Applebee’s franchisee Neighborhood Restaurant Partners (NRP) declared bankruptcy on Tuesday.
The operator oversees 53 locations across Florida, Georgia, and Alabama. It reported $1 million to $10 million in assets and $10 million to $50 million in liabilities.
Dine Brands plans to serve as a stalking horse bidder, giving it a front-running position to acquire the restaurants.
The organization was formed in 2012 after collectively purchasing 65 locations from existing Applebee’s franchisees. According to court documents, NRP experienced solid growth in its early years, with EBITDA expanding from $13 million in 2013 to over $20 million in 2015. However, toward the end of 2015, sales softened and the company went through a period of ups and downs. During this time, NRP navigated unsuccessful promotions, COVID, and a highly inflationary environment. The company’s EBITDA was negative in the past year.
NRP was forced to shutter nine restaurants in 2025. Inflation continues to increase operating expenses while also impacting customers’ ability to visit restaurants, resulting in higher costs and lower sales and traffic.
Because of financial turmoil, NRP decided to sell its assets early last year. Over four to five months, the group found 17 parties showing some curiosity, but none wanted to move forward. Feedback from potential buyers suggested NRP needed to close more underperforming restaurants to attract more interest. In response, the company closed five more units in Q1.
In February, NRP reached an agreement with Applebee’s parent Dine Brands to acquire all 53 restaurants. The franchisee hoped for an out-of-court transaction, but the two sides couldn’t finalize an arrangement. Continued cash flow issues pushed NRP to declare bankruptcy and pursue the sale under court supervision.
“Applebee’s has indicated that it will support the Debtors in this process, and it is expected that Applebee’s and the Debtors will in the near future reach agreement on a stalking horse asset purchase agreement which will serve as the basis of a sale process,” chief restructuring officer Katie Goodman stated in court documents.
NRP wants to complete the sales process by mid-May.
Last year, Applebee’s—previously 100 percent franchised—bought 47 restaurants. The goal was to remodel 30 of them under its reimaging program and convert five into the new Applebee’s/IHOP co-branded prototype. Afterward, Applebee’s will refranchise the locations.
Applebee’s same-store sales lifted 1.3 percent in 2025 after dropping 4.2 percent in 2024. In the fourth quarter, comps slid 0.4 percent. The chain’s 2 for $25 platform represented 22 percent of transactions, helping average check growth and fulfilling off-premises demand.
