Apple American to buy 41 Applebee's restaurants
March 20, 2008
by FoodBusinessNews.net Staff
GLENDALE, CALIF. — Apple American Group L.L.C. has reached an agreement with IHOP Corp. to buy 41 company-operated Applebee’s restaurants in Southern California and Nevada.
"As Applebee’s largest franchisee, we are pleased to be the first partner to extend our relationship and commitment to the Applebee’s brand with the acquisition of these company-operated restaurants," said Gregory G. Flynn, Apple American’s founder. "While it enables Apple American Group to further leverage our infrastructure, it also affords us an opportunity to participate in the revitalization of the Applebee’s brand in a significant way. Applebee’s new ownership by IHOP Corp. and the approach leadership intends to take to re-energize the brand were integral in our decision to acquire additional restaurants."
The agreement also provides for future franchise restaurant development in those markets for as many as 14 new Applebee’s restaurants by the end of 2012. Financial terms of the deal were not revealed.
The plans are part of IHOP Corp.’s goal of selling about 100 company-operated Applebee’s restaurants and generating $90 to $100 million in proceeds in 2008.
"We are pleased to announce sale of our first company-operated markets in line with our strategy to transform Applebee’s into an even more highly franchised system," said Julia A. Stewart, IHOP Corp. chairman and chief executive officer. "This concludes a competitive bidding process for these markets with the selection of Apple American Group, which places these restaurants in the hands of an exceptional franchise operator and provides growth opportunities for the leading restaurant developer within the Applebee’s system."