16 frequently asked questions answered with data from the 2025 Franchise Disclosure Document.
The total initial investment to open a Applebee's Neighborhood Grill & Bar franchise ranges from $1.8M to $5.8M (2025 FDD). This includes the franchise fee, equipment, build-out, inventory, and working capital needed before opening.
View full investment analysisThe initial franchise fee for Applebee's Neighborhood Grill & Bar is $35K (2025 FDD). This one-time fee is paid to the franchisor when signing the franchise agreement and covers the right to use the brand, systems, and initial training.
View full investment analysisData sourced from the Applebee's Neighborhood Grill & Bar 2025 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
No, Applebee's Neighborhood Grill & Bar does not require franchisees to have dedicated real estate (2025 FDD). This can significantly reduce startup costs and ongoing overhead.
View full investment analysisApplebee's Neighborhood Grill & Bar charges a royalty fee of 4.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.
View full fees analysisThe total ongoing fee rate for a Applebee's Neighborhood Grill & Bar franchise is approximately 8.3% of gross sales (2025 FDD). This includes the royalty fee, a 4.3% marketing/advertising fund contribution, a $2500/month technology fee, and other recurring charges.
View full fees analysisApplebee's Neighborhood Grill & Bar has been involved in 8 litigation cases over the past 3 years (2025 FDD). There are currently 5 pending cases. There are no class action lawsuits pending.
View full litigation analysisNo, the Applebee's Neighborhood Grill & Bar franchisor has no bankruptcy filings in their disclosure history (2025 FDD).
View full litigation analysisApplebee's Neighborhood Grill & Bar offers exclusive territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales are managed by the franchisor, not individual franchisees.
View full territory analysisApplebee's Neighborhood Grill & Bar currently operates 1,463 locations (2025 FDD) (1,463 franchised, 47 company-owned). The system contracted by 5.1% over the past year. The 3-year compound annual growth rate is -2.4%.
View full growth analysisThe 1-year franchisee turnover rate for Applebee's Neighborhood Grill & Bar is 5.6% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.
View full growth analysisAccording to the Applebee's Neighborhood Grill & Bar FDD Item 19 financial performance representation (2025 FDD), the median gross sales per unit is $2.6M (average: $2.8M).
View full financials analysisThe initial franchise agreement term for Applebee's Neighborhood Grill & Bar is 20 years (2025 FDD). Franchisees can renew 4 times for 5-year periods. The total potential term is 40 years.
View full contract analysisApplebee's Neighborhood Grill & Bar's post-termination non-compete clause restricts former franchisees from operating a competing business for 2 years within 5 miles of the former location (2025 FDD).
View full legal analysisNo, Applebee's Neighborhood Grill & Bar's franchise agreement does not require mandatory arbitration (2025 FDD). Disputes may be resolved through litigation. The agreement includes a jury trial waiver.
View full legal analysisApplebee's Neighborhood Grill & Bar provides 500 hours of initial training over approximately 10 weeks (2025 FDD). The cost of training is covered by the franchisor (travel and lodging are typically the franchisee's responsibility). Ongoing field support is provided on a annual basis.
View full support analysisYes, Applebee's Neighborhood Grill & Bar provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.
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