Applebees
Applebee's Neighborhood Grill & Bar offers sit-down dining with table service, serving food and alcoholic beverages. Known for casual dining, it operates in the restaurant industry.
About Applebees
Applebee's Restaurants LLC. is an American company that develops, franchises, and operates the Applebee's Neighborhood Grill + Bar restaurant chain. Applebee's focuses on casual dining, with mainstream American dishes such as salads, chicken, burgers, and "riblets".
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Applebees franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation ranges from $1,766,798 to $5,822,933. This includes the initial franchise fee of $35,000 to $50,000 that must be paid to the franchisor or an affiliate [p.1]. The total estimated initial investment also covers other costs such as construction, operating expenses for three months, and additional fees like on-line ordering services and training [p.21, p.24].
What is the initial franchise fee?
The initial franchise fee is $35,000 for each Restaurant opened during the initial development periods of the Development Agreement. This fee is to be paid simultaneously with the execution of the Franchise Agreement and is non-refundable [p.14, p.243].
What are the ongoing royalty and advertising fees?
The franchisee pays ongoing royalties and advertising fees based on a percentage of their gross sales as defined in the franchise agreement. These fees are recognized when the franchisee's reported sales occur [p.78, p.93, p.152, p.109, p.193].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not detail the duration of the initial franchise agreement or renewal terms beyond mentioning potential options for purchasing property or premises upon expiration [p.316].
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
Yes, you are granted a right to develop Restaurants only in the specified Territory [p.236]. However, this territory is not contingent on achieving certain sales volumes or market penetration [p.42].
What training and ongoing support does the franchisor provide?
The franchisor provides up to eight training personnel for approximately eight days before and six days after opening your first restaurant. This training covers Kitchen, To Go, Bar, and Dining Room areas. If you need more than eight trainers or a longer training period beyond 14 days, you will be responsible for the additional costs [p.31]. The franchisor also provides various activities to support the brand that are considered part of the single performance obligation related to the franchise license, though specific details on these services are not detailed in the provided excerpts [p.92, p.77, p.108, p.151, p.193].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may share actual records of an existing outlet if you are purchasing one, and they can provide financial performance information based on a reasonable basis, such as actual records or possible performance scenarios. However, they do not make any financial performance representations about future income for new franchisees without a reasonable basis [p.52, p.53]. Additionally, upon request, the franchisor will provide written substantiation for any financial performance representations included in the Disclosure Document [p.53].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering only those products and services specified in the Franchise Agreement and Manuals that meet the franchisor's standards and are purchased from approved suppliers [p.46]. You must also purchase or lease most items necessary for establishing and operating your Restaurant from sellers, lessors, distributors, or suppliers approved by the franchisor, with a list of approved suppliers provided to you [p.25].