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Casual DiningLimited DataItem 19: ✓ DisclosedHigh Confidence · 100/100

IHOP Franchise Cost and Profit

FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for IHOP.

Based on 2025 FDD · 10 filings in corpus

FranchiseIQ Score
57
C
Moderate Risk
Composite score from 3 risk dimensions. Click for breakdown ↓
Health Score
C
61/100
6/7 metrics · High confidence
Full analysis unlocks:
✓ Cash-on-Cash return
✓ Payback period
✓ SBA default rate
✓ Red flags assessment
✓ Comparable franchises
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Cost and profit at a glance

How much does a IHOP franchise cost and make?

Based on FDDIQ's FDD corpus, a IHOP franchise shows an estimated initial investment of $1.8M – $5.2M. Reported owner economics show $24K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.

Startup Cost
$1.8M – $5.2M
Total initial investment
Profit / Revenue
$24K
FDD Item 19 signal
Payback Signal
146.5 years
Modeled return metric
SBA Default Rate
0.0%
Loan repayment history
Compare franchise costs →Estimate franchise ROI →Check SBA default rates →Browse Casual Dining franchises →Compare similar franchises →

Quick fee read: $50K franchise fee · 8% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.

Free decision snapshot

Before you talk to IHOP, check the numbers buyers usually miss.

The unlocked report ties this brand's FDD disclosures to SBA outcomes, Item 20 movement, fee load, missing-data labels, and buyer assumptions — so you can decide whether this is worth deeper diligence.

FDD disclosure qualitySBA default outcomesItem 20 unit movementFee/cost stressComparable brands
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Total Investment Range$1.8M – $5.2M
MinMid: $3.5MMax

Key Metrics

Franchise Fee
$50K
Royalty Rate
4.5%
Ad Fund Rate
3.5%
Total Burden
8.0%
Royalty + ad fund
Units (2023)
8
-3 vs prior yr
Net Unit Growth
↓ -27.3%
Year over year
Net Closure Rate
27.3%
From FDD Item 20
Cash-on-Cash Return
0.7%
Annual estimated return
Payback Period
146.5 yrs
Break-even timeline
SBA Default Rate
0.0%
vs ~7.2% industry avg
Median Revenue
$1.2M
Item 19 disclosed
Red Flags Assessment
MEDIUM: Significant unit decline
MED ×1
Premium Data

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CoC ReturnPayback PeriodSBA Default RateMedian RevenueEbitda MarginRisk Score
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Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

IHOP vs. Casual Dining Average

MetricIHOPCasual Dining Avg
SBA Default Rate0.0%▲7.2%
Cash-on-Cash Return0.7%▼15.5%
Total Investment$3.5M$250K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

SBA Loan Performance

Real lending data from SBA 7(a) loans (2010-2025). 65 loans across 16 states.

Default Rate
0.0%
Low Risk
Total SBA Loans
65
16 states
Total Loan Volume
$71.9M
SBA 7(a) approved
Avg Loan Size
$1.1M
Per franchisee
Loan Status Breakdown
38
Paid in Full (58%)
15
Currently Active
0
Charged Off
$0
Total Charged Off ($)
● Paid● Active● Charged Off

Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.

Compare

IHOP vs Giordano's® RestaurantsIHOP vs Fala BarIHOP vs PAINT Nail Bar

Multi-Brand Operators · Who Runs This Brand

Sun Holdings
View Hub
Dallas, TX· 1,200+ locations
80 locations of this brand
Part of a multi-brand portfolio. See how operators structure holdings, financing, and growth →
JasonIGH
View Hub
Plano, TX· 120+ locations
60 locations of this brand
Part of a multi-brand portfolio. See how operators structure holdings, financing, and growth →
HDW Hospitality
View Hub
St. Louis, MO· 80+ locations
35 locations of this brand
Part of a multi-brand portfolio. See how operators structure holdings, financing, and growth →
Explore all multi-brand franchise operators →

Similar Franchises · Casual Dining

Giordano's® Restaurants
Limited Data
$645K–$1.8M
Fala Bar
Limited Data
$232K–$824K
PAINT Nail Bar
Limited Data
$218K–$756K
Giordano's® Restaurants
$645K – $1.8M
Fala Bar
$232K – $824K
PAINT Nail Bar
$218K – $756K
Bombshells Restaurant and Bar
$1.8M – $3.1M

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Questions to Ask Before You Sign

5 data-driven questions every IHOP franchise buyer should ask.

  1. 1.What is IHOP's SBA default rate compared to its competitors?Learn more →
  2. 2.Does IHOP disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for IHOP →Validation call guide →
Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.

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