1,515

1,575

1,542

Company-owned units

69

0

0

Total units

1,584

1,575

1,542

Franchise Disclosure Document

Training 

Applebee's offers a comprehensive training program designed to equip franchisees with the necessary skills to manage their restaurants effectively. Here’s an overview of the training process:

Before a restaurant opens, the General Manager, Kitchen Manager, and each Assistant Manager must attend Applebee's operations training facility for a duration specified by the Franchisor. They must successfully complete the training to the Franchisor's satisfaction.

This training includes hands-on experience in one of Applebee's restaurants, ensuring that franchisees and their operators are thoroughly familiar with the operational demands of an Applebee's restaurant.

For new franchisees without existing restaurants, Applebee's provides up to eight training personnel for about eight days before and six days after the opening of the first restaurant. These trainers will instruct the restaurant employees on operating the kitchen, To Go services, bar, and dining room areas.

Should more than eight trainers or a training period exceeding 14 days be required, the franchisee will bear the additional costs and expenses.

Territory Protection

Franchisees will not be granted an exclusive territory. They may encounter competition from other franchisees, Applebee's-owned outlets, or other distribution channels or competitive brands controlled by Applebee's.

According to the Development Agreement, franchisees are given the right to develop one or more restaurants within a defined area, known as the "Territory," during one or more "initial development periods."

This right may extend through subsequent development periods if it is deemed necessary to construct additional restaurants to fully develop the Territory. However, Non-Traditional Venues are excluded from the franchisee's Territory and may be developed by Applebee's or a third party without any involvement or compensation to the franchisee.

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