Houlihan's vs Applebee's Franchise Comparison

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

 
Houlihan's Franchise
Applebee's Franchise
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 19721980
Year Franchised 19942014
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee $5K-


Business Experience Requirements

 
Houlihan's Franchise
Applebee's Franchise
Experience
  • Industry experience
  • General business experience
  • Must live in same market being developed
  • 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

     
    Houlihan's Franchise
    Applebee's Franchise
      In-House/3rd PartyIn-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

     
    Houlihan's Franchise
    Applebee's Franchise
    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

     
    Houlihan's Franchise
    Applebee's Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion NoYes

    Company Overviews

    About Houlihan's

    Houlihan's has been known for exceptional food at an affordable price since we entered the casual dining segment in 1972. Our menu features a great mix of contemporary pop American cooking - classic dishes reinvented in a fresh modern way and brought to the table with simple, stylish plating and presentations. And then there's the bar. It's always the best place to feel the great energy of Houlihan's. Our bar strategy unites pop culture, trendy premium brands, the newest drinks and vendor insights for a winning combination, resulting in an enviable liquor mix.

    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).

    About Applebee's

    Applebee's is the largest casual dining chain in the world with sales of $4.7 billion in 2006. Already the business staple of friendly casual dining, Applebee's is pursuing expansion opportunities, and is looking for individuals/firms with a serious interest in developing our successful brand internationally. For years Applebee's has embraced neighborhood culture, providing high-quality food and drinks in a friendly and informal atmosphere. Compared to the competition, Applebee's consistently delivers food to the consumer faster as well as more affordably. We plan to take this same mantra abroad, creating a warm, inviting dining experience designed around location-specific demographics and customer preference information.

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