Yes, IHOP is a franchise: an IHOP franchise is how 1,812 of 1,824 IHOPs operated at the end of 2025, and the 2026 FDD prices a new build at $1,907,682 to $4,823,457 before real estate.
Key takeaways
- Dine Brands Global reported 1,812 franchised and area license IHOP restaurants and 12 company-owned IHOPs as of December 28, 2025, which works out to 99.3% franchised (Dine Brands FY2025 Form 10-K).
- Item 7 of the IHOP Franchise Disclosure Document, issued March 27, 2026 prices a new Inline/Endcap/Conversion IHOP at $1,907,682 to $3,329,845 and a freestanding Large Format Prototype at $2,839,182 to $4,823,457, with land excluded.
- The standard Initial Franchise Fee is $50,000; a $15,000 Location Fee paid first is credited toward it, so the total paid to IHOP is $50,000, not $65,000 (Item 5).
- After opening, IHOP takes a 4.5% royalty and a 3.5% National Advertising Fee on total Gross Sales, 8% combined (Item 6).
- Traditional franchised outlets fell from 1,655 to 1,630 in fiscal 2025: 33 opened, 48 left through non-renewal or ceased operations and 10 were reacquired by IHOP (Item 20, Table 3A).
Who owns IHOP, and how much of the chain is franchised?
Dine Brands Global, Inc., the Pasadena company that also franchises Applebee’s and Fuzzy’s Taco Shop, owns IHOP through a chain of Delaware entities. The franchisor is IHOP Franchisor LLC, formed July 28, 2014, whose parents are IHOP Funding LLC, IHOP SPV Guarantor LLC, IHOP LLC and Dine Brands (Item 1). Almost every IHOP is run by an independent franchisee.
The structure dates from a securitization that closed on or about September 30, 2014, when the IHOP and Applebee’s franchise agreements, leases and franchisee notes were moved into new special-purpose subsidiaries (Item 1). Item 21 includes Dine Brands’ audited statements, but says Dine Brands does not guarantee IHOP Franchisor LLC’s obligations to franchisees.
| Count, as of December 28, 2025 | Figure | Source |
|---|---|---|
| IHOP franchised and area license restaurants, worldwide | 1,812 | Dine Brands 10-K, Item 1 |
| Company-owned IHOP restaurants | 12 (10 acquired from franchisees in March 2025, 2 company developed) | Dine Brands 10-K, Item 1 |
| Share franchised (our arithmetic: 1,812 / 1,824) | 99.3% | Derived from the 10-K counts |
| Domestic franchisees and their restaurants | 228 franchisees, 1,672 restaurants; 85 own one restaurant | Dine Brands 10-K |
| Largest single domestic franchisee | 263 restaurants; five largest own 32% of 1,812 | Dine Brands 10-K |
| Franchised IHOPs in the U.S. and U.S. Territories (FDD basis) | 1,681, of which 25 are Dual Branded | 2026 FDD, Item 1 |
| Traditional plus Non-Traditional Venue franchised outlets | 1,630 + 51 = 1,681 | 2026 FDD, Item 20, Tables 1A and 1B |
The two documents count differently. The 10-K’s 1,672 domestic restaurants exclude U.S. territories, which Dine Brands International franchises, while the FDD’s 1,681 includes them. The FDD figure splits cleanly into 1,630 Traditional Venue and 51 Non-Traditional Venue outlets in Item 20, and Non-Traditional sites such as airports, campuses and travel plazas are sold under a separate IHOP disclosure document.
Florida works differently from the other 49 states. Item 1 names Sunshine Restaurant Partners, LP as IHOP’s only subfranchisor, operating every IHOP in Florida and several in Georgia, and Item 19 leaves its 145 subfranchised restaurants out of the sales data. A buyer targeting a Florida site would deal with that subfranchisor rather than with IHOP directly. Our plain-language walk through all 23 FDD items shows where each of these facts sits in a disclosure document.
What does each IHOP format cost to open under the 2026 FDD?
