1851

LAST UPDATED:&nbsp;June 14, 2023FRANCHISE WEBSITE:&nbsp;<a href="https://www.applebees.com/en/opportunities/domestic/domestic-request?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">https://www.applebees.com/en/opportunities/domestic/domestic-request</a>NUMBER OF LOCATIONS:&nbsp;Nearly 2,000REPORTED COST TO GET IN:&nbsp;$2,009,201 to $8,266,730REPORTED ROI (Item 19):&nbsp;Data not publicly available<a href="https://www.applebees.com/en/opportunities/domestic/domestic-request?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">Applebee's</a> is a well-recognized casual dining franchise owned by&nbsp;<a href="https://www.dinebrands.com/en?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">Dine Brands Global</a>. The brand provides a fun, family-friendly atmosphere, featuring a broad menu that caters to different tastes and preferences, with everything from salads and steaks to pasta and burgers. Since its establishment in 1980, Applebee's has seen significant growth and has expanded to nearly 2,000 locations globally.<h2>How Many Applebee's Locations Are There?</h2>Applebee's was founded in 1980 in Atlanta, Georgia, by Bill and T.J. Palmer. The Palmers had a simple but effective vision of a restaurant that offered high-quality, mainstream American dishes at affordable prices. In 1983, the Palmers sold the company to W. R. Grace and Company. Under the deal, Bill Palmer remained with the company as president to help guide the transition. He went on to become an Applebee’s franchisee in 1985.W. R. Grace and Company renamed the restaurant Applebee’s Neighborhood Grill &amp; Bar and established Applebee’s International, Inc. as its franchisor in 1988. Over the next few decades, Applebee’s grew exponentially around the U.S., as well as internationally. By 2000, the chain grew to 1,250 locations.In 2007, IHOP Corp. (now Dine Brands Global) acquired Applebee’s for&nbsp;<a href="https://investors.dinebrands.com/news-releases/news-release-details/ihop-corp-successfully-completes-acquisition-applebees?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">$2.1 billion</a>. Ten years later though, the chain started&nbsp;<a href="https://www.eatthis.com/applebees-closing-locations-nationwide/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">closing hundreds of locations</a> due to declining sales. Applebee's now has nearly 2,000 locations across all 50 states and more than 15 international countries and territories.&nbsp;Today, Applebee’s still considers inquiries from potential franchisees interested in multi-restaurant operations and development. Potential restaurant acquisitions exist in the U.S. plus development territories in Arizona, Illinois, Connecticut, Maryland, Northern Texas, Ohio and South Central Pennsylvania.<h2>What Is Applebee's Business Model?</h2>Applebee's business model revolves around the franchise system, with nearly all of its locations owned and operated by franchisees. The franchise model offers diversified revenue streams, including dine-in service, curbside pickup and delivery services, in line with the changing trends in the restaurant industry.The Applebee's menu offers a broad range of food options, from healthier alternatives like salads to heartier dishes like steaks and burgers. The restaurant also has a well-known bar scene offering a variety of beers, wines and cocktails.Applebee's franchise owners are encouraged to be involved in local community events, sponsorships and fundraisers, adding a unique element of community involvement to the business model.Applebee's restaurants are typically located in high-visibility, high-traffic areas like shopping centers, mixed-use developments and free-standing buildings to attract a broad customer base.<h2>How Much Can Applebee's Franchise Owners Make?</h2>As a franchise system, Applebee's does not publicly disclose financial performance representations or return-on-investment data. Earnings can vary greatly, depending on factors like location and management. Potential franchisees should carefully review the franchise disclosure document (FDD) and speak with existing franchisees to better understand the potential financial performance.<h2>How Much Does It Cost to Open an Applebee's?</h2>According to Applebee's 2023 FDD, the total investment necessary to begin operation of an Applebee's franchise ranges from $2,009,201 to $8,266,730.