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Doherty Enterprises Inc. is trimming its portfolio of Applebee’s Neighborhood Grill + Bar restaurants.

In an April 22 announcement, the casual-dining brand announced that Flynn Group acquired 26 locations in Florida and Georgia previously owned and operated by the Allendale-based franchisee.

The press release did not specify which units Flynn purchased, but said employees at the impacted locations received job offers with the new ownership. Financial terms of the sale were not disclosed.

Media representatives from Applebee’s, Flynn and Doherty did not immediately respond to inquires from NJBIZ about the transaction.

In its press release, Applebee’s said the deal is part of an effort by the chain to return to net new openings. It also calls for Flynn to open 25 restaurants nationwide over the next seven years.

Meanwhile, long-standing franchisee Doherty will maintain ownership of 80 units in New Jersey and New York.

Regional growth

Earlier this year, Doherty expanded its Applebee’s holdings in the Northeast by acquiring 21 restaurants in the New York metropolitan area from Apple-Metro. 

At that time, chairman and CEO Ed Doherty called it a “pivotal moment” for the company. He said it “aligns with our strategic vision for growth and innovation in the restaurant franchise space.”

Doherty is considered one of the largest foodservice companies in the U.S. and among the largest privately held businesses in New Jersey. Its franchise family also includes Panera Bread and Chevys Fresh Mex. The family-owned business operates its own concepts, too: The Shannon Rose Irish Pub and Sputino Wine Bar & Italian Tapas.

The sale to Flynn comes more than a decade after Doherty purchased 38 Applebee’s units in Florida and Georgia from Duluth hospitality group Gator Apple LLC. At the time, then-president Ed Choe said the company had been “on the lookout for any potential acquisitions of our existing brands for some time.” He added that, following remodels, they expected a sales uptick.

‘A special brand’

As the largest operator of Applebee’s in the U.S., Flynn has over 450 locations across 23 states. Overall, the San Francisco-headquartered company’s portfolio includes 2,600 franchise business locations from six restaurant brands (Arby’s, Wendy’s, Taco Bell, Applebee’s, Panera Bread and Pizza Hut). It also features one gym business, Planet Fitness.

The group’s founder and chief executive officer, Greg Flynn, commented, “Applebee’s has always been a special brand for us, as it has been for millions of guests throughout the country.”

“We’re excited to continue growing and building with Applebee’s, as we have for the past two-and-a-half decades. There is untapped potential in markets across the U.S. and we look forward to continuing to do what we do best: serving great food and delivering great experiences to our neighbors,” he stated in the press release.

Applebee’s President Tony Moralejo added, “This agreement reinforces the confidence in the Applebee’s brand from our largest franchisee – and the largest franchise operator in the world.”

He went on to describe Flynn’s leadership team, culture and focus on operational excellence as “unparalleled.” He said the chain is “excited to expand our partnership with them and to bring Applebee’s to more neighborhoods across the U.S.”

Altogether, Applebee’s franchise operations consist of 1,642 restaurants globally. The 44-year-old brand also has 12 ghost kitchens, 10 of which are international.