IHOP Franchise Cost (2025)
Complete cost breakdown for IHOP franchise: $435K–$4041K investment, 4.5% royalty, franchise fee, and ongoing costs. From the official 2025 FDD.
Source: 2025 FDD filed in MN
Total Investment
$435K–$4.0M
Franchise Fee
$15K–$25K
Non-refundable
Royalty
4.5%
Gross Sales
Ad Fund
3.5%
Gross Sales; National Advertising Fund up to 3.5% of Gross Sales. Local Advertising up to an additional 1% of Gross Sales.
Ongoing Fees
Monthly and annual costs after opening.
| Fee | Amount | Notes |
|---|---|---|
| Royalty | 4.5% of gross sales | |
| Ad Fund | 3.5% of gross sales |
Revenue Context
Average Revenue
$1.5M
From Item 19 (2025 FDD)
Investment-to-Revenue Ratio
0.3x
Lower is better (min inv ÷ avg rev)
Annual Fee Burden
8.0%
Royalty + ad fund as % of gross sales
At average revenue of $1.5M, you'd pay approximately $69K/year in royalties alone, plus $53K/year in ad fund contributions.
Other Upfront Fees
| Fee | Amount |
|---|---|
| Opening Training Support Fee — Full-Service (up to; varies by trainers required) | $65K |
| Opening Training Support Fee — Limited-Service (up to; varies by trainers required) | $28K |
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