Applebee’s franchise financing options

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.

Estimated initial costs

Our cost estimates are accurate as of 2022 from Franchise Direct and include opening fees and expenses only. The location you choose for your Applebeeu2019s franchise 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.

Franchise	Cost
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.

Equipment	Cost
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.

Real estate	Cost
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.

Inventory	Cost
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.

Marketing	Cost
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.

Licenses and permits	Cost
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.

Admin	Cost
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.

Other	Cost
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 2022.

How to finance

Since the estimated total for Applebeeu2019s is on the more costly side, we recommend following these steps to get fully financed:

1. Go to the Applebeeu2019s franchising website and review its financial requirements, including cash-on-hand requirements.
2. Reach out to Applebeeu2019s about in-house financing for franchisees.
3. If in-house financing isn't available, look for online loans, bank loans and SBA loans to help meet the $5,020,728 estimated opening costs.
4. Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
5. Once you settle on a lender, gather all required documents, including account statements and assets.
6. Apply for financing online or in person as required by the lender.

What types of financing is available?

You have several options when it comes to financing a Applebeeu2019s — even if the cost is on the heavier side. What assets you have available will largely determine how much you need to borrow, and which option suits you best.

• Online loan. A number of online business lenders offer amounts up to $1 million, with some extending up to $5 million.
• Bank loan. Your personal credit will typically need to at least be good — 670 or higher — when it comes to getting a bank loan large enough to cover a significant portion of Applebeeu2019s opening costs.
• SBA loan. While your personal credit score doesn't need to be as good to qualify for an SBA loan, they usually cost more than standard term loans from banks or online lenders.

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

You may not need financing to cover the estimated $1,920,056. But if you need funds for other business ventures, select the loan amount, your time in business and revenue and your personal credit score to compare a selection of lenders.

How Applebeeu2019s stacks up

Compare how Applebeeu2019s holds up against two similarly sized franchises.

	Stratus Building Solutions Master	Applebeeu2019s	Dennyu2019s
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.