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.
Franchise Costs
4% royalty + 4.25% ad fund + $450-$1,000/mo technology, software, and support fees
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
Key Insights
- Higher investment than 100% of Fast Food franchises
- Top 10 largest franchise system in Fast Food
- One of the lowest SBA loan default rates in Fast Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S Current | $3.9M – $5.8M | $35K | 4.0% | 1,460 |
| 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 |
| ARBY'S | $645K – $2.5M | $38K | 4.0% | 2,316 |
Fast Food Average 126 franchises | $594K – $1.5M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 126 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
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
1,471 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
1,471 Contacts Available
Unlock all APPLEBEE'S NEIGHBORHOOD GRILL & BAR AND APPLEBEE'S franchisee contacts with verified contact information
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
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.
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