Date Incorporation: 1987
Franchising Since: 2007
Headquarters: Kansas
Description: The franchisee will operate sit-down, table service restaurants, including the service of food and alcoholic beverages, under the trade name of Applebee's Neighborhood Grill & Bar.
Franchise Offer: Each franchise arrangement consists of 2 parts: a development agreement which requires the franchisee to open and operate at least 1 restaurant pursuant to an initial development schedule and during the remaining term of the development agreement, and allows the franchisee to open and operate more restaurants in the territory if needed; and separate franchise agreements between the franchisee and the franchisor for the operation of each restaurant.
Financial Assistance: The franchisor does not offer any financing to the franchisee nor do they guarantee any note, lease or obligation.
Training and Assistance: The field training program for management includes in-store, performance-based, task-oriented training. This training will take approximately 12 weeks (a work week of 5 to 6 days). A basic restaurant management and operations program for the directors of operations, other persons with development or supervisory responsibility over more than 1 restaurant, general managers, kitchen managers and other restaurant managers is provided by the franchisor at one of his restaurants or that of a franchisee. Before the opening of the restaurant and for approximately 1 week after the restaurant opens, the franchisor provides a basic training program for the non-management restaurant employees.
Territory: The franchisee is granted exclusive right to develop one or more restaurants within a specified territory during one or more initial development periods.
Term of Agreement and Renewal: The franchise agreement has a 20-year term. It is possible to renew up to 4 times for 5 years each, if the franchisee is in good standing. At renewal, a fee equal to 10% of the franchisee fee must be paid.
Obligations and Restrictions: The franchisor does not require the franchisee to supervise personally the franchised restaurants. The franchisee must employ a director of operations to devote their full-time efforts to the franchisee's restaurants. Under each franchise agreement, the franchisee must employ a general manager who will devote their full-time efforts to supervising the day-to-day operation of each restaurant and a kitchen manager who will devote their full-time efforts to supervising the day-to-day operation of the restaurant kitchen. The franchisee may offer for sale in the restaurants only those products and services specified in the franchise agreement. Unless the franchisor specifically consents in writing, the franchisee must offer all the products and services specified in the preceding sentence.
Total Number of Units: 1875 units by year end 2008
Total Number of franchises Units: 1470 franchised units by year end 2008
