IHOP
Food & Beverage · Full-Service Restaurants
- Active units
- 1,681
- Royalty
- 4.5%
Franchised, year-end 2025
of weekly Net Sales
About IHOP
IHOP® is a popular American franchise restaurant known for its pancakes and breakfast menu. It was founded in 1958 in Los Angeles, California, by brothers Al and Jerry Lapin. Originally called the International House of Pancakes, the name was later shortened to IHOP®. IHOP® is headquartered in Glendale, California. The company operates over 1,650 restaurants across the United States. Apart from its famous pancakes, IHOP® offers a wide range of breakfast and lunch options, including omelettes, waffles, sandwiches, and salads. The restaurant also serves dinner items such as burgers, steaks, and seafood. On a global scale, IHOP® has expanded its operations to other countries, including Canada, Mexico, Saudi Arabia, and the United Arab Emirates. The company has formed partnerships and joint ventures with local operators to facilitate its international expansion. Notably, IHOP® partnered with Alshaya Group to open franchises in the Middle East. IHOP® is a market leader in the breakfast segment of the restaurant industry, with a strong market position in the United States. The company competes with other breakfast chains like Denny's and Waffle House. In terms of global sales, IHOP® has gained recognition and popularity, making it a popular choice for breakfast lovers worldwide. Over the years, IHOP® has achieved significant milestones and made strategic changes to its brand and menu. In recent years, the restaurant introduced a limited-time offer called IHOPPY Hour®, offering affordable menu items in the late afternoon and evening. This initiative aimed to attract new customers and boost sales during non-peak hours. As of the latest updates, IHOP® continues to expand its presence both domestically and internationally. The company focuses on its core menu items while periodically introducing new seasonal offerings and limited-time promotions to keep customers engaged. IHOP® strives to provide a comfortable and enjoyable dining experience for its guests while maintaining its position as a leading breakfast chain in the United States and beyond.
Key terms
- Format-based initial fee
$25,000 Full-Service; $15,000 Limited-Service; $35,000 Dual Branded
- Brand fund
3.5% of Net Sales
- Local advertising
1.0% of Net Sales
- Footprint
800 – 5,000 sq ft
- IHOP NT MUFA (multi-unit)
$0
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2024, 2025, 2026.
Growth
- Total locations1681
Franchised units open at year-end
- New openings37
Gross new units opened during the calendar year
- 1-year unit growth rate-1.3%
Net unit growth versus prior year
- 3-year unit CAGR-0.6%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio0.6×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate-31.5%
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$2.5M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open—
Midpoint of average time from agreement to opening
- Royalty rate4.5%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.