Domestic Franchising

Growth Markets

Currently only seeking candidates for multi-restaurant franchise opportunities

Domestic Growth Markets

  • Birmingham, Alabama
  • San Francisco, California
  • Wichita, Kansas
  • Augusta, Maine
  • Bangor, Maine
  • Minneapolis, Minnesota
  • Springfield, Missouri
  • Lincoln, Nebraska
  • Buffalo, New York
  • Rochester, New York
  • Syracuse, New York
  • Medford, Oregon
  • Portland, Oregon
  • Seattle, Washington
  • Green Bay, Wisconsin

If you're ready to get started, please visit Request for Consideration.

Qualifications & Approval Process

Domestic Franchise Developer Qualification Checklist

  1. Financial Capability to Develop, Equip and Operate One or More IHOP Restaurants
    • Net worth: minimum of $3,000,000 or $1,500,000 per restaurant for 3 or more locations.
    • Liquid assets: minimum of $1,000,000 or $500,000 per restaurant for 3 or more locations.
      • Ability to verify availability of funds, i.e. bank statements, brokerage account statements or loan commitments
      • Ability to obtain financing of construction of restaurant(s)
    • Conventional bank loan
    • SBA loan
    • Build-to-suit opportunities
  2. Operational Capabilities (Ability to Operate an IHOP Restaurant)
    • Restaurant experience or identification of an operator with full-service restaurant experience
    • Management experience
    • Demonstrated leadership skills
    • Business acumen
  3. Defined Development Area
    • Specific area identified for development
    • Proposed development area cannot be subject to existing Single or Multi-Restaurant Development Agreements
    • Proposed development area cannot be subject to existing Area Development or Area Franchise Agreements
  4. Business Plan
    • Written plan for proposed financing of development
    • Written plan for the management of the proposed franchise entity and restaurants

Domestic Franchise Developer Approval Process

  1. Pre-qualification
    • Completion of Request for Consideration form to make sure you meet our basic qualification requirements
    • If you are qualified, IHOP will send you a franchise application for completion
  2. Qualification - Submit Franchise Application
    • Application must be completed in its entirety, signed and dated
    • All shareholders, owners, members, investors and operators of the proposed franchise entity must complete an application
    • Application must be submitted with all required documentation including financial statements and verification of funds
    • Resume/brief biography
  3. Identify Development Interest
    • Multi-Restaurant Development
    • Single Restaurant Development
  4. Complete interview with Director, Franchise Business Development.
  5. We will run a complete credit and background check.
  6. We provide you with detailed information about the IHOP franchise opportunity via our Franchise Disclosure Document (FDD). You must sign, date and return the receipt of the FDD.
  7. You will submit a detailed business plan to IHOP for review.
  8. You will complete interviews with the Regional Director and/or Division Vice President of Operations to discuss your operational and business experience.
  9. You and your partners will attend a visit to the IHOP Restaurant Support Center to interview with key members of the IHOP executive team to gain insight into your vision and goals and to answer any other questions.
  10. Total application package is then reviewed for final approval/disapproval by IHOP executive team.

If you're ready to get started, please visit Request for Consideration.

Investment Costs

Single Restaurant Development Agreement

Initial Fees

Location Fee
$15,000
Franchisee Fee
$50,000

The Location Fee is nonrefundable, but will be applied toward the Franchisee Fee.

Multi-Restaurant Development Agreement

Initial Fees

Development Fee (per restaurant)
$20,000
Franchisee Fee (per restaurant)
$40,000

The Development Fee is nonrefundable, but will be applied toward the Franchisee Fee.

Recurring Fees

Royalty Fee
4.5% of Gross Sales
National Advertising Fund
2.25% of Gross Sales
Local Advertising
0.75% minimum of Gross Sales

Recurring Fees are payable to the company weekly, based on gross sales.

Franchise Term

20 years (could vary depending on lease).

