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Applebee’s costs and fees

The average cost to open one of the 200 biggest franchises in the US is $1,202,874 — see how Applebee's compares.

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Fact checked
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.
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 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

Data indicated here is updated regularly
Name Product Filter Values Min. Amount Max. Amount Requirements
Lendio business loans
$500
$5,000,000
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
Fora Financial business loans
$5,000
$500,000
1+ year in business, $250,000+ annual revenue, no open bankruptcies
Get qualified for funding in minutes for up to $500,000 without affecting your credit score. Great for SBA loan applicants.
First Down Funding business loans
$5,000
$300,000
At least 2 years in business, an annual revenue of $300,000+, and a minimum credit score of 400
Alternative financing up to $300K with highly competitive rates.
ROK Financial business loans
$10,000
$5,000,000
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.
OnDeck small business loans
$5,000
$250,000
600+ personal credit score, 1 year in business, $100,000+ annual revenue
A leading online business lender offering flexible financing at competitive fixed rates.
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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.

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