If you`re considering owning a restaurant franchise, you may be wondering about the specific terms of the Applebee`s franchise agreement. As a professional, I`ll provide some insights into the key elements of this agreement and what you need to know.

Firstly, it`s important to understand that the term of an Applebee`s franchise agreement is typically 20 years, with an option to renew for an additional 10 years. This gives you a long-term commitment to the brand and the opportunity to build a profitable business over time.

Under the terms of the agreement, you`ll be required to pay certain fees to Applebee`s, including an initial franchise fee of $40,000 for a single unit. There are also ongoing royalties based on your restaurant`s gross sales, which are currently set at 4% per year. Additionally, you`ll need to contribute to a marketing fund, which is currently set at 3% of gross sales.

Applebee`s provides extensive support to its franchisees, including initial training and ongoing support through regular visits from field representatives and access to online resources and training tools. The company also offers national advertising campaigns and local marketing support to help you build your business.

In terms of location, Applebee`s requires its franchisees to open restaurants in areas with a population of at least 25,000 people, with a minimum of 50,000 people within a five-mile radius. This helps to ensure that there`s enough demand for your restaurant to be successful.

One important thing to note is that Applebee`s has a strict policy regarding the use of its trademarked name and logo. You`ll need to follow specific guidelines for how you use these elements in your marketing materials and signage. Failure to do so could result in termination of your franchise agreement.

Overall, the Applebee`s franchise agreement is designed to provide a strong framework for building a successful restaurant business. With its long-term commitment, extensive support, and clear guidelines, it`s a solid option for those looking to start a franchise in the restaurant industry.

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