DineEquity Inc. said Friday it has agreed to sell 63 corporate Applebee’s restaurants in Minnesota and Wisconsin to the chain’s largest franchisee, Apple American LLC, for $32 million.
The deal, which does not contain a financing contingency and is subject to regulatory approval, is expected to close in the fourth quarter, Glendale, Calif.-based DineEquity said. The transaction will allow the company, which operates and franchises both Applebee’s and IHOP, to reduce securitized debt by $28 million, it said. The removal of leases and related obligations also will provide DineEquity with a benefit of $77 million.
After the sale is completed, the number of corporate Applebee’s will be reduced to 334 within the 2,001-unit chain. Combined with the 1,455-unit IHOP chain, which includes about 12 company-operated stores, DineEquity’s 3,456-unit system will be 90 percent franchise operated.
“We are pleased to have reached an agreement to sell our Minnesota and Wisconsin restaurants to our largest Applebee’s franchisee and one of our best operators, Apple American Group,” said Julia Stewart, DineEquity’s chair and chief executive. “Apple American is a valuable franchise partner who continues to support our menu, marketing and operations revitalization efforts currently underway and is committed to reinvesting in the brand through new restaurant development, acquisition and restaurant remodel programs.”
San Francisco-based Apple American owns and operates 206 Applebee’s Neighborhood Grill & Bar locations.
“This expansion of our commitment to Applebee’s demonstrates the long-term confidence we have in the brand,” Gregory G. Flynn, Apple American’s founder, chairman and chief executive officer, said. “Over the past three years, Applebee’s has become an even more competitive and relevant player in the grill-and-bar category, and we are excited for what the future holds. Apple American intends to help further drive and solidify Applebee's leadership position in casual dining.”
Since DineEquity acquired Applebee’s in November 2007, 110 locations have been refranchised, not including the 63 announced Friday.
Contact Lisa Jennings at ljenning@nrn.com.
Comments
Post a CommentJulia Stewart and Apple American Group
Dear Julie Stewart:
It may be advantageous to look closer at Apple American Group and here is why:
Sometimes poor performance may exist due to underlying consumer attitudes verse the Brand itself
Most Corporations understand importance of damage control, I'm going to call this " a few bad Apples maybe ruining the bunch "
The parent company Dine Equity allows franchise rights to company's like Apple American Group.
What if Apple American Group VP of Real Estate Pat Eulberg indirectly or directly harmed sub-contractor(s) during the re-branding of Appplebee's ? Apple American Group stores ? Are they truly a valuable franchise partner ? after all Applebee's itself has a great product
Let's say the target market which frequents or use to frequent Applebee's stopped dining at Applebee's because of existing underlying issues of harm caused to the familys who work as sub-contractors
I know of one sub who handled the Signage re-brands who has yet to be paid from Apple American Group for over 1 year now. It's fact Apple American Group placed an unlicnsed GC representative by the name " Monton Holbrooks " to oversee re-branding in States which Monton Holbrooks was not licensed thus as the story goes, does one not understand the damage word of mouth creates when hard working familys, business(s) go unpaid, must chase payment and eventual file suit to be paid from Applebee Apple American Group ?
The old adage rings true " bad news travels faster then good " maybe Dine Equity may want to reign in the ill will which continues to fester on account of a frachisee harming a great Brand
The issue maybe those who were certified mailed of the problem including Ms Stewart, however, it was sent back to Apple American Group to handle and Pat Eulberg where the problem has only and continues to grow worse each and every day
How great is your greatest franchisee, sometimes due diligence in regards to a problems inital complaint may want to be checked upon as to its outcome or lack of outcome ?
Personally, I miss the Applebee product and service. Its not about the great Brand its about the few bad Apples which ruin it.