A national casual dining brand at accessible prices, mostly backed by franchisees, and how to pick a strong operator and store, from a NNN buyer’s broker with 225+ transactions.
An Applebee’s NNN property is a freestanding casual dining restaurant, often about 5,000 square feet, leased on a NNN lease. Applebee’s is owned by Dine Brands Global (NYSE: DIN), also the parent of IHOP, based in Pasadena, California. More than 90% of Applebee’s restaurants are run by franchisees, so the lease is usually backed by the operator, not Dine Brands.
Sales have been soft. U.S. same-store sales were down 1.8% in Q2 2026, and more restaurants closed than opened that quarter. That makes the operator and the individual store the heart of any Applebee’s purchase on a 1031 exchange. Solid Investments FL has represented buyers on Applebee’s deals in Orlando and Kissimmee, Florida. See them in our track record. Our buyer representation is always free to you.
| Tenant | Usually a franchisee operating company; company-operated leases are less common. Confirm the tenant and every guarantor |
|---|---|
| Parent company | Dine Brands Global (NYSE: DIN), Pasadena, California |
| Credit | Franchisee credit varies by operator; franchisees are typically not rated |
| Restaurants | About 1,500 (June 2026), more than 90% franchised |
| Franchisee concentration | The top ten franchisees own about 82% of U.S. franchised restaurants |
| Recent U.S. performance | Same-store sales down 1.8% in Q2 2026 |
| Building size | Often about 5,000 SF |
| Lease type | NNN; fee-simple and ground-lease deals both trade. Terms vary by lease |
| Typical cap rate (2026) | About 6.5%–7.75%, depending on the operator, the store and the remaining term |
| Typical price range | About $2M–$4M |
Restaurant counts and sales from Dine Brands reports as of 2026. Cap rates and pricing reflect current market conditions and vary by deal.
Most Applebee’s leases are guaranteed by a franchisee, not Dine Brands. Read exactly who signs the lease and who guarantees it.
Check how many units back the guarantee. Franchisees often hold restaurants in separate subsidiaries, so a large operator’s lease may be guaranteed by an entity with only a few stores.
With U.S. sales down and some closures, make sure your store is a keeper. Rent at 6%–8% of sales is healthy, below 6% is very strong, and around 10% is close to break-even.
Many Applebee’s on the market have shorter remaining terms. Check the expiration date, the renewal options and the next rent increase.
Compare the rent per square foot to what similar restaurants lease for nearby. Rent at or below market makes the building easier to re-lease.
A 5,000-SF restaurant with good parking, visibility and access can appeal to many other casual dining and retail users if the store ever closes.
We’ve represented buyers on Applebee’s deals in Orlando and Kissimmee, Florida:
Casual Dining
Casual Dining
Solid Investments FL is a Florida NNN buyer's brokerage headquartered in Lakewood Ranch (Sarasota), serving investors across Florida and nationwide, with 225+ NNN transactions, including Applebee's deals in Orlando and Kissimmee, Florida. We help investors and 1031 exchange buyers find, underwrite and close Applebee's and other restaurant properties nationwide, and our buyer representation is free.
As of 2026, Applebee's NNN properties generally trade around 6.5% to 7.75% cap rates. Strong operators, good stores and longer remaining terms trade at the lower end, while smaller operators and shorter terms trade higher.
Then you own the land and the tenant owns the building. The main drawback is that you can't depreciate the building. The upsides: the tenant paid to build the store, so it has a strong vested interest in staying; ground rents are typically at or below market; and in most ground leases the building reverts to the landowner when the tenant vacates or the lease ends (verify it in your lease). That's why ground leases usually trade at lower cap rates.
Usually franchisee. More than 90% of Applebee's restaurants are franchised, so the lease is usually guaranteed by the operator's company. Always confirm exactly who signs and how many units back the guarantee.
Applebee's is owned by Dine Brands Global (NYSE: DIN), which also owns IHOP. Because most leases are backed by franchisees, the operator's size, financials and track record matter most. Franchisee operators are typically not rated.
Sales have been soft. Applebee's U.S. same-store sales fell 1.8% in Q2 2026, and more restaurants closed than opened that quarter. Store-level sales and the operator's strength matter.
Start with how many restaurants actually back the guarantee, since franchisees often hold stores in separate subsidiaries. Next, compare rent to store sales: rent at 6% to 8% of sales is healthy, below 6% is very strong, and around 10% is close to break-even for many operators. Finally, check rent per square foot against the local market and the remaining lease term.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
We’ll help you find a strong operator and read the lease. Tell us your budget and timeline; our buyer representation is completely free.
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