Casual dining restaurant chain known for its diverse menu, serving breakfast favorites and a range of American dishes for all-day dining.
KEY FRANCHISE STATS
Franchisees
?
1655
+
1%
1%
Franchise fee
?
$50,000
Investment
?
$1,752,000 - $5,223,000
Revenue (AUV)
?
Undisclosed
$1,953,000
+
-0.2%
-0.2%
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The International House of Pancakes, widely recognized asIHOP,is a prominent American brand offering an extensive range of breakfast, lunch, and dinner items since 1958. Founded by brothers Al and Jerry Lapin, the inaugural IHOP restaurant opened in Toluca Lake, California. By 1960, the brand began franchising, highlighting its early aspirations for growth and expansion.
Currently, IHOP operates as part of Dine Brands Global, a company established in 2007 that also includes Applebee's in its portfolio. This partnership combines over a century of hospitality expertise, focusing on individual brand identities while fostering growth and enhancing customer satisfaction.
With its headquarters in Pasadena, California, IHOP has experienced significant growth over the years. Known for their family-friendly environment and reasonably priced meals, IHOP restaurants are particularly famous for their pancakes. The brand’s diverse menu and dedication to warm, welcoming service have solidified its position as a leader in the family dining sector in the USA.
IHOP's international presence extends beyond the United States, reaching places like Puerto Rico, Guam, and countries such as Mexico, Canada, Ecuador, Egypt, India, Pakistan, Panama, Peru, the UAE, and Saudi Arabia.
Initial investment
The initial investment required for a IHOP franchise is
$1,752,000 - $5,223,000.
That is the total cost you would need to finance if you were to start this franchise.
These costs are provided by the franchisor in the Franchise Disclosure Document.
Type of Expenditure
Amount
Location Fee
$15,000 – $15,000
Initial Franchise Fee
$35,000 – $35,000
Construction (Inline/Endcap/Conversion)
$910,000 – $1,520,000
Construction (2700 Prototype)
$1,490,000 – $2,400,000
Construction (Large Format Prototype)
$1,590,000 – $2,900,000
Construction (Dual Brand Restaurant Concept)
$900,000 – $3,500,000
Major Equipment and Fixtures (Inline/Endcap/Conversion)
$532,000 – $740,000
Major Equipment and Fixtures (2700 Prototype)
$493,000 – $595,000
Major Equipment and Fixtures (Large Format Prototype)
$532,000 – $664,000
Major Equipment and Fixtures (Dual Brand Restaurant Concept)
$527,000 – $740,000
Signage (Inline/Endcap/Conversion)
$30,000 – $50,000
Signage (2700 Prototype)
$40,000 – $60,000
Signage (Large Format Prototype)
$40,000 – $60,000
Signage (Dual Brand Restaurant Concept)
$60,000 – $100,000
Smallware Package/Opening Order
$15,000 – $38,000
Inventory
$50,000 – $100,000
Working Capital
$50,000 – $200,000
Insurance
$35,000 – $100,000
On-Location Assistance
$0 – $16,000
Site Approval Costs
$0 – $50,000
Impact Study
$4,000 – $6,000
Opening Training Support Fee
$0 – $65,000
POS Setup, Training and Support Fee
$3,500 – $9,000
Tray POS Software Fees
$1,100 – $3,800 per year
EMV P2P Services
$1,300 – $4,500 per year
Wi-Fi Services
$90 – $450 per month
Kitchen Display System
$15,000 – $30,000
Server Tablets with Payment Device
$7,500 – $30,000
On-Line Ordering
$65 – $200 per month
Mobile Device Management Fee
$24 – $960 per year
Digital Products Service Fee
$0 – $350 per month
Implementation Fees
$500 – $2,000
POS System Hardware
$20,000 – $60,000
Wait Listing
$23 – $75 per month
CRM Fee
$0 – $150 per month
Catering
$0 – $60 per month
Initial Additional Training Expenses
$4,000 – $7,000 per person
Supply Chain Co-op Stock Purchase
$0 – $100
TRAY POS Training
$600 – $1,800
Terminal Device Antivirus
$240 – $600
Additional Funds – 3 months
$16,500 – $85,250
Miscellaneous
$5,000 – $26,000
Total (Inline/Endcap/Conversion)
$1,751,798 – $3,192,865
Total (2700 Prototype)
$2,302,798 – $3,937,865
Total (Large Format Prototype)
$2,441,798 – $4,506,865
Total (Dual Brand Restaurant Concept)
$1,766,798 – $5,222,865
