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Applebee's Neighborhood Grill & Bar Franchise Cost, Revenue & Review 2026

Full-Service RestaurantsCAFranchising since 2014
BAbove averageAbove average65/100Editorial grade from public filings; not investment advice.
Investment
$2.4M – $7.1M
Disclosed sales
$2.8M
gross sales, not profit
SBA charge-off
Not SBA-matched

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-17345Data QualityExcellent95%FDD 2024 · 2yr old
Manager-run OKYes: Protected territory

Data from FDD filing

Analysis by FranchiseVerdict Research · Methodology

This data is from a 2024 FDD. Current terms may differ. Always verify with the franchisor's latest disclosure document.

Applebee's is a casual-dining franchise serving American grill fare and drinks in a neighborhood bar-and-grill setting. Franchisees operate full-service restaurants managing kitchen and bar staff, cost control, and takeout and delivery.

FranchiseVerdict summary · 2026

A Applebee's Neighborhood Grill & Bar franchise requires a total initial investment of $2.4M – $7.1M, including a $35K – $50K franchise fee and an ongoing 4.0% royalty[2]. Per the 2024 FDD, average unit revenue was $2.8M[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →

Sources, dates and evidence

FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago

Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.

Overview

Investment
$2.4M – $7.1M
39th pct Service Resta…
Avg gross sales
$2.8M
12th pct Service Resta…
Royalty
4.0%
3rd pct Service Resta…
Units
1,545
38th pct Service Resta…
SBA charge-off
N/A

Quick verdict · Full-Service Restaurants · color = vs category peers

Total Investment
$2.4M – $7.1M
Median $678K
above median ↑, worse than category
Franchise Fee
$35K – $50K
Median $40K
near median
Liquid Capital Req'd
$405K – $655K
Median $43K
above median ↑, worse than category
Avg Revenue
$2.8M
Median $1.6M
above median ↑, better than category
Royalty Rate
4.0%
Median 5.0%
below median ↓, better than category
Ongoing Fees
8.3% of rev
Median 7.0%
above median ↑, worse than category
SBA Charge-Off Rate
Not SBA-matched
Not matched to SBA 7(a) loans
System Size
1,545 units
Median 20 units
above median ↑, better than category
Turnover Rate
4.9%
Median 0.0%
Territory
Protected, not exclusive
Limits on the franchisor opening nearby; not an exclusive zone
Owner-Operator
Optional
Can hire a manager
Litigation
6 cases
Review carefully

Green = favorable by >10% vs Full-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)

Data from public FDD filings and SBA records. Not financial advice. Methodology

Bottom line

  • COSTTotal investment $2.4M – $7.1M including a $35K franchise fee, 4.0% ongoing royalty.
  • RETURNSAverage unit revenue of $2.8M/year (median $2.7M).
  • RISKVerdict B (Above average), verdict score 65/100 (higher is better).
  • GROWTHNegative: net -33 franchised outlets in the latest year (4 opened, 32 closed) (Item 20).
  • FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.

Item 1 · who you're contracting with

The Franchisor

Corporate structure & franchisor financials
Legal entity
Applebee's Franchisor LLC
Parent company
Dine Brands Global, Inc.
FDD Item 1, page 6 of the 2024 FDD
Predecessor
Applebee's International, Inc.
Prior franchisor entity
CEO title
Chief Executive Officer, Dine Brands
John Peyton
Incorporated in
DE
HQ
10 W. Walnut St., 5th Floor, Pasadena, California 91103
Auditor
Ernst & Young LLP
Audited financials
Franchisor revenue
$119.4M
vs $98.9M prior year

Affiliated brands

  • IHOP Franchisor

Other brands the franchisor or its parent operates (Item 1).

Same owner · FDD Item 1, page 6

3 other brands on this site name Dine Brands Global, Inc. as parent or ultimate parent in their own FDD.

Grouped by the owner's name as each filing prints it (this page: the 2024 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.

Overview

About

CEO
John Peyton
Headquarters
CA
Founded
1988
FDD year
2024
States available
51

Can you afford it, and what does the money buy?

Entry cost runs 602% above the typical full-service restaurants franchise.

