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

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.

By Luca Piacentini1851 Franchise Managing Editor

9:09AM • 07/01/23

LAST UPDATED: June 14, 2023

FRANCHISE WEBSITE: https://www.applebees.com/en/opportunities/domestic/domestic-request

NUMBER OF LOCATIONS: Nearly 2,000

REPORTED COST TO GET IN: $2,009,201 to $8,266,730

REPORTED ROI (Item 19): Data not publicly available

Applebee's is a well-recognized casual dining franchise owned by Dine Brands Global. 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.

How Many Applebee's Locations Are There?

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 & 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 $2.1 billion. Ten years later though, the chain started closing hundreds of locations due to declining sales. Applebee's now has nearly 2,000 locations across all 50 states and more than 15 international countries and territories.

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.

What Is Applebee's Business Model?

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.

How Much Can Applebee's Franchise Owners Make?

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.

How Much Does It Cost to Open an Applebee's?

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.

Initial Organizational and Training Expenses (incorporation, legal and accounting fees, training, site location, and miscellaneous expenses): $75,000 to $120,000
Purchase of Land: $300,000 to $2,000,000
Building Costs (purchase, construction, remodeling, etc.): $556,000 to $2,600,000
Site Work: $50,000 to $500,000
Professional Services: $30,000 to $211,000
Permits/Fees: $1,500 to $75,000
Furniture, Fixtures, Equipment and Signage: $410,000 to $750,000
Point of Sale System: $20,000 to $45,000
Kitchen Display System: $12,000 to $18,000
Smallwares (dishes, silverware, other utensils, etc.): $25,000 to $35,000
Initial Inventory: $25,500 to $47,300
Pre-Opening Expenses (insurance, legal, accounting, personnel, and training expenses): $55,000 to $100,000
Applicant’s Fee: $0 to $15,000
Franchise Fee Deposit: $0 to $10,000
Initial Franchise Fee: $35,000 (if franchise fee deposit paid, then less $10,000, for a total of $25,000)
Initial Advertising Expense: $5,000 to $40,000
Liquor License(s): $500 to $1,000,000
Apple Supply Chain Co-Op Stock Purchase: $0 to $100
On-Line Ordering: $56 to $150 per month
Europay, Mastercard and Visa (EMV) Point-to-Point (P2P) Encryption Services: $1,500 to $3,000
Wi-Fi Services: $90 to $400 per month
Wi-Fi Equipment: $300 to $600
Digital Products Service Fee: $150 to $350 per month
Server Tablet Maintenance Fee: $0 to $1,000 per year
Implementation Fees: $240 to $450
Menu Management Platform Fee: $0 to $150 per month
Customer Relationship Management (“CRM”) Fee: $0 to $150 per month
Gateway Processing Fee: $66 per month
Waitlist: $0 to $69 per month
ROSnet — Food Cost, Labor, and Business Analytics Reporting Service: $200 set up per location; $75 to $225 per month (depending on modules selected)
Campaign/Menu Training: $30 per year
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
Extra Manuals: $0 to $250 per set
Operating Expenses During First Three Months: $405,000 to $655,000
Total: $2,009,201 to $8,266,730

Who’s On the Applebee's Leadership Team?

What Helpful Articles Can I Read to Learn More About Applebee's?

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