IHOP
Health Score
65 Our derived Health Score (1–100) = growth (30%) + fees (20%) + scale (20%) + transparency (15%) + data quality (15%) non_traditional_fddsmall_item19_sample
Investment Range Total estimated initial investment from the FDD, including franchise fee, build-out, equipment, and working capital.
$435K–$4.0M
Franchise Fee One-time upfront fee paid to the franchisor for the right to operate under their brand.
$15,000–$25,000
Royalty Ongoing fee paid to the franchisor, typically a percentage of gross revenue, paid weekly or monthly.
4.5%
Gross Sales
Total Units Total number of franchised and company-owned locations currently operating.
1,703
+0.6% growth
Financial Performance (Item 19)
Avg Revenue Average gross revenue reported by franchisees in the FDD's Item 19 financial performance representation.
$1.5M
Sample Size Number of franchise locations included in the financial performance data. Larger samples are more reliable.
33
Above Average Percentage of reporting units that earned above the system average. Below 50% means a few top performers skew the average up.
39.4%
Reporting period: 2024-01-01 to 2024-12-29
Unit Growth
| Year | Total Units | Opened | Closed |
|---|---|---|---|
| 2022 | 1,683 | — | — |
| 2023 | 1,703 | — | — |
| 2024 | 1,703 | — | — |
Other Ongoing Fees
| Fee | Amount | Frequency |
|---|---|---|
| Transfer Training Fee | $$5,000 per person per restaurant (in addition to $7,500 Transfer Fee) | upon transfer |
| Technology Services Support Fee | $$1,700–$2,300 per year | annually |
| Local Advertising | $Up to 1% of Gross Sales | monthly |
Quick Facts
Fee Burden Combined percentage of gross revenue paid in ongoing fees (royalty + advertising/marketing fund).
8%
royalty + ad fund
Franchised Number of locations owned by independent franchisees, not the franchisor.
1,703
Company-Owned Locations owned directly by the franchisor. High ratios can signal corporate confidence — or difficulty selling franchises.
0
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Source: FDD filed in MN, 2025. Extracted 2026-04-05.
Frequently Asked Questions
- Is IHOP a franchise?
- Yes, IHOP is a franchise with 1,703 locations worldwide. Prospective owners purchase the right to operate under the IHOP brand and system by signing a franchise agreement and paying a franchise fee. The full terms are disclosed in the Franchise Disclosure Document (FDD).
- How much does it cost to open a IHOP franchise?
- The total initial investment for a IHOP franchise ranges from $435K to $4.0M, according to the 2025 FDD. This includes the franchise fee, build-out, equipment, and initial working capital.
- How much do IHOP franchise owners make?
- According to the 2025 FDD Item 19, the average annual gross revenue for a IHOP franchise is $1.5M (based on 33 units). Note that gross revenue is not profit — operating costs, royalties, rent, and labor must be subtracted.
- How many IHOP franchise locations are there?
- As of the 2025 FDD, IHOP has 1,703 total units (+0.6% growth rate).