The franchisor is Applebee's Franchisor LLC, which is a subsidiary of Dine Brands Global, Inc. (former DineEquity, Inc.). The franchise offered is “Applebee’s Neighborhood Grill & Bar” a traditional restaurant that serves food and alcoholic beverages.
For Directors of Operations and managing employees like General Managers, Kitchen Managers, Assistant Managers the franchisor offers a basic restaurant management and operations program. Training held at a franchisee’s restaurant. Actual in-store training for management is a performance-based, task-oriented program.
The following functions are covered in training: server, host, bartender, Applebee’s To Go, cooks (fry cook, mid-cook, grill cook, prep cook), expo, general utility, dining room management, kitchen management and administration. Depending on the position and performance of the trainee, restaurant training is about 10-12 workweeks.
For new franchisees with no restaurant experience, the franchisor will provide up to 8 training personnel for approximately eight days before and six days after the restaurant opening. They will train restaurant employees in the operation of the kitchen, bar, dining room areas.
The franchisor may provide additional courses about the restaurant operation. The franchisor may request the director of operations, supervisory employees, general managers, kitchen managers, assistant managers to attend and complete these courses.
Territory Granted: Franchisees may operate their restaurant only at the specific location described in the Franchise Agreement. Operating location must be approved in advance by the franchisor. The franchisor does not grant any exclusive territory. Other franchisees, outlets owned by the franchisor, or from other channels of distribution or competitive brands controlled by the franchisor may compete with franchisees.
Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls.
Obligations and Restrictions: It is not required by the franchisor that the restaurant must be personally supervised by the franchisees. Franchisees must employ a Director of Operations or its equivalent. The Director of Operations must devote the best efforts and full-time to restaurant on-premise.
If the franchisor approves, one of the Principal Shareholders can be the Director of Operations. In this case, that person must have sufficient restaurant experience for that position. It is required that franchisees also must employ a General Manager and a Kitchen Manager. General Manager’s full-time job must be devoted to supervising daily operations.
The kitchen Manager’s full-time job must be devoted to supervising daily operations in the restaurant kitchen. Before the opening, each restaurant The General Manager, Kitchen Manager, Assistant Managers must complete the operations training course and other additional courses required by the franchisor. If a franchisee hires new managers they also must complete these training courses.
Only goods and services specified in the Franchise Agreement and the manuals are allowed to sell in the franchisees' restaurants. These products and services must be bought from suppliers and distributors approved by the franchisor and satisfy his standards and specifications. The facility can be used only as the restaurant complying with the franchisor’s requirements. Local advertisement must be approved by the franchisor.
Term of Agreement and Renewal: The minimal duration of the initial term is one year, maximum - 20 years. For now, there are no renewal possibilities.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.
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