Applebee's

Applebee's

Information based on 2024 FDD

Food & Beverage · Full Service Restaurants

Investment min
$2M
Total: $2M–$7M
Avg gross revenue
$3M
Unit-level, 2024
Franchise fee
$35K
Per current disclosure
Royalty
4%
of gross revenue
Locations
1,542
Franchising since 1983

Description

What is Applebee's?

Applebee's stands as an iconic American casual dining restaurant chain that has been serving communities across the nation since 1980. Known for its neighborhood bar & grill concept, Applebee's offers a diverse menu featuring everything from signature riblets and hand-cut steaks to fresh salads and innovative appetizers, all served in a warm, welcoming atmosphere that combines modern comfort with classic American charm.

What sets Applebee's apart is its commitment to creating a genuine neighborhood experience where families, friends, and colleagues can gather to enjoy quality food at reasonable prices. The restaurant's popular 2-for deals, extensive happy hour offerings, and rotating seasonal specials have made it a go-to destination for value-conscious diners who don't want to compromise on taste or experience.

The brand has successfully adapted to changing consumer preferences while maintaining its core identity as America's favorite neighborhood grill. Each location features multiple TVs for sports viewing, a full-service bar with signature cocktails, and a mix of booth and table seating to accommodate various dining occasions. Their commitment to customer service is evident through their highly trained staff who consistently deliver attentive, friendly service.

Applebee's continues to innovate with modern conveniences like their Carside To-Go service and digital ordering platforms while maintaining the personal touch that has made them a staple in communities nationwide. Their menu regularly incorporates new trends and flavors while keeping beloved classics that customers have enjoyed for decades.
  • 44 years proven restaurant experience
  • 1,542 locations nationwide market presence
  • Established casual dining brand recognition
  • Comprehensive operational support systems
  • Strong average unit volume performance
  • Mature franchise infrastructure stability

Location Analysis

Where Applebee's wins

Applebee's maintains a robust presence across multiple states, demonstrating strong market penetration in both urban and suburban markets. The franchise shows particular strength in the Northeast and Mid-Atlantic regions, with notable concentrations in New York, Michigan, and New Jersey. This regional density suggests effective supply chain optimization and strong brand recognition in these markets.

Customer satisfaction metrics are solid, with consistently positive ratings across numerous customer reviews, indicating reliable service quality and operational excellence. The highest performing locations tend to be situated in high-traffic suburban areas with strong median household incomes and proximity to retail centers.

Key expansion opportunities exist in the Southeast and Western markets, where demographic trends and suburban growth patterns align with Applebee's target customer base. Successful locations typically feature high visibility from major thoroughfares, ample parking, and proximity to complementary retail in areas with household incomes above $50,000.

Ideal locations should target communities with substantial population density within a 3-mile radius, strong daytime employment bases, and limited direct competition from other casual dining chains. The franchise's proven success in diverse markets suggests adaptability to various regional preferences while maintaining consistent operational standards.
Total US locations
1,542
Franchise units
1,542
Corporate locations
0
Avg. sq. footage
N/A

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Financial Analysis

The numbers behind Applebee's

Avg gross revenue$2,820,000
Investment range$2,428,029 – $7,084,006
Investment midpoint$4,756,018
Brand fund4.25%
Royalty4%
Franchise fee$35,000
Min. net worth
Min. liquid capital
Applebee's represents a **premium-tier investment** in the full-service restaurant sector, with capital requirements ranging from **$2.4M to $7.1M**—significantly exceeding the sub-sector averages of $1.1M-$2.3M. This substantial investment reflects the brand's established market position and comprehensive restaurant infrastructure requirements, including kitchen equipment, dining room buildout, and extensive technology systems.

The **$2.82M average gross revenue** substantially outperforms the sub-sector average of $1.6M, indicating strong market positioning within the competitive casual dining landscape. However, the full-service restaurant sector faces ongoing challenges from changing consumer preferences toward fast-casual concepts and delivery-focused models.

With **1,542 units** and **44 years of operational history** since 1980, Applebee's demonstrates exceptional system maturity and brand recognition. This extensive footprint provides operational stability and proven business model validation, though it may limit territory availability in prime markets.

Prospective investors require substantial liquid capital and restaurant management experience to navigate the operational complexity of full-service dining. The investment suits experienced multi-unit operators or well-capitalized entrepreneurs seeking established brand recognition in mature markets.

Key considerations include labor-intensive operations, evolving consumer dining preferences, and competitive pressure from emerging restaurant concepts. Territory rights and market protection become critical given the brand's extensive existing presence.

Ideal candidates possess **significant restaurant experience**, substantial capital reserves, and understanding of full-service operations. Market entry timing should consider local demographic trends and competitive landscape analysis. Thorough FDD review and comprehensive due diligence remain essential for investment evaluation.
Did you know? Did you know that opening an Applebee's franchise - America's beloved neighborhood grill and bar famous for its riblets, burgers, and "Eatin' Good in the Neighborhood" atmosphere - requires a total investment between $2,428,029 and $7,084,006, which includes the $35,000 franchise fee plus all the substantial costs needed to build out a full-service restaurant with kitchen equipment, dining room furnishings, signage, and working capital to serve your community?

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$2M–$7M
Most common
$2,428,029
Minimum
$4,756,018
Midpoint
$7,084,006
Maximum

Per FDD Item 7, total initial investment ranges from $2,428,029 to $7,084,006. The midpoint $4,756,018 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

FDD Item 19

Average gross sales

$4M$3M$2M$2M$800KN/A
$3M
2022
2023
2024
Avg
$940K
YOY change (2023 -> 2024)

According to Item 19 of the Franchise Disclosure Document, Applebee's has an average gross revenue of $3M. (Note: This information is based on the latest FDD in our records. Please review the Franchise Disclosure Document (FDD) and confirm this information directly with the brand. We make no claims of accuracy for the information presented.)

Growth over time

Franchise footprint

-2% YoY
2,5002,0001,5001,0005000
2017
2018
2019
2020
2021
2022
2023
2024
1,542 units open as of 2024 FDD-33 in last 12 mo

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Applebee's's 2024 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2024 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a Applebee's franchise typically ranges between $2,428,029.00 and $7,084,006.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

Applebee's
Applebee's
$3M avg revenue · 1542+ US franchises

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