Applebee's

Current Terms of Development

• Territory Development Fee: A fee for the exclusive rights to develop Applebee's restaurants within a certain territory during the term of your Development Agreement. It is a non-refundable amount due at the time of signing the Development Agreement.
• Franchise Fee: A $40,000 fee per restaurant.
• Royalty: 4% of Gross Sales for the first 24 months after the opening of the restaurant. After the first 24 months, we have the right to increase the results to 5% of Gross Sales.
• Advertising Fee: The Franchisee is required to spend not less than 3.5% of Gross Sales on local marketing, advertising, public relations, etc. An additional fee of 0.5% of Gross Sales is paid to Applebee's for a marketing fund that is used in part on creative development.

Additional Requirements

Applebee's development agreements generally require a franchisee to build and operate a minimum number of restaurants in a particular geographic area within a period of three to seven years. This requires prospective franchisees to have a substantial net worth and cash availability position. We generally require a minimum US$1,000,000 net worth for each restaurant scheduled under our multi-unit development agreement with additional minimum requirements for liquid/cash assets. We also prefer that our franchisees have someone on their team with multi-unit foodservice or retail experience.