Total investment (Item 7)$2.4M – $7.1MCited, not corroborated — printed on page 20 of the 2024 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$35,000Cited, not corroborated — printed on page 19 of the 2024 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Royalty4.0%Cited, not corroborated — printed on page 14 of the 2024 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Ad fund4.3%Cited, not corroborated — printed on page 14 of the 2024 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$405K – $655K

Source: FDD 2024 · Items 5–7

Full Item 7 breakdown36 line items

Initial investment breakdown

Item 7 initial investment line items
Line itemLowHigh
Initial Organizational and Training Expenses$75K$120K
Purchase of Land——
Building Costs$810K$2.3M
Site Work$375K$1.3M
Professional Services$64K$230K
Permits/Fees$35K$105K
Furniture, Fixtures, Equipment and Signage$495K$805K
POS System$17K$45K
POS System License Fees$4K$8K
Kitchen Display System$2K$2K
Smallwares$20K$50K
Initial Inventory$26K$47K
Pre-Opening Expenses$55K$350K
Applicant's Fee$0$15K
Franchise Fee Deposit$0$10K
Initial Franchise Fee$25K$35K
Initial Advertising Expense$5K$40K
Liquor License(s)$500$1.0M
Apple Supply Chain Co-op Stock Purchase$0$100
On-Line Ordering$56$150
Total initial investment$2.4M$7.1M

Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.

Item 7 · what it costs to open + operate

The Vitals

Total investment
$2.4M – $7.1M
Top 40% of category vs category
Liquid capital req'd
$405K – $655K
Top 40% of category vs category
Franchise fee
$35K – $50K
Top 40% of category vs category
Royalty
4.0%
typical 6–8%
Ad fund
4.3%
typical 3–5%
Total fee load
8.3%
vs 9–13% typical

Ongoing fees · Item 6

Applebee's Neighborhood Grill & Bar: Item 6 recurring fees
FeeAmount
Royalty4.0% of gross sales
Marketing / ad fund4.3% of gross sales
Technology fee$3K
Transfer fee$3K
Renewal fee$4K
Inventory (initial)$26K – $47K
Total fee load8.3% of rev

What do units actually make?

Average unit sales run 76% above the full-service restaurants norm.

Avg gross sales$2.8MCited, not corroborated — printed on page 51 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
Median gross sales$2.7MCited, not corroborated — printed on page 51 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
Item 19 typegross sales by region
Sample size1,531 outlets

Source: FDD 2024 · Item 19

Single-unit · not modelled

Returns at a glance

An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Applebee's Neighborhood Grill & Bar until someone supplies them — yours, in the models below.

—

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

Total invested capital · disclosed

$5.3M

Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.

ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

What one unit earns on your invested capital

Model A · Single-Unit Return

Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.

Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.

Returns model · single-unit ROIC

What would one Applebee's Neighborhood Grill & Bar unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearFDD
FDD Item 19 reports $2,820,000 per unit
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.

Total invested capital · what you put in to openFDD
FDD Item 7: $2.4M–$7.1M (midpoint used)
FDD reports $405K–$655K

Unlevered ROIC · per unit

Your modelled return on total invested capital, before any debt financing.

—

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$5.3M
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

What 25 units return when you use SBA financing

Model B · Return on Equity: Debt-Financed Acquisition

Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).

This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.

What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.

These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.

Item 19 · Source: 2024 FDD

Financial Performance

Avg gross sales
$2.8M
Per unit, per year
Median gross sales
$2.7M

Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.

Item 19 type
gross sales by region
Sample size
1,531 outlets
vs category median 18 · large
Range (low → high)
$830K→$11.5MCited, not corroborated — printed on page 51 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
Cohort dispersion (min → max)
Reporting year
2023
Fiscal year the figures cover
Source filing
FDD 2024
Disclosed in the 2024 filing, covering 2023
Transparency
4 / 10
vs category median 3 / 10 · above
Gross sales rank12th
Item 19 reporting methods vary across brands
Investment cost rank39th
Lower investment ranks lower (better)
Royalty rate rank3th
Lower royalty = lower percentile (better)
Unit count rank38th
vs Full-Service Restaurants peers
Risk score rank15th
Lower risk = lower percentile (better)

Compared against 801 Full-Service Restaurants brands

Showing the headline figures — all 153 extracted fields are in the Full FDD Report · $19 →
Revenue insight

Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.

Operator outlook

What the numbers say

Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.

Unit economics

Average unit generates $2.8M/year in gross sales. Revenue-to-investment ratio: 0.6x.

