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Applebee's Neighborhood Grill & Bar

Applebee's Franchisor LLC

Company Information

10 W. Walnut St., 5th Floor

Applebee’s Franchisor LLC was formed in Delaware on July 28, 2014. Their principal business address is 450 North Brand Boulevard, 7th Floor, Glendale, California 91203.

You will develop and operate Restaurants within a defined geographic area (“Territory”). You will use our various trademarks, construction specifications, designs, color schemes, signs and equipment for Restaurant premises, procedures and recipes for preparing food and beverage products, inventory, operations, and financial control methods, initial and ongoing management training and teaching techniques, and advertising and promotional services and assistance. Each franchise arrangement consists of two parts: a development agreement (“Development Agreement”) which requires you to open and operate at least one Restaurant pursuant to an initial development schedule and during the remaining term of the Development Agreement, and allows you to open and operate more Restaurants in the Territory, if needed; and separate franchise agreements (“Franchise Agreement(s)”) between you and us for your operation of each Restaurant. The Franchise Agreement names the location of the Restaurant and tells you your rights and obligations for that Restaurant. The Development Agreement and each Franchise Agreement will be between you and us, and if you are a corporation, all or some of your shareholders; and if you are a partnership, some or all your partners. Those people who sign as your shareholders or partners and who guarantee your financial obligations to us under a Development Agreement and Franchise Agreement are “Principal Shareholders.” Although the Agreements attached as Exhibits E and F assume that you are a corporate franchisee, we do consider other types of business entities (for example, general or limited partnerships and limited liability companies) which meet the requirements for franchisees described in the Agreements. In those cases, you must execute amendments to the Development Agreement and Franchise Agreement that conform those Agreements to your form of business structure. A sample form amendment is attached to the Development Agreement included as Exhibit E to the Disclosure Document and a sample form amendment is attached to the Franchise Agreement included as Exhibit F to this Disclosure Document. We intend to use and file, if and as appropriate, a separate franchise disclosure document to offer franchises for Applebee’s full-service Restaurants and new Applebee’s concepts for fast-casual and/or quickservice Restaurants to be located at another primary business or in conjunction with other businesses or at institutional settings such as schools, colleges and universities, military and other governmental facilities, hospitals, airports, travel plazas, casinos, stadiums, and any other site, venue or location operated by a master concessionaire or contract food service provider (a “Non-Traditional Venue”). The terms of such an offering may differ materially from the terms described in this Disclosure Document.

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

1/10

Investment Accessibility

1/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of Applebee's Neighborhood Grill & Bar Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $35,000 Maximum: $50,000

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $2,428,029 Maximum: $7,084,006

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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