Total Estimated Construction Costs

Prototype Freestanding Building: 5,000 SF (185 Seats).

  Low High
Improvements
Building $450,000 $2,300,000
Equipment
Major Equipment/fixtures $150,000 $400,000
Signage $25,000 $100,000
Smallwares $14,000 $34,000
Total *$639,000 *$2,834,000

If you're ready to get started, please visit Request for Consideration.

FAQ

Is IHOP seeking new franchise candidates?

Yes, IHOP is seeking qualified candidates in select markets both domestically and internationally.

How long is the term of the franchise agreement?

The initial term of the IHOP Franchise Agreement is typically 20 years, but could vary depending on lease.

How much is the franchise fee?

The franchise fee for single restaurant domestic development is $50,000. The franchise fee for multi-restaurants domestic and international franchise development is $40,000 per restaurant.

How much is the royalty fee?

The royalty fee for domestic restaurants is 4.5% of gross sales. The royalty fee for international restaurants is 5.5% of gross sales.

How much is the advertising fee?

Domestic restaurants pay 1% of gross sales for national advertising and 2% of gross sales for local advertising. International restaurants pay 3% of gross sales for local advertising and 1% of gross sales for a brand administration fee.

What are the financial requirements in order to qualify for an IHOP franchise?

For domestic development, minimum financial net worth of $1.5 million and $500,000 in liquid assets.

Is there financing available?

While IHOP does not provide financing, we may introduce you to lending sources.

What support does IHOP provide when I become a franchisee?

IHOP offers a full range of franchise support including training, site selection assistance, restaurant-design-planning assistance, restaurant-opening assistance and ongoing operations and marketing consulting.

Real Estate

General Building Information

  • Freestanding IHOP building containing approximately 5,000 square feet and seats approximately 150 to 185 persons
  • Build-out of prominent end-cap or in-line space in a shopping center
  • Conversion of an existing building to a modified prototypical IHOP restaurant (size may vary but should seat at least 135 persons)

Demographic Requirements

Population
25,000 to 50,000 — 3 mile population
80,000 to 150,000 — 5 mile population
Traffic Count
Greater than 28,000 average daily traffic
Freeway Traffic
Greater than 60,000 average daily traffic
Retail/Office
Density of retail, office and hospitals of approximately 10,000 persons within 1 to 2 miles, in addition to the residential population base within 3 miles

Physical Requirements (freestanding building)

Lot Size
30,000 - 50,000 square feet for standalone parcel
10,000 - 20,000 square feet if parcel is part of a shopping center
Frontage
150 feet minimum
Depth
Approximately 260 feet
Parking
50 to 80 spaces (or reciprocal/shared parking)

Utility Service Requirements

Gas
7" water column (1/2 psi) low pressure; 3" to 4" pipe size or (2 psi) medium pressure, 1 1/2 to 2" pipe size
Water
2" water link with 2" meter (1 1/2" meter minimum allowed per local)
Fire Sprinklers
4" to 6" water line per local conditions, 55 lbs minimum flow pressure fire service if required by local codes
Electrical
800 to 1,000 amp service, 208 v, 3 phase
Sewer
4" line with 1,500 gallon grease interceptor
HVAC
35 to 40 tons for most restaurants

Acquisition Vehicle

The acquisition vehicle that an IHOP Franchise Developer will typically use is to purchase or lease the property.

Lease Terms

IHOP franchise developers typically enter into a triple-net lease, with or without contribution from the landlord, that has a base term of 20 years and options extending for up to 30 years.

The information contained on this website is not an offer to sell or solicitation of an offer to buy a franchise. IHOP will not sell a franchise unless it has been appropriately registered, excluded or exempted, as required by applicable state law, and the IHOP Franchise Disclosure Document (FDD) has been delivered to the purchaser in compliance with state and federal law. If there is any inconsistency or conflict between the information contained on this website and the FDD, the FDD will control. The FDD is available in electronic format, as a .pdf file, or as a paper copy.

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