A new IHOP costs $1,907,682 to $4,823,457 under the Single Store Development Program, depending on the building, and that range leaves out land. Item 7 of the 2026 FDD splits the estimate into three building types plus a Dual Branded IHOP and Applebee’s concept, and prints separate totals for buying an existing restaurant and for each unit built under a Multi-Store agreement.
| Program and format | What it is (Item 7 notes) | Item 7 low | Item 7 high | Source |
|---|---|---|---|---|
| Single Store: Inline/Endcap/Conversion | Shares walls with third parties, or converts an existing restaurant space | $1,907,682 | $3,329,845 | 2026 FDD, Item 7, p. 21 |
| Single Store: 2700 Prototype | Freestanding 2,700 square foot ground-up build | $2,708,932 | $4,240,095 | 2026 FDD, Item 7, p. 21 |
| Single Store: Large Format Prototype | Freestanding 3,500 or 4,600 square foot build | $2,839,182 | $4,823,457 | 2026 FDD, Item 7, p. 21 |
| Single Store: Dual Branded Restaurant Concept | IHOP and Applebee’s in one building; combined cost of both brands | $616,682 | $4,632,445 | 2026 FDD, Item 7, p. 22 |
| Purchase Program | Takeover of a restaurant developed or run by IHOP or an affiliate | $380,550 | $3,735,850 | 2026 FDD, Item 7, p. 25 |
| Multi-Store, per restaurant: Inline/Endcap/Conversion | Single Store total less $10,000 | $1,897,682 | $3,319,845 | 2026 FDD, Item 7, note 4 |
| Multi-Store, per restaurant: 2700 Prototype | Single Store total less $10,000 | $2,698,932 | $4,230,095 | 2026 FDD, Item 7, note 4 |
| Multi-Store, per restaurant: Large Format Prototype | Single Store total less $10,000 | $2,829,182 | $4,813,457 | 2026 FDD, Item 7, note 4 |
A Large Format Prototype tops the 2026 range at $4,823,457; a Purchase Program takeover starts at $380,550. IHOP FDD issued March 27, 2026, Item 7.
The 2026 filing offers no Flip’d or small-footprint format. The only Flip’d reference is Item 20 note 6, which records one Ohio Flip’d location converted to a Traditional Venue and added back to the outlet count. The smallest new-build option in this document is the Inline/Endcap/Conversion category, and the lowest Dual Branded figure, $616,682, reflects converting an existing IHOP or Applebee’s rather than building new (Item 7, note 7).
Which Item 7 lines move the total most?
Construction and equipment make up most of the spread. Construction runs $960,000 to $1,596,000 for Inline/Endcap/Conversion, $1,800,250 to $2,558,250 for the 2700 Prototype and $1,871,500 to $3,067,612 for the Large Format Prototype, while major equipment and fixtures add $587,000 to $807,000 depending on format (Item 7).
| Item 7 line (Single Store) | Low | High | What drives it |
|---|---|---|---|
| Construction, Large Format Prototype | $1,871,500 | $3,067,612 | Ground-up build, site work, union or nonunion labor region (note 5) |
| Major equipment and fixtures, Large Format | $646,000 | $807,000 | Size and complexity of the kitchen |
| Working capital | $50,000 | $200,000 | Retained by you |
| Insurance, first-year premium | $35,000 | $100,000 | Assumes the full year is paid before opening (note 8) |
| Additional funds, 3 months | $16,500 | $85,250 | Payroll, utilities, attorneys and accountants |
| POS system hardware | $20,000 | $60,000 | IHOP-approved system; 8 to 12 server tablets cost $7,500 to $30,000 more |
| Real estate | Not estimated | Typical restaurant 2,700 to 6,000 square feet on a 30,000 to 60,000 square foot lot (note 4) | |
The three-month window for additional funds follows 16 CFR 436.5(g), which defines a reasonable initial period as at least three months. IHOP’s general notes add that the estimate excludes rent, royalties, advertising fees, cost of goods sold, financing costs and any salary or draw for the owner, and IHOP warns that slow early sales have required additional funds at some restaurants in the past.
Which fees go to IHOP before the doors open?