<ul><li>Initial Organizational and Training Expenses (incorporation, legal and accounting fees, training, site location, and miscellaneous expenses): $75,000 to $120,000</li><li>Purchase of Land: $300,000 to $2,000,000</li><li>Building Costs (purchase, construction, remodeling, etc.): $556,000 to $2,600,000</li><li>Site Work: $50,000 to $500,000</li><li>Professional Services: $30,000 to $211,000</li><li>Permits/Fees: $1,500 to $75,000</li><li>Furniture, Fixtures, Equipment and Signage: $410,000 to $750,000</li><li>Point of Sale System: $20,000 to $45,000</li><li>Kitchen Display System: $12,000 to $18,000</li><li>Smallwares (dishes, silverware, other utensils, etc.): $25,000 to $35,000</li><li>Initial Inventory: $25,500 to $47,300</li><li>Pre-Opening Expenses (insurance, legal, accounting, personnel, and training expenses): $55,000 to $100,000</li><li>Applicant’s Fee: $0 to $15,000</li><li>Franchise Fee Deposit: $0 to $10,000</li><li>Initial Franchise Fee: $35,000 (if franchise fee deposit paid, then less $10,000, for a total of $25,000)</li><li>Initial Advertising Expense: $5,000 to $40,000</li><li>Liquor License(s): $500 to $1,000,000</li><li>Apple Supply Chain Co-Op Stock Purchase: $0 to $100</li><li>On-Line Ordering: $56 to $150 per month</li><li>Europay, Mastercard and Visa (EMV) Point-to-Point (P2P) Encryption Services: $1,500 to $3,000</li><li>Wi-Fi Services: $90 to $400 per month</li><li>Wi-Fi Equipment: $300 to $600</li><li>Digital Products Service Fee: $150 to $350 per month</li><li>Server Tablet Maintenance Fee: $0 to $1,000 per year</li><li>Implementation Fees: $240 to $450</li><li>Menu Management Platform Fee: $0 to $150 per month</li><li>Customer Relationship Management (“CRM”) Fee: $0 to $150 per month</li><li>Gateway Processing Fee: $66 per month</li><li>Waitlist: $0 to $69 per month</li><li>ROSnet — Food Cost, Labor, and Business Analytics Reporting Service: $200 set up per location; $75 to $225 per month (depending on modules selected)</li><li>Campaign/Menu Training: $30 per year</li><li>Training: Applebee’s University (or a future learning management system training program provided by the franchisor) or Your Selected Training Program Approved by the Franchisor: $120 per year</li><li>Extra Manuals: $0 to $250 per set</li><li>Operating Expenses During First Three Months: $405,000 to $655,000</li><li>Total: $2,009,201 to $8,266,730</li></ul><h2>Who’s On the Applebee's Leadership Team?</h2> &nbsp;<ul><li><a href="https://www.linkedin.com/in/john-peyton-74354b3?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">John Peyton — Chief Executive Officer, Dine Brands Global, Inc.</a></li><li><a href="https://www.linkedin.com/in/sarahcannon-foster?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">Sarah Cannon-Foster — Chief People Officer</a></li><li><a href="https://www.linkedin.com/in/vanceychang?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">Vance Chang — Chief Financial Officer</a></li><li><a href="https://www.linkedin.com/in/gary-dubois-3aa13b4?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">Gary Dubois — Vice President, Quality Assurance</a></li><li><a href="https://www.linkedin.com/in/scott-gladstone-44547bb?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">Scott Gladstone — President, International And Corporate Development</a></li><li><a href="https://www.linkedin.com/in/tony-moralejo-57738919?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">Tony Moralejo — President, Applebee's</a></li><li><a href="https://www.linkedin.com/in/susan-nelson-77a2627?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">Susan Nelson — Sr. Vice President, Chief Communications &amp; Public Affairs Officer</a></li><li><a href="https://www.linkedin.com/in/justin-e-skelton-mba-74a08b4?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">Justin Skelton — Chief Information Officer</a></li><li><a href="https://www.linkedin.com/in/christine-son-95574023?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">Christine Son — Sr. Vice President, Legal General Counsel &amp; Secretary</a></li></ul><h2>What Helpful Articles Can I Read to Learn More About Applebee's?</h2><ul><li><a href="https://www.fsrmagazine.com/chain-restaurants/applebees-accelerates-new-era-dining?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">Applebee’s Accelerates a New Era of Dining</a></li><li><a href="https://www.franchisetimes.com/top-500-2022/32-applebee-s/article_4247da8e-23e6-11ed-8352-23ebcbe382cf.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">32. Applebee's | Top-500-2022 | franchisetimes.com</a></li><li><a href="https://www.restaurantbusinessonline.com/financing/applebees-development-plans-hit-snag?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">Applebee's development plans hit a snag</a></li><li><a href="https://www.nrn.com/casual-dining/new-applebee-s-chief-tony-moralejo-value-experience?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data-2722848" target="_blank" rel="nofollow">New Applebee's president Tony Moralejo on the value experience</a></li></ul>Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction. All content in this article is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

