IHOP Franchise Analysis
IHOP is a Franchise Grade Made The Grade™ franchise, which means it's ranked strongly by our research team.
Franchise Opportunity Information
Officially, the International House of Pancakes is better known as IHOP. It is breakfast focused full service family restaurant that has been in operation for almost 60 years. It is owned by DineEquity.
What are the requirements to buy a IHOP franchise?
IHOP has a franchise fee of up to $50,000, with a overall initial investment range of $1,150,066 to $6,037,673.
- Initial Franchise Fee: $50,000
- Total Investment: $1,150,066 to $6,037,673
- Working Capital: $26,500 to $145,250
- Royalty Fee: 4.5%
The upfront investment of any franchise opportunity includes many fees. Unlock this franchise opportunity to better understand the specific costs required to own a IHOP, such as territory fees, construction and costs, pre-opening marketing, and equipment purchases. It should be noted that, franchisors must to disclose all initial fees. These are not only fees that are actually paid, but also commitments to fees you are required to pay. Another important consideration to review is whether the upfront fees are refundable or not. The franchisor must disclose what conditions any of the upfront fees are refundable. A franchise must also disclose a range of fees if their initial fees are not uniform within the system. A careful review of the Item 5 initial fees will give you the answers needed to make a buying decision a IHOP.
Can you Afford an IHOP Franchise. Complete our Affordability Calculator to find out!
How much does a IHOP owner make?
As with any new franchised business, the franchisee's income and the earnings from a IHOP franchise depends on a variety of factors. One way to check on the potential revenues or profits earned from a IHOP franchise investment is to review the franchisor's Item 19 within their Franchise Disclosure Document. Typically, earnings and owner's salary are proportionate to the size of the investment and number of locations you own. Demand for your products, the labor costs, commercial lease rates and several other variables also play a large role in your bottom line and your personal income
For more details and franchise specific on the earnings of a IHOP franchise opportunity, unlock this franchise
How many franchise locations do they own?
As of the 2020 Franchise Disclosure Document, there are 1,696 franchised IHOP locations across the USA.
Did you know there are over 3,000 franchise opportunities across the United States. More than 80% have less than 10 locations.
Are there any IHOP franchise opportunities in my state?
Based on 2020 FDD analysis, IHOP has franchise locations in 104 states.
Based on the data collected this franchise opportunity is expanding into new locations and might be available near you. While planning your franchise purchase, you always need to be thinking about what is a good location for my business. Anlayze the potential customer base to assess that your city has a need or want for this brand. Even the most popular franchised businesses have cities that they do not succeed in. The reasons why a specific franchise location can fail are plentiful. So, you need to research not only the franchise opportunity itself, but review locations where you think the franchise has a greater chance to succeed.
One of our advisors will have detailed knowledge about this franchised business. Sign up to learn more and speak with our advisors.
Last Reviewed: 2020
Sector: Full-Service Restaurants
Category: Breakfast
IHOP Franchise INFORMATION
20 Years
10 Years
1,655
1,696
4.5%
3.5%
ADDITIONAL QUESTIONS
Do they provide any initial training and opening assistance?
Yes, they have an initial training program of 316 hours. This includes 42.50 hours of classroom training, 273.50 hours of on-the-job training, and 0 hours of online training. In their FDD they outline who's in charge of the training. Unlock to find out more.
| Online | 0 |
|---|---|
| On-the-Job | 273.50 |
| Classroom | 42.50 |
| Total | 316 |
Do they provide Territory Rights?
IHOP offers territory protections. For an explanation of territorial rights, unlock this franchise for important details.
Do they have computer and technology support in place?
No, IHOP does NOT offer comprehensive support for franchisees.
When did IHOP begin franchising?
They began franchising in 1958. The average Breakfast franchise began franchising in 1976.
Does IHOP offer financing support?
Yes. They offer certain financing options within Item 10 of their FDD.
Unlock this franchise for instant access to our research reports, including:
- Growth projections
- Turnover projections
- Financial transparency
- Initial and renewal terms
- Royalties and ongoing fees
- Key Franchise FAQs
- Our grade and free access to consult with a franchising expert
- How much do franchise owners historically earn?
- Does this brand provide Veteran or First Responder discounts?
- Does this brand use public figures to promote their franchise?
- Does this brand disclose any bankruptcies?
- Is this franchise related with any other franchise opportunities or private equity investment groups?
- How many new outlets have they opened in the last 5 years?
- How many franchised outlets have closed in the last 5 years?
- How many new outlets have they sold in the last 5 years?
- How many franchised outlets have terminated in the last 5 years?
- Does this brand operate any corporate or affiliate owned outlets?
- What is their initial and renewal term lengths?
- How does the franchisor avoid litigation and lawsuits?
- How long has the franchisor been in business?
- Are they expanding internationally?
- How are the royalty, advertising and marketing funds administered and managed by the franchisor?
- What are the territory protections the franchisor provides you?
- What support can you expect to receive from the franchisor?
- Why has new franchisee growth been so low?
- What are the critical requirements for operating a successful franchised location in this system?
- Are you required to work in the outlet or is this a passive investment opportunity?
- Will the franchisor refund the franchise fee under certain circumstances?