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Type of Expenditure
Amount
Location Fee
$15,000 – $15,000
Initial Franchise Fee
$35,000 – $35,000
Construction (Inline/Endcap/Conversion)
$910,000 – $1,520,000
Construction (2700 Prototype)
$1,490,000 – $2,400,000
Construction (Large Format Prototype)
$1,590,000 – $2,900,000
Construction (Dual Brand Restaurant Concept)
$900,000 – $3,500,000
Major Equipment and Fixtures (Inline/Endcap/Conversion)
$532,000 – $740,000
Major Equipment and Fixtures (2700 Prototype)
$493,000 – $595,000
Major Equipment and Fixtures (Large Format Prototype)
$532,000 – $664,000
Major Equipment and Fixtures (Dual Brand Restaurant Concept)
$527,000 – $740,000
Signage (Inline/Endcap/Conversion)
$30,000 – $50,000
Signage (2700 Prototype)
$40,000 – $60,000
Signage (Large Format Prototype)
$40,000 – $60,000
Signage (Dual Brand Restaurant Concept)
$60,000 – $100,000
Smallware Package/Opening Order
$15,000 – $38,000
Inventory
$50,000 – $100,000
Working Capital
$50,000 – $200,000
Insurance
$35,000 – $100,000
On-Location Assistance
$0 – $16,000
Site Approval Costs
$0 – $50,000
Impact Study
$4,000 – $6,000
Opening Training Support Fee
$0 – $65,000
POS Setup, Training and Support Fee
$3,500 – $9,000
Tray POS Software Fees
$1,100 – $3,800 per year
EMV P2P Services
$1,300 – $4,500 per year
Wi-Fi Services
$90 – $450 per month
Kitchen Display System
$15,000 – $30,000
Server Tablets with Payment Device
$7,500 – $30,000
On-Line Ordering
$65 – $200 per month
Mobile Device Management Fee
$24 – $960 per year
Digital Products Service Fee
$0 – $350 per month
Implementation Fees
$500 – $2,000
POS System Hardware
$20,000 – $60,000
Wait Listing
$23 – $75 per month
CRM Fee
$0 – $150 per month
Catering
$0 – $60 per month
Initial Additional Training Expenses
$4,000 – $7,000 per person
Supply Chain Co-op Stock Purchase
$0 – $100
TRAY POS Training
$600 – $1,800
Terminal Device Antivirus
$240 – $600
Additional Funds – 3 months
$16,500 – $85,250
Miscellaneous
$5,000 – $26,000
Total (Inline/Endcap/Conversion)
$1,751,798 – $3,192,865
Total (2700 Prototype)
$2,302,798 – $3,937,865
Total (Large Format Prototype)
$2,441,798 – $4,506,865
Total (Dual Brand Restaurant Concept)
$1,766,798 – $5,222,865
Franchise Disclosure Document
Below is IHOP's 2025 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
IHOP had 1655 total units in 2025, of which 1655 were franchised-owned and 0 company-owned.
IHOP offers a comprehensive training program for franchisees, focusing on the essential and operational aspects of running a successful restaurant. This training ensures that franchisees and their staff are fully prepared to uphold IHOP's standards.
Certified Leader Training Franchisees must have at least two restaurant leaders trained in IHOP's daily operations, achieving certification through an approved IHOP program like the "SMILE Leadership" initiative.
This extensive training spans approximately six weeks and covers all necessary operational skills and IHOP Brand Standard Operating Practices. The leadership skills capstone, which can be delivered virtually, through eLearning, or in person, is an integral part of this thorough training process.
Initial Opening Training Beyond Certified Leader Training, IHOP requires specialized training for the opening of each new restaurant. The specifics of this "Initial Training" depend on the franchisee's experience and staffing plan and may include hands-on operational training at the franchisee's location.
Territory Protection
IHOP does not provide franchisees with an exclusive territory. Franchisees are given the right to operate at a designated franchised location, but this right is non-exclusive and restricted to that particular location.
IHOP retains all rights, including the ability to own, operate, and franchise restaurants or other business concepts under different names. Additionally, IHOP can produce, franchise, license, distribute, and market products at or through any outlet, regardless of its proximity to the franchised location.
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