APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S
Applebee’s Neighborhood Grill & Bar franchises operate sit-down, table-service restaurants specializing in uniform, high-quality, moderately priced food and alcoholic beverages in a distinctive, casual neighborhood atmosphere. The business model involves franchisees signing development and franchise agreements to build and operate restaurants using the franchisor's trademarks, recipes, operational procedures, training, and marketing support. They target a broad market including families, adult groups, and all ages seeking good value, fast service, and a fun dining experience.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
4% royalty + 4.25% ad fund + $450-$1,000/mo technology, software, and support fees
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: Historical gross sales data for 1,443 traditional franchised Applebee's Restaurants from January 1, 2024 to December 29, 2024.
Extracted Item 19 Section
How APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S Compares to Other Fast Food Franchises
Key Insights
- Higher investment than 100% of Fast Food franchises
- One of the lowest SBA loan default rates in Fast Food
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S Current | $3.9M - $5.8M | $35K | 4.0% | 1,460 |
| Burger King | $2.1M - $4.7M | $50K | 4.5% | 19,732 |
| MCDONALD'S | $1.5M - $2.6M | $45K | N/A | 12,772 |
| AFC | $45K - $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M - $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K - $728K | $35K | 6.0% | 2,647 |
Fast Food Average 127 franchises | $605K - $1.5M | $35K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 127 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+37 more states
SBA Loan History
Historical SBA 7(a) loan data for APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S franchisees (2011 - 2011)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
Primarily breach of contract disputes related to unauthorized restaurant closures, unpaid royalties and fees, and franchisee bankruptcy proceedings.
Bankruptcy (Item 4)
YogaWorks, Inc. (former employer of CFO Vance Chang) filed Chapter 11 on October 14, 2020.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S franchise?
The total initial investment to open a APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S franchise ranges from $3,870,004 to $5,822,933. This includes a franchise fee of $35,000. Ongoing royalty fees are 4.0% of gross sales.
How much revenue does a APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S franchise make?
According to the 2025 FDD, the average gross revenue for a APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S franchise is $2,760,000. The median revenue is $2,640,000.
How many APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S franchise locations are there?
As of the 2025 FDD, APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S has 1,460 franchise locations. The company has been franchising since 1988.
Can you get an SBA loan for a APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S franchise?
Yes, SBA loans are available for APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S franchises. Historical data shows 3 SBA 7(a) loans have been approved for APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S franchisees, with an average loan amount of $2,449,967. The historical default rate is 0.0%.
Is APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S a good franchise to buy?
APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S shows several positive indicators: established brand with 1,460+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
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