IHOP Non-Traditional Franchise Analysis

Franchise Info

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.

How much does an IHOP Non-Traditional business cost to open?

IHOP Non-Traditional has an initial franchise fee of up to $50,000, with a overall upfront investment range from $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 initial purchase price of any franchised business includes several fees. Check out this franchise opportunity to better understand the specific costs required to buy an IHOP Non-Traditional, such as franchise fees, real estate costs, pre-opening advertising, and equipment purchases. It should be noted that, franchisors are required to provide you with details about all initial fees. These fees include those that are actually paid when signing the franchise agreement and commitments to fees you are required to pay. Another important consideration to review is whether the initial fees are refundable or not. The franchise system is required to disclose what conditions any of the initial fees are refundable. A franchise must also provide details of a range of fees if their initial fees are not uniform within the franchise. A thorough review of the Item 5 initial fees will give you the answers needed to make an informed investment decision this franchise.

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How much does an IHOP Non-Traditional franchise owner make?

As with any new investment opportunity, there needs to be a solid ROI and net profit potential. The specific franchisee's income and the revenue from an IHOP Non-Traditional business depends on a lot of different factors. One way to confirm the potential revenues or profits generated from a IHOP Non-Traditional franchise investment is to review the franchisor's Item 19 within their FDD. This is called an earnings claim. This is not required within a franchisor's disclosure and approximately 68% of all franchisors that we research and study will disclose financial performance data within Item 19 of their FDD. Some franchisors may provide limited information such as average gross revenues. This type of financial data is not always helpful to assess profitability for you directly. So review systemwide sales data with caution. As expected, typically earnings and owner's income are correspond to the overall size of the initial investment. The larger the initial investment, the larger return you could anticipate. Another factor to owner's salary potential is based on the number of locations you purchase. If you buy multiple units (typically referred to as Area Development Agreements), you can anticipate that as you open the next unit, you will earn a multiple on your profits. Demand for your products, your labor costs in your city, commercial lease rates and a number of other variables are important factors in determining your profit margin and your take-home income. Your future returns are associated with the overall franchisor's success. Your returns and owner's income is not just reliant on how well your own location operates, you should review how well the entire franchise system is performing. Determine how the franchise company makes money and analyze their financial returns.

For more details and system-specific data on the revenue of an IHOP Non-Traditional franchised business, unlock this franchise opportunity

How many franchise locations does IHOP Non-Traditional franchise system have?

As of the 2020 Franchise Disclosure Document, there are 23 franchised IHOP Non-Traditional locations in the United States.

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 Non-Traditional franchise opportunities in my area?

Based on 2020 FDD data, IHOP Non-Traditional has franchise locations in 15 states. There may be zero outlets in several states as each franchise plans their growth strategy differently. Certain states also require franchisors to register their franchise opportunity and file their Franchise Disclosure Document (FDD) with state examiners prior to selling franchise opportunities to people living in that state. These registration states have examiners review a franchise company's FDD to confirm it satisfies state regulatory conditions. In addition to registration states, some other states have enacted supplemental franchise or business opportunity laws that require franchisors to provide their franchise within the state. In almost all instances the filing is simply a notice with the state. Unlike franchise registration states, the franchise filing states do not review a franchisor's FDD.

Based on the data collected this franchise is growing into new markets and might be available in your city.

One of our franchise experts will have detailed knowledge about this franchise. Unlock to learn more and talk with our advisors.

Last Reviewed: 2020