Applebee's Neighborhood Grill & Bar Franchise
Cost, fees, owner earnings, closure rate and litigation for a Applebee's Neighborhood Grill & Bar franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Applebee's Neighborhood Grill & Bar discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
Disclosed historical gross sales for 1,351 traditional franchised restaurants by region for 12-month period ending 12/28/2025. Ranges $1.05M-$10.15M. No earnings/profitability data disclosed.
What a Applebee's Neighborhood Grill & Bar franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $35,000 | Item 5 — paid up front, before you open |
| Royalty | 4% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 4.25% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8.25% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $616,682 – $5,822,933 | Item 7 — franchisor's own low/high estimate |
Royalty 4%; advertising 4.25% (decreasing to 3.25% 1/1/27); local ads 0.5% from 1/1/27; POS $850-$5K annually; technology fees $300-$3,750+ monthly.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Applebee's Neighborhood Grill & Bar system size and owner turnover
| Total outlets | 1,480 |
| Ceased operations | 33 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 23 |
| Closure rate | 2.2% of outlets |
186 net closures 2023-2025; 33 ceased operations FY2025; significant recent transfers suggest ownership challenges.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Applebee's Neighborhood Grill & Bar worth it? — how it compares to 164 similar franchises
| Ongoing fees | 8.25% of sales | steeper than 61% of quick service restaurants franchises |
| Startup cost | from $616,682 | pricier than 62% of peers |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 2.2% of outlets | about average |
| Disclosed lawsuits | 8 | more litigious than 92% of peers |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Applebee's Neighborhood Grill & Bar
The franchisor's framing: Disclosed historical gross sales for 1,351 traditional franchised restaurants by region fo… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Applebee's Neighborhood Grill & Bar franchise — frequently asked
- How much does a Applebee's Neighborhood Grill & Bar franchise cost?
- The FDD lists a total initial investment of about $616,682–$5,822,933, including a $35,000 initial franchise fee.
- How much do Applebee's Neighborhood Grill & Bar franchise owners make?
- Disclosed historical gross sales for 1,351 traditional franchised restaurants by region for 12-month period ending 12/28/2025. Ranges $1.05M-$10.15M. No earnings/profitability data disclosed. We grade this disclosure C for honesty.
- What are the Applebee's Neighborhood Grill & Bar franchise fees?
- Applebee's Neighborhood Grill & Bar's FDD discloses a $35,000 initial franchise fee, a 4% royalty on gross sales, a 4.25% advertising-fund contribution, for roughly 8.25% of gross sales in recurring fees before rent, labor, or debt service. Royalty 4%; advertising 4.25% (decreasing to 3.25% 1/1/27); local ads 0.5% from 1/1/27; POS $850-$5K annually; technology fees $300-$3,750+ monthly.
- What is the Applebee's Neighborhood Grill & Bar franchise profit margin?
- Applebee's Neighborhood Grill & Bar does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Disclosed historical gross sales for 1,351 traditional franchised restaurants by region for 12-month period ending 12/28/2025. Ranges $1.05M-$10.15M. No earnings/profitability data disclosed. Recurring fees alone take about 8.25% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Applebee's Neighborhood Grill & Bar franchise failure rate?
- 186 net closures 2023-2025; 33 ceased operations FY2025; significant recent transfers suggest ownership challenges.
- How many Applebee's Neighborhood Grill & Bar locations are there?
- Applebee's Neighborhood Grill & Bar's FDD reports 1,480 total outlets, with 33 that ceased operations in the most recent reporting year and 23 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Applebee's Neighborhood Grill & Bar have complaints or lawsuits?
- Applebee's Neighborhood Grill & Bar discloses 8 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Applebee's Neighborhood Grill & Bar franchise worth it?
- It depends on the numbers, not the pitch. Applebee's Neighborhood Grill & Bar scores C on disclosure honesty, carries about 8.25% of sales in ongoing fees, and discloses 8 legal matters. Get the real owner take-home before you sign.
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Applebee's Neighborhood Grill & Bar or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.