IHOP franchise
IHOP is a family restaurant chain known for pancakes, serving breakfast all day alongside lunch and dinner. It belongs to Dine Brands, which also owns Applebee's. At the end of 2025 there were 1,642 IHOP locations in the US, 1,630 franchised and 12 company-owned.
- Cost to open
- $1.91M–$3.33M
- Franchise fee
- $50,000
- Royalty
- 4.5%
- Locations, 2025
- 1,642−16 in 3 yrs
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Company snapshot
- Agreement length
- 20 years
- Territory
- No exclusive territory
- Financing
- Some financing offered
From IHOP Franchisor LLC’s 2026 filing.
How much a IHOP franchise costs
Opening a single in-line or end-cap IHOP costs an estimated $1,907,682 to $3,329,845. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: IHOP Franchisor LLC, 2026 filing, page 28
IHOP franchise fee
The franchise fee is $50,000, for a new restaurant ($35,000 for a dual-branded restaurant). You pay it when you sign the franchise agreement.
Source: IHOP Franchisor LLC, 2026 filing, page 19
Royalty and ongoing fees
| Royalty | 4.5% of gross sales, billed weekly. |
|---|---|
| Brand or marketing fund | 3.5% of gross sales to the national advertising fund. |
Source: IHOP Franchisor LLC, 2026 filing, page 21
Sales and earnings
Shares figures IHOP publishes sales or earnings figures for its locations: it gives average, median, high and low gross sales by region for traditional franchised restaurants. The full tables, with notes on which locations are counted, are in its filing.
Source: IHOP Franchisor LLC, 2026 filing, page 66
Locations opened and closed
| Year | Franchised | Company-owned | Closed |
|---|---|---|---|
| 2023 | 1,658 (+12) | 0 | 23 |
| 2024 | 1,655 (−3) | 0 | 29 |
| 2025 | 1,630 (−25) | 12 | 58 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
Source: IHOP Franchisor LLC, 2026 filing, page 68
How IHOP compares
Of the 59 restaurant franchises on this site, IHOP is the 47th cheapest to open and the 21st largest by number of locations.
| Measure | IHOP | Typical restaurant |
|---|---|---|
| Cost to open, low end | $1.91M | $846K |
| Royalty | 4.5% | 5% |
| Closed or left per year | 2.2% | 2.3% |
| Change in franchised locations, 3 yrs | −1% | +5.3% |
| Shares earnings figures | Yes | 49 of 59 |
Typical is the median across the 59 brands in restaurant franchises.
Other restaurant franchises
IHOP franchise questions
Does IHOP help with financing?
Yes, in some cases. IHOP may finance part of the cost, such as the franchise fee, for qualified buyers; terms are in its filing.
Do IHOP franchisees get a protected territory?
No. IHOP grants the right to run one location but no exclusive area, so another IHOP can open nearby.
How long is a IHOP franchise agreement?
The initial term is 20 years. Renewal is usually possible if you're in good standing, often for a fee and a remodel.
Is IHOP growing or shrinking?
Over the last 3 years 93 franchised locations opened and 110 closed or left, a net change of −1%. About 2.2% of locations closed or left each year. That is in line with the 2.3% typical for restaurant franchises.
How does IHOP compare with other restaurant franchises?
Of the 59 restaurant franchises here, IHOP is the 47th cheapest to open (low end $1.91M against a $846K median) and the 21st largest by number of locations. Its 4.5% royalty is in line with the 5% median.
Does IHOP say how much franchisees make?
Yes: it gives average, median, high and low gross sales by region for traditional franchised restaurants. Your results can differ; the filing explains which locations are counted.