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Below is an in-depth analysis and side-by-side comparison of Houlihan's vs Applebee's including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $1,600,000 - $4,300,000 | $2,009,038 - $8,267,250 |
Franchise Fee | $40,000 | $35,000 |
Royalty Fee | 4% | 4% initially, 5% possible after |
Advertising Fee | - | not less than 4% |
Year Founded | 1972 | 1980 |
Year Franchised | 1994 | 2014 |
Term Of Agreement | 20 years | - |
Term Of Agreement | 20 years | - |
Renewal Fee | $5K | - |
Business Experience Requirements |
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Experience | Our Ideal Franchise Partner -Is committed to a long term franchise relationship built on trust and respect -Knows how to build a brand -Understands that accessible pricing and value are core components of casual dining -Has prior hospitality experience or knowledge, particularly in critical areas like supply chain, quality assurance, real estate development, and marketing -Has or will have infrastructure dedicated to the development of our brand -Has material liquidity and net worth, with access to capital -Has a track record of developing multi-unit restaurant systems | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | -/- |
Start-up Costs | No/Yes | -/- |
Equipment | No/Yes | -/- |
Inventory | No/Yes | -/- |
Receivables | No/Yes | -/- |
Payroll | No/Yes | -/- |
Training & Support |
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Training | - | - |
Support | Meetings, Field operations/evaluations, Purchasing cooperatives | - |
Marketing | Co-op advertising, Ad slicks, Regional advertising | - |
Operations |
Franchisees required to buy multiple units/master licenses Number of employees needed to run franchised unit: 78 Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators) | - |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | No | Yes |
To help us more quickly expand to new markets and trade areas, Houlihan's is seeking sophisticated restaurant operators with experience building out entire markets. At this time, we are not pursuing single-site franchise agreements.
Our ideal candidate to become a franchise market developer is a successful full-service, multi-unit operator with expertise in one or more large markets (e.g. the top 75 MSAs in the United States). We are seeking entrepreneurial organizations that can thrive in our flexible franchise environment, while having access to growth capital and capital reserves, but experiencing growth constraints with their current restaurant concept(s).