A Single Store franchisee pays IHOP a $15,000 Location Fee to hold a site or trade area, then the $35,000 balance of the $50,000 Initial Franchise Fee at signing (Item 5). Opening training support of $0 to $65,000 and up to $9,000 plus airfare for on-site POS setup are also paid to IHOP, and every fee in Item 5 is non-refundable.
| Payment to IHOP (Item 5) | Amount | When |
|---|---|---|
| Location Fee (Single Store Development Agreement) | $15,000, credited to the Initial Franchise Fee | On signing; holds a site or trade area for about 180 days |
| Initial Franchise Fee, Single Store | $50,000 | On signing the Franchise Agreement |
| Initial Franchise Fee, Dual Branded Restaurant | $35,000 | On signing |
| Development Fee, Multi-Store | $20,000 times the number of restaurants ($40,000 to $300,000 for 2 to 15) | On signing the Multi-Store Development Agreement |
| Initial Franchise Fee, Multi-Store | $40,000 per restaurant, with $20,000 of Development Fee credited | On each Franchise Agreement |
| Initial Franchise Fee, Purchase Program | $0 to $300,000 | On signing; IHOP may finance part |
| Opening Training Support Fee | $0 to $65,000 | On signing, set by the number of trainers |
| POS setup, training and support | Up to $9,000 plus airfare for each of the first three openings; $3,500 remote from the fourth | Upon invoice |
| Equipment and smallwares bought from IHOP (optional) | About $15,000 to $38,000 | Before opening |
The arithmetic below shows why the per-restaurant development cost drops by $10,000 under a Multi-Store agreement, using only the fees printed in Item 5 and Item 7 note 4. IHOP also says that in fiscal 2025 it charged Initial Franchise Fees ranging from $0 to $50,000 at certain locations because of circumstances unique to them.
| Step | Single Store | Multi-Store (per restaurant) |
|---|---|---|
| Up-front fee | $15,000 Location Fee | $20,000 Development Fee |
| Balance due on the Franchise Agreement | $50,000 less $15,000 = $35,000 | $40,000 less $20,000 = $20,000 |
| Total paid to IHOP per restaurant | $50,000 | $40,000 |
| Development Fee for 2 restaurants / 15 restaurants | Not applicable | 2 x $20,000 = $40,000 / 15 x $20,000 = $300,000 |
A development schedule carries its own risk: missing an opening date can end a Multi-Store agreement, and the fee is not refunded (Item 11). Our study of area development agreements compares how other franchisors price and enforce these schedules.
What does IHOP collect every week after opening?
IHOP bills a 4.5% royalty and a 3.5% National Advertising Fee on total Gross Sales weekly, each due 16 days after the invoice date, for 8% combined (Item 6). There is currently no Local Advertising Fee. Technology, audit and gift card charges sit on top, and Item 6 lists more than 20 fee types in total.
| Recurring or event fee (Item 6) | Amount | Trigger |
|---|---|---|
| Royalty | 4.5% of total Gross Sales | Weekly |
| National Advertising Fee | 3.5% of total Gross Sales | Weekly |
| Dine Brands Franchisee Technology Services Support (Help Desk) | $1,900 to $2,500 per year | Billed annually |
| Payment Protection Fee | $150 to $500 per month | Not currently required |
| National Gift Card Program charge | 15% of the redeemed portion of gift cards sold nationally | Periodic settlement |
| Food Safety Evaluation reaudit | About $300 each; $1,200 for four | Failed routine evaluation |
| Egg audit | About $125 each; $500 for four | Egg temperatures above 41°F |
| Late fee | 1-1/2% per month or the legal maximum, whichever is less | Late payment |
| Renewal Fee | $10,000 | New Franchise Agreement on renewal |
| Transfer Fee | $7,500 plus $5,000 training fee per person per restaurant | Approved sale of the franchise |
Note 2 to Item 6 lets IHOP reduce or waive the royalty for a period under the Purchase Program or negotiated development deals, after which it returns to 4.5%. Delivery fees charged through Olo, Inc. dispatch are excluded from Gross Sales. Our royalty rate dataset across franchise systems sets IHOP’s 4.5% against other restaurant brands.
Is buying an existing IHOP from the franchisor cheaper?
