Applebee’s^®

Food & Beverage • Year: 2025

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What Is Applebee’s?

Applebee’s is a casual-dining franchise specializing in moderately priced food and the sale of alcoholic beverages in a neighborhood-style casual setting. The primary service channel is full table-service dine-in restaurants, with optional online sales for delivery and development/testing of virtual brands and ghost kitchens. Franchise locations include traditional brick-and-mortar sites (free-standing buildings, strip centers, and shopping malls) as well as a wide range of non-traditional venues such as airports, hotels, hospitals, stadiums and other concession or institutional sites.

Applebee’s Franchise: Pros and Cons

The franchisor scores 100 on training and provides 400 hours of initial training, giving unusually thorough onboarding, but the system shows operator turnover and legal friction: 47 reacquired outlets, 6 non-renewals, 10 disclosed lawsuits, and 4 franchisor-initiated enforcement actions, which warrant deeper due diligence.

Pros

Training & support score is 100 and the franchisor provides 400 hours of initial training—both metrics are well above typical, which gives you unusually thorough onboarding and lowers the operational ramp-up risk.

With 1,507 outlets (well above typical for Food & Beverage), the brand has national scale—this generally delivers stronger brand recognition, supplier leverage, and tested operating systems you can copy.

A territory protection score of 60 is well above typical, meaning you’re more likely to get meaningful geographic exclusivity and less internal competition from the same brand.

Cons

There are 47 reacquired outlets (well above typical) alongside 6 non‑renewals, 10 disclosed lawsuits, and 4 franchisor‑initiated enforcement actions—this cluster points to operator turnover and recurring legal/frictional interactions between franchisees and the franchisor.

The franchisor operates 47 company‑owned units, well above typical for the sector—this level of corporate ownership can mean the franchisor competes directly in markets where you operate and may warrant deeper questions about their growth strategy and commitment to franchising.

Lawsuits & Legal Risk

88/100

NORMAL

The Facts: Recent and pending actions involve alleged breaches—unauthorized closures, unpaid royalties/fees, and related bankruptcy adversaries; several matters reflect active enforcement of system standards, while some disputes were resolved via settlement (e.g., trademark, ADA, royalty claims) without admission of liability. The Advice: Review franchise, guaranty, termination and bankruptcy provisions, royalty/audit clauses, and Item 12 territory protections; confirm cure, reorganization, and dispute-resolution procedures.

Territory Protection

60/100

Excellent

Grants a protected operating area where the franchisor will not place other physical units. The franchisor retains the right to sell via e-commerce and retail channels, to operate under different trademarks and in alternative venues, and to develop additional units in the surrounding market, reflecting market density considerations; franchisee relocation is permitted and no performance contingencies maintain protection.

Training & Support

100

Excellent

The brand provides an Extensive 400-hour training curriculum designed to prepare five individuals included in the initial fee, combining classroom instruction, systems training, and hands-on operational practice. The program includes on-site launch support for operational readiness; franchisees are responsible for travel and living expenses, and on-site support is provided for an additional fee.

Unit Growth Analysis

This franchise is in a steady but modest decline, falling from 1,575 units in 2023 to 1,542 in 2024 and 1,507 in 2025 (YoY changes ≈ -2.1% then -2.3%, latest -2.3%). For investors this signals a shrinking royalty and footprint—not a collapse, but persistent attrition or weak new-unit development—and the decline has slightly accelerated (about a 0.18 percentage-point increase in the negative growth rate), so review unit-level economics, closure reasons, and pipeline health before investing.

How Much Do Applebee’s Franchise Owners Make?

Applebee’s franchise locations reported average gross sales of $2,760,000 and median gross sales of $2,640,000 in 2025, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:

$2,760,000

Median Gross Sales:

$2,640,000

High Gross Sales:

$10,850,000

Low Gross Sales:

$890,000

Sample Size:

1443

Percent Attaining Average:

45.0%

Franchise vs Corporate Performance: Only franchised restaurant performance is reported (average gross sales 2,760,000); the disclosure does not provide any company-owned or corporate outlet financials for comparison.

Performance Variability Analysis: There is substantial variability across franchised units with a low of 890,000 and a high of 10,850,000, a median of 2,640,000 slightly below the mean of 2,760,000, and only 45% of outlets exceeding the average, indicating a right-skewed distribution driven by high outliers.

Data Scope and Limitations: The figures cover a defined 12-month 2024 period and are unaudited, self-reported by franchisees, and exclude certain outlet types, so results may not generalize to every potential location or to audited performance.

Frequently Asked Questions

What is the Applebee’s initial franchise fee?

The initial franchise fee for Applebee’s is $35,000, as stated in the 2025 FDD. This fee is paid upon signing the Franchise Agreement.

How much do Applebee’s franchise owners make?

Applebee’s franchise locations reported average gross sales of $2,760,000 and median gross sales of $2,640,000 in 2025, based on Item 19 of the Franchise Disclosure Document. Actual earnings vary by location, market, and operator experience.

Does Applebee’s have any franchise lawsuits or legal issues?

Applebee’s received a legal risk score of 88 out of 100 in the 2025 FDD analysis. The Facts: Recent and pending actions involve alleged breaches—unauthorized closures, unpaid royalties/fees, and related bankruptcy adversaries; several matters reflect active enforcement of system standards, while some disputes were resolved via settlement (e.g., trademark, ADA, royalty claims) without admission of liability.

Does Applebee’s offer exclusive franchise territories?

Applebee’s received a territory protection score of 60 out of 100. Grants a protected operating area where the franchisor will not place other physical units.

What training does Applebee’s provide to new franchisees?

Applebee’s received a training and support score of 100 out of 100. The brand provides an Extensive 400-hour training curriculum designed to prepare five individuals included in the initial fee, combining classroom instruction, systems training, and hands-on operational practice.

How many Applebee’s franchise locations are there?

Applebee’s had 1507 total locations as of the 2025 Franchise Disclosure Document.

What type of business is Applebee’s?

Applebee’s is a casual-dining franchise specializing in moderately priced food and the sale of alcoholic beverages in a neighborhood-style casual setting.

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