Franchise Deep Dive: Applebee's Franchise Costs, Fees, Profit and Data

1851 Franchise

With a menu that emphasizes variety, a casual dining experience and affordable price points, Applebee's stands out in the vast sea of casual dining restaurant franchises. 

franchise-deep-dive-applebees-franchise-costs-fees-profit-and-data

Children's Lighthouse

Children's Lighthouse - How Children's Lighthouse Stands Out - Early Education Franchise - 1851

How Children's Lighthouse Is Pioneering Top Notch Curriculum in the Early Education Segment

how-childrens-lighthouse-is-pioneering-top-notch-curriculum-in-the-early-education-segment

How This Children’s Lighthouse Leadership Team Member Applies Her Background in Franchising To Help Franchisees Succeed

how-this-childrens-lighthouse-leadership-team-member-applies-her-background-in-franchising-to-help-franchisees-succeed

Biscuit Belly Franchising

How Biscuit Belly's "Damn Good" Biscuits Are Proving Breakfast Is Big Business 

how-biscuit-bellys-damn-good-biscuits-are-proving-breakfast-is-big-business

Paris Baguette

Paris Baguette's Culinary Creativity Drives Guest Affinity and Franchisee Success

paris-baguettes-culinary-creativity-drives-guest-affinity-and-franchisee-success

Seniors Helping Seniors®

Seniors Helping Seniors® In-Home Care Services Expands in Napa Valley, California

seniors-helping-seniors-in-home-care-services-expands-in-napa-valley-california

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

Login

facebook

instagram

twitter

linkedin

youtube

Fast Company: KFC Introduces Spin Off Restaurant, Saucy

fast-company-kfc-introduces-spin-off-restaurant-saucy

Subway Seals the Deal: PepsiCo Beverages Coming to U.S. Locations in 2025

subway-seals-the-deal-pepsico-beverages-coming-to-us-locations-in-2025

Malaysian Franchise Association (MFA) - AFC and FIM 2025 - 1851 Franchise News

Malaysia Focuses on Franchise Growth Through AFC and FIM 2025

malaysia-focuses-on-franchise-growth-through-afc-and-fim-2025

Hilton and Grubhub Expand Mobile Delivery Services to Over 2,600 Hotels

hilton-and-grubhub-expand-mobile-delivery-services-to-over-2600-hotels

Taco Bell Joins the Beverage Boom With New Live Más Café Concept

taco-bell-joins-the-beverage-boom-with-new-live-mas-cafe-concept

Tiam Behdarvandan’s Let’s Get Moving Offers a Franchise Opportunity Rooted in Growth and Support

tiam-behdarvandans-lets-get-moving-offers-a-franchise-opportunity-rooted-in-growth-and-support

How Bella Ballerina Is Redefining Dance Studio Franchising With a Community-Focused and Scalable Business Model

how-bella-ballerina-is-redefining-dance-studio-franchising-with-a-community-focused-and-scalable-business-model

Dennis Cieri Shares How Fitness Factory Health Clubs Blends Strategic Growth with Franchisee-Centric Support

dennis-cieri-shares-how-fitness-factory-health-clubs-blends-strategic-growth-with-franchisee-centric-support

The Ace Up Their Sleeve: How Ace Handyman Services Matters Found the Perfect Partner in Ace Hardware

the-ace-up-their-sleeve-how-ace-handyman-services-matters-found-the-perfect-partner-in-ace-hardware

How To Set up Digital Marketing for Your Franchise Brand

how-to-set-up-digital-marketing-for-your-franchise-brand

Air Force Veteran and Family Find Perfect Fit with TruBlue Franchise in Fort Collins, Colorado

air-force-veteran-and-family-find-perfect-fit-with-trublue-franchise-in-fort-collins-colorado

What Are the Best Burger Franchises To Invest In?

What Are the Best Burger Franchises For Entrepreneurs Invest In?

what-are-the-best-burger-franchises-to-invest-in

Franchise Deep Dive: Applebee's Franchise Costs, Fees, Profit and Data

MORE STORIES LIKE THIS