Applebee’s
Founded nearly three decades ago on the principles of exceptional value and family fun, Applebee's Services, Inc., operates what is today the largest casual-dining chain in the world. This prominent eatery draws people of all ages and lifestyles with its fun, family-friendly atmosphere and signature bar and grill menu. Applebees differentiates itself with innovative attractions, like the popular Carside to Go service available at many of its restaurants, and its successful Weight Watchers agreement, enabling it to cater to those preferring less-caloric alternatives.
| |
Operating Units (in the U.S and its Territories) |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
1,470 |
1,470 |
1,553 |
| | % Change | -- |
0.0% |
5.6% |
| | Company-Owned |
405 |
398 |
309 |
| | % Change | -- |
.-1.7% |
-22.4% |
| | Total |
1,875 |
1,868 |
1,862 |
| | % Change | -- |
-0.4% |
-0.3% |
| | Franchised as % of Total |
78.4% |
78.7% |
83.4% |
Investment Required
The fee for an Applebee’s franchise is $35,000.
Applebee's provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item |
Established Low Range |
Established High Range |
| |
Initial Franchise Fee |
$35,000 |
$35,000 |
| |
Initial Organizational and Training Expenses |
$75,000 |
$120,000 |
| |
Purchase of Land |
$450,000 |
$1,500,000 |
| |
Building Costs |
$1,100,000 |
$1,350,000 |
| |
Site Work |
$72,000 |
$390,000 |
| |
Professional Services |
$65,000 |
$85,000 |
| |
Permits/Fees |
$50,000 |
$250,000 |
| |
Furniture, Fixtures, Equipment and Signage |
$550,000 |
$740,000 |
| |
POS System |
$38,000 |
$38,000 |
| |
Small Wares |
$25,000 |
$30,000 |
| |
Initial Inventory |
$25,500 |
$47,300 |
| |
Pre-Opening Expenses |
$55,000 |
$100,000 |
| |
Initial Advertising Expense |
$5,000 |
$40,000 |
| |
Liquor License(s) |
$500 |
$400,000 |
| |
Supply Chain Co-Op Stock Purchase |
$100 |
$100 |
| |
Additional Funds (3 Months) |
$405,000 |
$655,000 |
| |
Total Initial Investment |
$2,951,100 |
$5,780,400 |
Ongoing Expenses
Applebee’s franchisees pay ongoing fees equal to 4% of gross sales and advertising fees equal to 2.75%. Additional fees payable by franchisees include ongoing royalties to Weight Watchers and a cooperative advertising fund.
What You Get—Training and Support
From kitchen and service operations to marketing and business procedures, Applebee’s provides franchisees with a thorough and intensive training program before opening. Ongoing refresher course are available for every level of restaurant operations.
Franchisees can tap into Applebee’s well-established social media advertising campaign as well as Applebee’s One-to-One email marketing campaign. Ongoing support also includes access to Applebee’s Help Desk from the Restaurant Solution Center for any problems arising in the day-to-day operations of the restaurant.
Territory
Applebee's grants exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2011 Edition of Bond’s Top 100 Franchises publication.
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