Overall costs for Applebeeu2019s run anywhere from $1,920,056 to $8,121,400. See how the costs break down and what funding options might be right for your new venture into the franchise foray.
How COVID-19 affects franchising costs
Strict sanitation and employee protection measures during the coronavirus outbreak add to the typical costs you face when opening a new franchise. Paired with the unusually heavy amount of promotions that may be required by the franchise, you may not see as much in the way of profits starting out. For more information on what support is out there, read our guide to
loans for businesses affected by the coronavirus.
Estimated initial costs
Our cost estimates are accurate as of 2019 from
https://www.franchisedirect.com and include opening fees and expenses only. Your location may result in higher or lower fees.
Franchise fees
Applebeeu2019s franchise fees total around $47,500, which is more than the $37,000 average for the 200 largest franchises.
| Applicant fee |
$0 to $15,000 |
| Franchise fee deposit |
$0 to $10,000 |
| Initial franchise fee, depending on deposit |
$35,000 to $35,000 |
| Royalty |
Currently, 4% of gross sales. |
| Estimated total |
$35,000 to $60,000 |
Equipment fees
Equipment fees total $642,500 for Applebeeu2019s. This costs more than the $180,023 average for the top 200 franchises.
| Furniture, fixtures, equipment and signage |
$410,000 to $750,000 |
| Point-of-sale system |
$20,000 to $45,000 |
| Smallwares, including dishes, silverware and other utensils |
$25,000 to $35,000 |
| Estimated total |
$455,000 to $830,000 |
Real estate fees
Real estate will set you back $3,003,000 for Applebeeu2019s, which is more expensive than the average of $788,376 for the top 200 franchises.
| Purchase of land |
$300,000 to $2,000,000 |
| Building costs, including purchase, construction and remodeling |
$556,000 to $2,600,000 |
| Site work |
$50,000 to $500,000 |
| Estimated total |
$906,000 to $5,100,000 |
Inventory costs
Initial inventory for Applebeeu2019s shakes out to $36,400. This is less than the nationwide average of $53,119.
| Initial inventory |
$25,500 to $47,300 |
| Estimated total |
$25,500 to $47,300 |
Marketing costs
Advertisement and marketing costs total up to $22,500 for Applebeeu2019s, which is more than the nationwide average of $9,938.
| Initial advertising expense |
$5,000 to $40,000 |
| Local advertising |
There is currently no required local advertising fee. |
| Estimated total |
$5,000 to $40,000 |
Licenses and permits costs
Applebeeu2019s initial licenses and permits will set you back $538,500. This comes out to more than $18,770 — the overall nationwide average.
| Permits and fees |
$1,500 to $75,000 |
| Liquor license |
$500 to $1,000,000 |
| Estimated total |
$2,000 to $1,075,000 |
Administrative fees
Applebeeu2019s administrative fees total up to $2,278 — which comes in under the overall nationwide average of $6,761.
| Online ordering |
$56 per month to |
| Europay, Mastercard, and Visa point-to-point encryption services |
$1,500 to $3,000 |
| Estimated total |
$1,556 to $3,000 |
Other expenses
Miscellaneous expenses for Applebeeu2019s total $728,050 — more than the nationwide average of $69,970.
| Professional services |
$30,000 to $211,000 |
| Pre-opening expenses, including insurance, legal, accounting, personnel and training expenses |
$55,000 to $100,000 |
| Apple supply chain co-op stock purchase |
$0 to $100 |
| Three months' additional funds |
$405,000 to $655,000 |
| Estimated total |
$490,000 to $966,100 |
All costs were found using the 200 largest franchises nationwide using Franchise Direct's list of more than 300 franchises, and are accurate as of 2019.
How to finance
The best way to finance Applebeeu2019s comes down to your personal financial situation. What assets you have available will largely determine how much you need to borrow, and which option suits you best. Potential solutions include:
- Bank loan. Your personal credit plays a large role in getting a business term loan from a bank. Typically this type of funding is for larger amounts.
- Online loan. Credit requirements may be more flexible for an online loan than a bank loan, but amounts may max out at a lower amount — typically around $1 million.
- SBA loan. The good part about SBA loans is that they top out at $5 million, but your business has to meet a number of requirements.
- Credit card. Small costs that aren't fixed, such as stray inventory and supply purchases, may be better off on a business credit card. Just make sure you can pay it off quickly to avoid high APRs.
Also check if Applebeeu2019s franchise financing is available. You may be able to get some of the costs covered for less than you would with other traditional funding options.
Compare small business lenders
How Applebeeu2019s stacks up
Compare how Applebeeu2019s holds up against two similarly sized franchises.
| Average Franchise fees |
NA |
$47,500 |
$20,000 |
| Average Equipment fees |
$3,175 |
$642,500 |
$485,497 |
| Average Real estate fees |
$11,125 |
$3,003,000 |
$772,500 |
| Average Training fees |
$4,500 |
NA |
$18,000 |
| Average Inventory fees |
$750 |
$36,400 |
$22,616 |
| Average Marketing fees |
NA |
$22,500 |
$4,000 |
| Average Licenses and permits fees |
NA |
$538,500 |
$27,500 |
| Average Insurance fees |
$2,250 |
NA |
NA |
| Average Admin fees |
NA |
$2,278 |
NA |
| Average Personnel fees |
NA |
NA |
NA |
| Average Other fees |
$62,500 |
$728,050 |
NA |
Bottom line
Applebeeu2019s franchise costs run a total of $5,020,728. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing
read our guide to franchise financing.