Fee burden

Total ongoing fee load of 8.3% — above the Full-Service Restaurants median of 7.0%.

Disclosure

Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.

Operator retention

System roughly stable (+1.8% 3-year CAGR) with 1,545 units.

Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.

vs Full-Service Restaurants medians

How Applebee's Neighborhood Grill & Bar Compares

Metric
Applebee's Neighborhood Grill & Bar
Category median
vs median
Investment
$4.8M
$678Kmiddle half $427K–$1.3M · n=326
Above median, worse than category
Revenue
$2.8M
$1.6Mmiddle half $885K–$2.4M · n=122
Above median, better than category
Unit Count
1,545
20middle half 6–73 · n=308
Above median, better than category

Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.

Is the system healthy?

Total units1,545Cited, not corroborated — printed on page 52 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
3-yr growth-3.9% (worth scrutinizing)
Turnover rate4.9% (favorable vs category)

Source: FDD 2024 · Item 20

Unit growth

Item 20 · unit dynamics

The Growth Chart

Total units
1,545
Opened
4
Last reporting year
Closed
32
Terminated
2
Franchisor ended the franchise (per Item 20)
Non-renewed
3
Term expired, not renewed (per Item 20)
Turnover rate
4.9%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (3-yr)
-3.9%
Net unit change over 3 years
3-yr CAGR
+1.8%
Compounded over last 3 years

Last fiscal year · Item 20 exits and transfers

Terminated
2
Not renewed
3
Transferred
6
Reacquired
0
Franchisor bought back
Signed, not yet open
0
0.00 per open outlet · Item 20 Table 5
Projected new
5
Franchisor's next-year forecast
2021
1,518
Franchised units
2022
1,578+60
Franchised units
2023
1,545-33
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 49 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Active operators · 49 states
No contacts on file

States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.

Where the owners are · Item 20 owner list

1,542 current owners across 49 states.

  • CA 112
  • NY 95
  • TX 91
  • FL 88
  • MI 83
  • OH 76
  • PA 75
  • GA 58
  • IN 56
  • NJ 55
  • VA 48
  • MN 45
  • +37 more states

Counts only, from the list the franchisor prints in Item 20; 3 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.

SBA loan performance

Government records

SBA Loan Data

Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

What could kill this investment?

SBA charge-offNot SBA-matched
Verdict score65/100 (higher is better)
Litigation6 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

BAbove average65Verdict score 65/100

Applebee's presents elevated risk due to contracting unit base, undisclosed profitability, material litigation including consumer fraud claims, and absence of verified franchisee income benchmarks relative to substantial capital requirements.

Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.

Low confidence±15 pts
5080

Bankruptcy (Item 4)

Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s

Vance Chang, CFO, was CFO of YogaWorks, Inc. which filed Chapter 11 bankruptcy on October 14, 2020 in the U.S. Bankruptcy Court for the District of Delaware due to COVID-19 pressures.

Audited financials (Item 21)

Yes · Ernst & Young LLP

Franchisor revenue (Item 21)

Yr 1: $119.4MYr 2: $98.9MNon-royalty: $1.6M

Franchisor entity revenue (not unit-level)

Franchisor is Applebee's Franchisor LLC. Statements of Income report a single revenue line "Franchise revenues" of $119,430 thousand (FY ended Dec 31, 2023) and $98,937 thousand (FY ended Jan 1, 2023). "Other income, net" of $1,600 thousand is reported separately below operating expenses, not within revenues. Figures originally reported in thousands. Audited by Ernst & Young LLP (report dated March 20, 2024).

Supplier relationship · Items 8 & 16

  • Franchisor sells you products: Yes
  • Kickbacks from required suppliers: Yes
  • Must buy proprietary products: Yes
  • Restricted to system-approved products: Yes

Score breakdown · what drove the 65 / 100 verdict

  1. 01MINORNegative unit growth (-2.1% YoY) indicates systemic contraction despite $2.8M average revenue
  2. 02MINORMaterial gap between average revenue ($2.82M) and investment range ($2.43M-$7.08M) suggests highly variable unit performance and profitability uncertainty
  3. 03MINORAbsence of Item 19 (net income disclosure) prevents validation of actual franchisee profitability relative to $2.43M-$7.08M investment
  4. 04HIGHMultiple concluded litigations including consumer fraud class action (Candice Watkins - menu pricing) and ADA compliance failures indicate operational/compliance risks
  5. 05MINOR20-year term locks franchisees into declining system; refranchising trend suggests franchisor may be exiting underperforming markets
  6. 06MINORHigh royalty rate (4%) on declining sales volumes reduces unit-level cash flow recovery potential