Usually on paper: the Purchase Program total is $380,550 to $3,735,850 in Item 7, against $1,907,682 or more to build. The buyer takes over a restaurant IHOP or an affiliate developed or ran, typically subleases the land and building and leases the equipment, and pays an Initial Franchise Fee of $0 to $300,000 set by location, lease term and condition (Item 5).
| Purchase Program line (Item 7) | Low | High |
|---|---|---|
| Initial Franchise Fee | $0 | $300,000 |
| Real estate (if bought from IHOP Property LLC) | $300,000 | $3,000,000 |
| Equipment, smallwares and fixtures (one week of equipment lease rent) | $50 | $1,500 |
| Inventory | $10,000 | $100,000 |
| Working capital | $10,000 | $100,000 |
| Insurance | $35,000 | $100,000 |
| Total as printed in the Item 7 table | $380,550 | $3,735,850 |
IHOP is the lender here. Item 10 says IHOP may finance up to 95% of a Purchase Program fee, with a down payment typically of 20% but as low as 5%, interest of 1% to 12% a year, and weekly payments over one to eight years when the fee is $500,000 or less. Item 7 note 2 adds that IHOP affiliates customarily charge rent above what they pay the master landlord. Item 5 also states that no restaurants were franchised under the Purchase Program in fiscal 2025, and resales between franchisees run through a transfer instead: Item 20, Table 2 counts 69 such transfers in 2025. Our comparison of franchise transfer fees puts IHOP’s $7,500 charge in context.
How long does it take to open a new IHOP?
IHOP estimates one to 18 months from signing a Franchise Agreement to opening a newly developed restaurant, and one hour to 16 weeks for a Purchase Program takeover (Item 11). Site acceptance alone takes about seven months by IHOP’s estimate, and the owner and managers complete the six-week SMILE Leadership program before opening.
- Sign a Single Store Development Agreement and pay the $15,000 Location Fee; IHOP holds a site or trade area for about 180 days (Items 1 and 5).
- Submit the site package; IHOP estimates about seven months to accept a site, and a site within five miles of a restaurant covered by its impact policy needs a third-party impact study costing $4,000 to $6,000 (Items 7, 11 and 12).
- Sign the Franchise Agreement and pay the $35,000 balance of the fee (Item 5).
- Complete SMILE Leadership: six weeks at 45 to 50 hours per week, in person at an IHOP restaurant or training center (Item 11).
- Open with IHOP New Restaurant Opening trainers for up to three weeks, two before and one after opening (Item 11).
Delays cost money. A franchisee who needs more time pays $170 per day under a Single Store agreement or $350 per day for delayed development, and IHOP may grant up to 18 extra months for a fee it sets, capped at $27,000 (Item 6, note 4). Our research on franchise opening timelines compares IHOP’s 18-month ceiling with other systems.
Is the IHOP system growing or shrinking?
The traditional franchised system shrank in each of the last two years. Item 20 shows franchised Traditional Venue outlets at 1,658 at the end of 2023, 1,655 at the end of 2024 and 1,630 at the end of 2025, while IHOP itself went from zero company-owned restaurants to 12, ten of them reacquired from franchisees.
| Fiscal year (Table 3A, Traditional Venue) | Opened | Non-renewal | Ceased operations, other reasons | Reacquired by IHOP | Terminations | Franchised at year end |
|---|---|---|---|---|---|---|
| 2023 | 35 | 3 | 20 | 0 | 0 | 1,658 |
| 2024 | 25 | 12 | 17 | 0 | 0 | 1,655 |
| 2025 | 33 | 9 | 39 | 10 | 0 | 1,630 |
In fiscal 2025, 33 traditional franchised IHOPs opened while 48 left through non-renewal or closure and 10 were reacquired. IHOP FDD issued March 27, 2026, Item 20, Table 3A.
The 2024 row does not add up on its face: 1,658 plus 25 minus 29 is 1,654, not 1,655. Item 20 note 6 explains the extra outlet as one Flip’d location in Ohio, previously excluded, converted to a Traditional Venue. Looking ahead, Table 5A projects 32 new franchised and 6 new company-owned traditional outlets in fiscal 2026, plus 2 signed agreements not yet open.
Item 20 lists zero terminations across all three years, so every 2025 exit was recorded as a non-renewal, a closure for other reasons or a reacquisition. Non-Traditional Venue outlets grew from 45 to 51 over the same two years (Table 1B). Our guide to reading restaurant franchise closures explains what each Item 20 column does and does not mean.
What do Items 12, 17 and 19 say about territory, term and owner income?
Item 12 opens with “You will not receive an exclusive territory,” then grants a Franchised Area, drawn by IHOP’s computer modeling, in which IHOP will not place another Traditional Venue IHOP while you comply. The term is typically 20 years, matched to the lease, with one renewal of not more than 10 years (Item 17).
