A large Applebee’s franchisee has filed for bankruptcy, and the franchisor is in line to acquire the business.
Atlanta-based Neighborhood Restaurant Partners (NRP) filed for Chapter 11 bankruptcy Tuesday in Georgia’s Northern District Bankruptcy Court. It reported $1 million to $10 million in assets compared to $10 million to $50 million in liabilities, including more than $13 million owed to lender Equity Bank.
NRP currently operates 53 Applebee’s in Alabama, Florida and Georgia. According to the filing, it acquired the restaurants in 2012 and, after a period of growth, business has been up and down since 2015. It has become more dire recently amid rising inflation and a slowdown in consumer spending.
The company lost money in 2025 and closed nine restaurants as it looked to stem the bleeding. It also hired Citizens Bank to run a sale process for its assets, leases and franchise agreement last year. After four or five months, the company was unable to find a buyer, and had to close another five locations earlier this year.
However, in February, it reached a tentative agreement with Applebee’s parent Dine Brands that would see the franchisor take control of the business.
NRP’s worsening financial situation forced it to file for bankruptcy before the two sides could get a deal done, but Applebee’s will act as the stalking-horse bidder in the case and is expected to complete the acquisition by mid-May.
In a statement, Dine CEO and Applebee’s President John Peyton said that while individual franchisees may face challenges from time to time, the Applebee’s brand remains strong overall.
“Serving as the stalking horse bidder gives us the opportunity to be strategic and selective in supporting the long-term health of the system and this portfolio of restaurants has historically had solid performance,” he said.
The move aligns with Applebee’s desire to run more of its own restaurants after being 100% franchisee-operated for years. Last year, the company acquired 47 locations from franchisees with plans to renovate them and improve their performance before refranchising them in a few years.
That move came amid a two-year streak of negative same-store sales for the 1,600-unit casual-dining brand. But results have improved more recently, including a 1.3% year-over-year same-store sales increase in 2025.
The chain has hit on an appealing value deal with its 2 for $25 meal combo and has also worked to improve its operations and marketing.
At least two other Applebee’s franchisees, Louisiana Apple and Apple Central KC, have filed for bankruptcy in recent years. They accounted for a total of 22 locations.
They are among dozens of restaurant companies to seek bankruptcy protection over the past few years amid a brutal operating environment.
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