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 2021 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.
| 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 2021.
How to finance
Since the estimated total for Applebeeu2019s is on the more costly side, we recommend following these steps to get fully financed:
- Go to the Applebeeu2019s franchising website and review its financial requirements, including cash-on-hand requirements.
- Reach out to Applebeeu2019s about in-house financing for franchisees.
- 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.
- Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
- Once you settle on a lender, gather all required documents, including account statements and assets.
- 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.
| 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.
