DineEquity Inc. on Friday said that in order to reduce debt it will sell 63 company-operated Applebee’s restaurants to its largest franchisee for $32 million.

The Glendale operator of the Applebee’s and IHOP chains said the restaurants being sold to Apple American Group LLC are in Minnesota and Wisconsin. Apple American, based in Independence, Ohio, now owns and operates 206 Applebee’s restaurants in California and eight other states.

“This transaction furthers our strategic objective of transitioning Applebee’s into a more highly franchised restaurant system over time,” Chief Executive Julia Stewart said in a statement.

DineEquity, which operates more than 3,450 Applebee’s and IHOP restaurants, plans to use $28 million from proceeds of the sale to reduce debt. In addition, removing leases related to the properties will lower debt by $77 million.

Shares closed up $1.43, or 4 percent, to $37.61 on the New York Stock Exchange.