Question 1

Is Applebee's Neighborhood Grill & Bar or Penn Station, Inc. cheaper to open?

Accepted Answer

Applebee's Neighborhood Grill & Bar costs $2,428,029–$7,084,006 and Penn Station, Inc. costs $440,600–$819,700 to open (FDD Item 7). Penn Station, Inc. has the lower entry cost.

Question 2

Which earns more, Applebee's Neighborhood Grill & Bar or Penn Station, Inc.?

Accepted Answer

Applebee's Neighborhood Grill & Bar reports $2,820,000 average annual unit revenue vs $819,903 for Penn Station, Inc. (FDD Item 19). Applebee's Neighborhood Grill & Bar is higher. For Penn Station, Inc.: Reported as net sales, not gross sales.

Question 3

Which is the better franchise, Applebee's Neighborhood Grill & Bar or Penn Station, Inc.?

Accepted Answer

FranchiseVerdict grades Applebee's Neighborhood Grill & Bar A and Penn Station, Inc. A, from FDD Items 5–7, 19–21 and SBA loan performance. See the full side-by-side above.

Metric	Applebee's Neighborhood Grill & Bar	Penn Station, Inc.
Verdict Grade	AStrongest tierStrongest tier	AStrongest tierStrongest tier
Investment Range	$2.4M – $7.1M	$441K – $820K
Franchise Fee	$35K	$25K
Royalty Rate	4.0%	Tiered monthly royalty on net sales: 0-2% on net sales <$30,000 (0% during 5-yr abatement window, else 2%); 3% on $30,000-$35,000; 4% on $35,000-$40,000; 5% on $40,000-$45,000; 6% on $45,000-$50,000; 7% on $50,000-$55,000; 8% on net sales >$55,000 (monthly tiers, "Current Royalty Rates")
Average Revenue (Item 19)	$2.8M	$820K
SBA Charge-Off Rate	N/A	2.0% (50 loans)
Total Units	1,545	322
Unit Growth (YoY)	N/A	N/A
Year Began Franchising	2014	1987
FDD Year	2024	N/A

Applebee's Neighborhood Grill & Bar vs Penn Station, Inc.