- Territory: the current agreement also bars full-service, full-menu non-traditional IHOPs in travel plazas, truck stops and convenience stores within 5 miles of the restaurant (Item 12).
- Impact policy: owners whose agreements predate April 1, 2013 can receive support if a new IHOP opens within five miles or within 10 minutes on an interstate, and the new franchisee must reimburse IHOP for it (Item 12).
- Renewal: requires signing the then-current agreement, which may carry higher advertising fees and a different Franchised Area, plus a $10,000 Renewal Fee (Items 6 and 17).
- Item 19: contains two charts of historical gross sales for traditional franchised restaurants, one by U.S. Census region and one by freestanding, in-line and endcap prototype, for 2024 and 2025. It excludes 145 subfranchised, all non-traditional and all 24 Dual Branded restaurants.
Owner income depends on sales against the 8% in Item 6 fees, rent, labor and food costs, and the FDD gives no profit or owner pay figures. We do not reproduce the Item 19 sales figures on this site; read them in Item 19 of the 2026 FDD itself, and use our guide to reading Item 19 disclosures to see what gross sales charts leave out. Current and former owners are listed in Exhibits A and A-1, and an independent group, the Blue Roof Franchisee Association, asked to be named in Item 20; our research on independent franchisee associations covers how such groups work.
Which IHOP program matches your capital and plan?
The choice is between building one restaurant, committing to a development schedule, or taking over an existing unit. The decision table uses thresholds printed in the FDD; IHOP decides which program it will offer any applicant, and Item 1 says it may not allow every buyer to use every program.
| If your situation is | Then the matching program is | FDD threshold to check |
|---|---|---|
| IHOP offers you an operating restaurant it or an affiliate runs | Purchase Program | $380,550 to $3,735,850 total; fee financing up to 95%, 1% to 12% interest (Items 7, 10) |
| You can fund 2 to 15 restaurants on a negotiated schedule | Multi-Store Development | $40,000 to $300,000 Development Fee; site submitted 8 months before each deadline, approved 6 months before (Items 5, 11) |
| You want one new restaurant and can carry $1.9 million or more plus land | Single Store Development | $15,000 Location Fee; $1,907,682 to $4,823,457 by format (Items 5, 7) |
| You already operate an IHOP or Applebee’s and could add the second brand | Dual Branded Restaurant | $35,000 fee; $616,682 to $4,632,445; two franchise agreements (Items 1, 5, 7) |
| Your target site is in Florida | Through Sunshine Restaurant Partners, LP | IHOP’s only subfranchisor (Item 1) |
| Your target site is an airport, campus, casino or travel plaza | Non-Traditional Venue FDD | Separate disclosure document (Item 1) |
IHOP’s Item 10 financing covers part of the Initial Franchise Fee, mainly under the Purchase Program, not the $1.9 million to $4.8 million build, and every owner of a franchisee entity, with spouses as applicable, signs a personal guarantee unless IHOP waives it. Our guide to franchise financing options covers SBA and conventional routes. Nothing here is legal, tax or financial advice; an IHOP deal turns on the specific site, lease and agreement IHOP puts in front of you.
Where do older IHOP numbers online differ from the 2026 filing?
Several ranking pages still quote the 2024 or 2025 FDD, or list no FDD year at all. The 2026 filing, issued March 27, 2026, moves the top of the new-build range to $4,823,457 and changes the Help Desk fee. The table sets each circulating claim against the 2026 primary source, described without naming the publishing site.
