Applebee's Neighborhood Grill & BarFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Applebee's Neighborhood Grill & Bar franchise requires a total initial investment of $2.4M – $7.1M, including a $35K franchise fee and an ongoing 4.0% royalty[2]. Per the 2024 FDD, average unit revenue was $2.8M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $2.4M – $7.1M
- 48th pct Service Resta…
- Avg gross sales
- $2.8M
- 25th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 1,545
- 49th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.6x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Franchising since 1988. Systems this mature have refined operations and brand recognition.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $2.4M – $7.1M including a $35K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $2.8M/year (median $2.7M).
- Verdict A (Top Quintile) with a risk score of 48/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Applebee’s Franchisor LLC
- Parent company
- Dine Brands Global, Inc.
- Incorporated in
- DE
- HQ
- 10 W. Walnut St., 5th Floor, Pasadena, California 91103
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $98.9M
- vs $119.4M prior year
Affiliated brands
- IHOP Franchisor
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate casual dining establishments serving American-style food and beverages, managing kitchen/FOH staff, inventory, local marketing, and regulatory compliance (health, labor, ADA). Day-to-day involves staffing management, cost control, customer service oversight, and adherence to corporate operational standards across 2.8M average revenue units.
- CEO
- John Peyton
- Headquarters
- CA
- Founded
- 1988
- FDD year
- 2024
- States available
- 51
FDD Item 7 · 2024 filing · 36 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$275K
9.8% margin
Unlevered ROIC
5%
EBITDA / total invested capital
Payback
19.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $2.4M – $7.1M
- Near category avg vs category
- Liquid capital req'd
- $405K – $655K
- Near category avg vs category
- Franchise fee
- $35K – $50K
- Better than avg vs category
- Royalty
- 4.0%
- Gross Sales · typical 6–8%
- Ad fund
- 4.3%
- typical 3–5%
- Total fee load
- 8.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 4.3% of gross sales |
| Technology fee | $3K |
| Transfer fee | $3K |
| Renewal fee | $4K |
| Inventory (initial) | $26K – $47K |
| Total fee load | 8.3% of rev |
Financial Performance
- Avg gross sales
- $2.8M
- Per unit, per year
- Median gross sales
- $2.7M
- Item 19 type
- gross_sales
- Sample size
- 1531 units
- vs category median 13 · large
- Range (low → high)
- $830K→$11.5M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Full-Service Restaurants averages
How Applebee's Neighborhood Grill & Bar Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,545
- Opened
- 4
- Last reporting year
- Closed
- 37
- Turnover rate
- 2.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -2.1%
- Net unit change last year
- 3-yr CAGR
- +1.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 6
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 50 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).
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.
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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.
Litigation (Item 3)
15 case reference(s): 0 pending, 4 settled.
Largest disclosed settlement: $14
Bankruptcy (Item 4)
Disclosed in last 7 years
bankruptcy in the United States Bankruptcy Court for the District of Delaware due to COVID-19-related business pressures. YogaWorks has its principal place of business at 2215 Main Street, Santa Monica, CA 90405. Applebee’s - 03/24 FDD 8
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 48 / 100 rating
- 01MINORNegative unit growth (-2.1% YoY) indicates systemic contraction despite $2.8M average revenue
- 02MINORMaterial gap between average revenue ($2.82M) and investment range ($2.43M-$7.08M) suggests highly variable unit performance and profitability uncertainty
- 03MINORAbsence of Item 19 (net income disclosure) prevents validation of actual franchisee profitability relative to $2.43M-$7.08M investment
- 04HIGHMultiple concluded litigations including consumer fraud class action (Candice Watkins - menu pricing) and ADA compliance failures indicate operational/compliance risks
- 05MINOR20-year term locks franchisees into declining system; refranchising trend suggests franchisor may be exiting underperforming markets
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 4 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Kansas |
| Litigation count | 6 |
View Item 3 litigation summary
15 case reference(s): 0 pending, 4 settled.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 520 hrs
- Training location
- On-site at franchisee's restaurant
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- A1POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: A1POS
Item 20 · call current owners
Franchisee Contacts
1,551 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Applebee's Neighborhood Grill & Bar · FDD (2024) PDF
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.
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 1,460 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 A-grade franchise with a risk score of 48 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.