Is Applebee's (t. J.) Neighborhoo or Penn Station, Inc. cheaper to open?

Applebee's (t. J.) Neighborhoo costs $616,682–$5,822,933 and Penn Station, Inc. costs $440,600–$819,700 to open (FDD Item 7). Penn Station, Inc. has the lower entry cost.

Which earns more, Applebee's (t. J.) Neighborhoo or Penn Station, Inc.?

Applebee's (t. J.) Neighborhoo reports $2,954,522 average annual unit revenue vs $819,903 for Penn Station, Inc. (FDD Item 19). Applebee's (t. J.) Neighborhoo is higher. For Penn Station, Inc.: Reported as net sales, not gross sales.

Which is the better franchise, Applebee's (t. J.) Neighborhoo or Penn Station, Inc.?

FranchiseVerdict grades Applebee's (t. J.) Neighborhoo A and Penn Station, Inc. A, from FDD Items 5–7, 19–21 and SBA loan performance. See the full side-by-side above.

Applebee's (t. J.) Neighborhoo vs Penn Station, Inc.

Franchise Comparison 2026

Both Applebee's (t. J.) Neighborhoo and Penn Station, Inc. are full-service restaurants franchises. Applebee's (t. J.) Neighborhoo requires an investment of $617K – $5.8M while Penn Station, Inc. requires $441K – $820K. In terms of revenue, Applebee's (t. J.) Neighborhoo reports higher average unit revenue at $3.0M. Penn Station, Inc. has SBA lending data on file with a 2.0% charge-off rate. FranchiseVerdict rates Applebee's (t. J.) Neighborhoo A (Strongest tier) and Penn Station, Inc. A (Strongest tier).

Metric	Applebee's (t. J.) Neighborhoo	Penn Station, Inc.
Verdict Grade	AStrongest tierStrongest tier	AStrongest tierStrongest tier
Investment Range	$617K – $5.8M	$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)	$3.0M	$820K
SBA Charge-Off Rate	Limited data	2.0% (50 loans)
Total Units	1,480	322
Unit Growth (YoY)	N/A	N/A
Year Began Franchising	2014	1987
FDD Year	2026	N/A

Applebee's (t. J.) Neighborhoo

AStrongest tier

Penn Station, Inc.

AStrongest tier

Investment Range

$617K – $5.8M

$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)

$3.0M

$820K

SBA Charge-Off Rate

Limited data

2.0% (50 loans)

Total Units

1,480

322

Unit Growth (YoY)

N/A

Year Began Franchising