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 153 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail6 matters · Item 3

Litigation cases

The franchisor

Concluded (4)

  • Himelda Mendez v. Applebee’s Restaurants LLC

    settled

    Third-party plaintiff · filed 2019-10-24 · United States District Court for the Southern District of New York · 1:19-cv-9861

    “Himelda Mendez v. Applebee’s Restaurants LLC (United States District Court for the Southern District of New York), Case No. 1:19-cv-9861. On October 24, 2019, Himelda Mendez filed a class action complaint against Applebee’s, alleging that Applebee’s failed to include Braille on its gift cards, in violation of the ADA and New York disability access laws.”Page 12 of the 2024 FDD, Item 3

    Outcome:“The matter settled for $7,000 and was dismissed on July 29, 2020.”

  • Vampire Family Brands, LLC v. Applebee’s Restaurants, LLC, et al.

    settled

    Third-party plaintiff · filed 2019-10-27 · United States District Court for the Central District of California · 2:19-cv-9222

    “Vampire Family Brands, LLC v. Applebee’s Restaurants, LLC, et al. (United States District Court for the Central District of California), Case No. 2:19-cv-9222. On October 27, 2019, Plaintiff filed a complaint against six current and former franchisees, and Applebee’s, alleging claims for trademark infringement, unfair competition, and dilution/tarnishment.”Page 12 of the 2024 FDD, Item 3

    Outcome:“On April 8, 2021, the matter settled for $320,000 to be paid to Plaintiff.”

  • Applebee’s Restaurants, LLC, et al. v. RMH Franchise Corporation, et al.; RMH Franchise Holdings, Inc. (bankruptcy)

    settled

    Brought against a franchisee · filed 2018-05-08 · United States District Court for the District of Kansas; United States Bankruptcy Court for the District of Delaware · 2:18-cv-02226-JAR-TJJ; Bankr. 18-11092-BLS

    “Applebee’s Restaurants, LLC, et al. v. RMH Franchise Corporation, et al. (United States District Court for the District of Kansas), Case No. 2:18-cv-02226-JAR-TJJ, and RMH Franchise Holdings, Inc., (United States Bankruptcy Court for the District of Delaware), Case No. 18-11092-BLS.”Page 13 of the 2024 FDD, Item 3

    Outcome:“On December 11, 2018, the parties reached a settlement wherein franchisor agreed to support franchisee’s reorganization and franchisee paid past due royalties and advertising fees, as well as unsecured claims for damages, for a total of $14,255,326.”

  • Applebee’s Restaurants LLC, et al. v. Michael D. Olander Sr.

    dismissed

    Brought against a franchisee · filed 2017-11-09 · United District Court for the District of Kansas [sic] · 2:17-cv-02650-DDC-JPO

    “Applebee’s Restaurants LLC, et al. v. Michael D. Olander Sr. (United District Court for the District of Kansas), Case No. 2:17-cv-02650-DDC-JPO. On November 9, 2017, Applebee’s filed this collection action. Opposing party was a principal shareholder of an Applebee’s franchisee.”Page 13 of the 2024 FDD, Item 3

    Outcome:“On December 17, 2018, Applebee’s filed a notice of dismissal with prejudice.”

Parent, affiliates and predecessor

Concluded (2)

  • Heartland Consumer Products, LLC, et al. v. DineEquity, Inc., et al.

    settled

    Third-party plaintiff · DineEquity, Inc. (now Dine Brands Global, Inc., the franchisor's parent) and its affiliates · filed 2017-04-03 · United States District Court for the Southern District of Indiana · 1:17-cv-01035-SEB-TAB

    “Heartland Consumer Products, LLC, et al. v. DineEquity, Inc., et al. (United States District Court for the Southern District of Indiana), Case No. 1:17-cv-01035-SEB-TAB. On April 3, 2017, Heartland Consumer Products LLC and TC Heartland LLC, the manufacturer of a sucralose-based sugar substitute branded as Splenda”Page 13 of the 2024 FDD, Item 3

    Outcome:“On September 26, 2018, the parties reached a settlement, wherein DineEquity agreed to allow the Plaintiff’s tabletop sweeteners to be the exclusive tabletop sweeteners in the system.”

