Applebee’s Franchise FDD, Profits & Costs (2026)
Applebee’s, launched in 1980 in Decatur, Georgia, has grown from a local eatery to a global casual dining giant within Dine Brands Global’s portfolio. Known for its neighborhood grill concept, it offers a diverse menu appealing to a wide audience.
Applebee’s franchising, initiated soon after its inception, has been pivotal in its growth, inviting entrepreneurs to partake in its success story. The headquarters, now in Glendale, California, symbolizes its journey from a local favorite to an international dining destination.
Applebee’s differentiates itself in the highly competitive casual dining market through its commitment to serving classic bar and grill dishes crafted from high-quality ingredients. T
he brand prides itself on offering these culinary delights at reasonable prices, coupled with genuine hospitality and service that makes every visit memorable.
Initial Investment
How much does it cost to start a Applebee’s franchise? It costs on average between $617,000 - $5,823,000 to start a Applebee’s franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
Applebee’s offers 3 investment options:
| Type of Restaurant | Initial Investment Range |
|---|---|
| Tower II Prototype Restaurant | $3,870,004 to $5,822,933 |
| Celebration Prototype Restaurant | $3,192,516 to $5,076,178 |
| Dual Branded Restaurant Concept | $616,682 to $4,632,445 |
The detailed investment estimate below summarizes the estimated initial investment for a Celebration Prototype Restaurant.
For more information on the costs required to start an Applebee’s franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Organizational and Training Expenses | $75,000 to $82,688 |
| Purchase of Land | Variable |
| Building Costs – Celebration Prototype | $1,453,120 to $1,961,712 |
| Site Work – Celebration Prototype | $129,918 to $177,783 |
| Professional Services – Celebration Prototype | $97,820 to $133,858 |
| Permits/Fees | $26,000 to $28,900 |
| Furniture, Fixtures, Equipment and Signage – Celebration Prototype | $873,348 to $960,683 |
| POS System – Applebee’s | $12,000 to $25,000 |
| POS System License Fees | $850 to $4,000 |
| Kitchen Display System | $2,500 to $5,000 |
| Smallwares | $39,779 to $43,966 |
| Initial Inventory | $25,500 to $28,000 |
| Pre-Opening Expenses | $15,000 to $100,000 |
| Applicant’s Fee | $0 to $15,000 |
| Franchise Fee Deposit | $0 to $10,000 |
| Initial Franchise Fee | $35,000 |
| Initial Advertising Expense | $5,000 to $10,000 |
| Liquor License(s) | $500 to $1,000,000 |
| Apple Supply Chain Co-op Stock Purchase | $0 to $100 |
| On-Line Ordering | $65 to $200 per month |
| Europay, Mastercard, and Visa Point to Point Encryption Services | $1,350 to $4,500 |
| Wi-Fi Services | $100 to $450 per month |
| Wi-Fi Equipment | $1,200 to $3,000 |
| Digital Products Service Fee | $21 to $100 per month |
| Server Tablet Maintenance Fee for A1 POS | $500 per year |
| Implementation Fees | $800 to $3,500 |
| Menu Management Platform Fee | $90 to $180 per month per Restaurant |
| Customer Relationship Management Fee | $0 to $250 per month |
| Gateway Processing Fee | $63 per month |
| Guest Waitlist Management | $30 to $150 per month |
| BOH Reporting – Food Cost, Labor and Business Analytics Reporting Service | $200 setup per location; $75 to $400 per month |
| Gamification ShiftOne | $45 to $70 per month |
| To Go Accuracy Printer for A1 POS | $550 to $650 |
| Campaign/Menu Training | $1,000 per year |
| Extra Manuals | $0 to $250 per set |
| Operating Expenses During First Three Months | $405,000 to $450,000 |
| POS MDM Fee | $50 to $100 per month |
| Total Estimated Initial Investment | $3,192,516 to $5,076,178 |
Average Revenue (AUV)
How much revenue can you make with a Applebee’s franchise? A Applebee’s franchised restaurant makes on average $2,823,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
Applebee’s Franchise Disclosure Document
Frequently Asked Questions
How many Applebee’s locations are there?
As of the latest available data, Applebee’s operates approximately 1,475 locations worldwide. Of these, the vast majority are franchise-owned, with about 1416 locations run by franchisees. The remaining 59 are company-owned. This reflects Applebee’s strategy of predominantly relying on a franchising model for its growth and operations.
What is the total investment required to open a Applebee’s franchise?
The total investment required to open a Applebee’s franchise ranges from $617,000 - $5,823,000.
What are the ongoing fees for a Applebee’s franchise?
Applebee’s franchisees pay an ongoing royalty fee of 4.00% of gross sales, along with a marketing fee that is typically 4.25% of gross sales. These fees cover the use of the brand and support national and local marketing initiatives.
Who owns Applebee’s?
Applebee’s is owned by Dine Brands Global, Inc., which also owns IHOP. Dine Brands Global, formerly known as DineEquity, acquired Applebee’s in 2007. The company operates as a franchisor, with most of its Applebee’s locations being run by franchisees rather than directly owned by the corporation.
Disclaimer
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Research Applebees franchise data: For the full FDD cost breakdown, investment tables, and Item 19 disclosures, visit FranchisePayback.com → Applebees FDD Review.