| Claim found online | What the primary source says | Source |
|---|---|---|
| A data profile citing the 2024 FDD: investment $1,766,072 to $3,161,997 and 1,658 units | $1,907,682 to $4,823,457 for Single Store builds; 1,630 franchised traditional outlets at the end of 2025 | 2026 FDD, Items 7 and 20 |
| A 2026 lender guide: “$65,000 total” fee ($15,000 Location Fee plus $50,000) | The Location Fee is applied to the Initial Franchise Fee; total $50,000 | 2026 FDD, Item 5 |
| The same guide: technology support fee $1,700 to $2,300 per year | $1,900 to $2,500 per year, subject to change | 2026 FDD, Item 6 |
| A thin brand profile: franchise fee $39,000 and investment $92,000 to $810,000 | $50,000 standard fee; no format in Item 7 starts below $380,550 | 2026 FDD, Items 5 and 7 |
| The FDD’s own cover page: Purchase Program up to $4,035,850 | The Item 7 table’s line items add to $3,735,850 | 2026 FDD, cover page vs Item 7, p. 25 |
How we compiled this
We read the full IHOP Franchisor LLC Traditional Program FDD issued March 27, 2026, as filed with the Minnesota Department of Commerce (CARDS file 7489), the Dine Brands Form 10-K for fiscal 2025 from SEC EDGAR, and 16 CFR 436.5 from govinfo, all accessed in November 2026. Every figure is quoted as printed with its item number; the 99.3% share and the Item 20 reconciliation are our arithmetic. We excluded Item 19 sales figures, franchisee names and any unverified net worth or liquidity criteria, because IHOP’s franchise site blocked our access.
Frequently asked questions
Is IHOP a franchise?
Yes. Dine Brands Global reported 1,812 franchised and area license IHOP restaurants and only 12 company-owned IHOPs as of December 28, 2025, about 99.3% franchised. New U.S. franchises are sold by IHOP Franchisor LLC under the Traditional Program FDD issued March 27, 2026, with Florida restaurants run through the subfranchisor Sunshine Restaurant Partners, LP.
How much does an IHOP franchise cost?
Item 7 of the 2026 IHOP FDD estimates $1,907,682 to $3,329,845 for an Inline/Endcap/Conversion restaurant, $2,708,932 to $4,240,095 for the 2700 Prototype and $2,839,182 to $4,823,457 for the Large Format Prototype. Land is not included. Taking over an existing restaurant under the Purchase Program is estimated at $380,550 to $3,735,850.
What is the IHOP franchise fee?
The standard Initial Franchise Fee is $50,000 for a single restaurant, and a $15,000 Location Fee paid earlier is credited toward it (Item 5). Dual Branded IHOP and Applebee’s restaurants carry a $35,000 fee, Multi-Store developers pay $40,000 per restaurant with a $20,000 credit, and Purchase Program fees run from $0 to $300,000.
How much do IHOP franchise owners make?
The FDD gives no owner pay or profit figures. Item 19 of the 2026 FDD contains historical gross sales charts by Census region and by prototype, which we do not reproduce. What an owner keeps depends on those sales minus the 4.5% royalty, the 3.5% advertising fee, rent, labor and food costs, so ask current owners listed in Exhibit A about margins.
Who owns IHOP?
Dine Brands Global, Inc. of Pasadena, California owns IHOP. The franchisor, IHOP Franchisor LLC, was formed on July 28, 2014, and its parents are IHOP Funding LLC, IHOP SPV Guarantor LLC, IHOP LLC and Dine Brands (Item 1). Dine Brands also franchises Applebee’s and Fuzzy’s Taco Shop, and the IHOP chain began in 1958.
Is there a list of IHOP franchise owners?
Yes. Exhibit A of the 2026 IHOP FDD lists every U.S. IHOP outlet with contact details, and Exhibit A-1 lists franchisees who left the system in fiscal 2025. We do not republish names. Item 20 notes that some owners signed confidentiality clauses, and the Blue Roof Franchisee Association is the independent owner group named in the document.
Does IHOP still franchise Flip'd restaurants?
Not under the 2026 Traditional Program FDD. Its Item 7 offers Inline/Endcap/Conversion, 2700 Prototype, Large Format Prototype and Dual Branded formats only. The single Flip’d reference is Item 20 note 6, which records one Flip’d location in Ohio converted to a Traditional Venue and added to the 2024 outlet count.
Sources
- IHOP Franchisor LLC (Traditional Program) Franchise Disclosure Document, issued March 27, 2026, Minnesota Department of Commerce CARDS, accessed November 8, 2026. Items 1, 3, 5, 6, 7, 10, 11, 12, 17, 19, 20, 21.
- Dine Brands Global, Inc. Form 10-K for the fiscal year ended December 28, 2025, SEC EDGAR, filed February 25, 2026, accessed November 8, 2026.
- 16 CFR 436.5, Disclosure items (FTC Franchise Rule), Code of Federal Regulations, 2025 edition, govinfo, accessed November 8, 2026.