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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

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