  • Candice Watkins v. DineEquity, Inc. et.al.

    dismissed

    Third-party plaintiff · DineEquity, Inc. (now Dine Brands Global, Inc., the franchisor's parent) et al. · filed 2011 · Superior Court New Jersey, Camden County (removed to federal court; appeal to the Third Circuit) · L-5406-11

    “Candice Watkins v. DineEquity, Inc. et.al. (Superior Court New Jersey, Camden County, Case No. L- 5406-11). On or about October 31, 2011, named plaintiff Candice Watkins filed a class action lawsuit on behalf of herself and all others similarly situated”Page 13 of the 2024 FDD, Item 3

    Outcome:“Defendants filed another motion to dismiss the complaint, which was granted with prejudice on January 30, 2013. Plaintiff filed a Notice of Appeal on February 6, 2013, which was heard on November 7, 2013. On November 7, 2014, the Third Circuit affirmed the dismissal of the case.”

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

What are you signing up for?

Ongoing fees run about 8.3% of sales (royalty + ad fund), before rent and labor.

Initial term20 yrs
Renewal term5 yrs
TerritoryProtected, not exclusive
Initial training520 hrs

Source: FDD 2024 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term20 years
Renewal term5 years
Allowed renewalsℹ4
Territory typeProtected territory
Protected territoryYes
Exclusive territoryℹNo
Territory radius3 mi
Territory population40,000
Online sales rightsℹRestricted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Non-compete (years)ℹ2 years
Non-compete (miles)ℹ5 mi
Right of first refusalℹYes
Transfer requires consentYes
Termination notice30 days
Termination groundsℹ1
Curable defaultsℹ4
Mandatory arbitrationNo
Arbitration locationJohnson County, Kansas
Jury trial waiverYes
Governing lawKS
Litigation count6

Items 10, 11

Training & Operations

Classroom training
8 hrs
On-the-job training
622 hrs
Training location
Franchisee's approved training Restaurant
Ongoing training
Required
Time to open
18 mo
From signing to launch
Site selection
Franchisee selects; franchisor approves within 45 days
Franchisor financing
Not offered
Item 10
POS system
A1POS (transitioning to Nigel POS)
Operating tech stack

Items 5 & 11

Franchisor Support

✓Site selection assistance
✓Grand opening support
✓Lease negotiation help

Technology: A1POS (transitioning to Nigel POS)

Item 20 · call current owners

Franchisee Contacts

1,545 owners to call

Name · phone · city · state. Extracted from FDD Item 20

Unlock 1,545 contacts · $49
Free preview
(507) 645-••••MN
Unlock all 1,545 contacts
(209) 824-••••CA
(906) 253-••••MI
(724) 733-••••PA
(505) 508-••••NM

Frequently asked questions

Frequently Asked Questions

How much does it cost to open a Applebee's Neighborhood Grill & Bar franchise?

The total investment to open a Applebee's Neighborhood Grill & Bar franchise ranges from $2.4M – $7.1M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).

What do Applebee's Neighborhood Grill & Bar franchise owners earn?

According to Item 19 of the Applebee's Neighborhood Grill & Bar FDD, the average gross sales per unit is $2.8M. The median is $2.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.

Who owns Applebee's Neighborhood Grill & Bar?

Applebee's Neighborhood Grill & Bar is franchised by Applebee's Franchisor LLC. Its parent company is Dine Brands Global, Inc.. Source: FDD Item 1, 2024 filing.

What is Item 19 in the Applebee's Neighborhood Grill & Bar FDD?

The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Applebee's Neighborhood Grill & Bar FDD and qualifies whose outlets they describe.

What is Applebee's Neighborhood Grill & Bar's franchise failure rate?

SBA 7(a) loan charge-off data is not available for Applebee's Neighborhood Grill & Bar (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.

How many Applebee's Neighborhood Grill & Bar franchise locations are there?

As of their most recent FDD filing, Applebee's Neighborhood Grill & Bar has 1,545 total units in the United States, including 1,545 franchised units and 0 company-owned units. 4 new units were opened in the latest reporting year.

Is Applebee's Neighborhood Grill & Bar a good franchise to buy?

FranchiseVerdict rates Applebee's Neighborhood Grill & Bar as a B-grade franchise with a verdict score of 65 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.

Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.

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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.