Houlihan's vs IHOP Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Houlihan's vs IHOP including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Houlihan's Franchise
IHOP Franchise
Investment $1,600,000 - $4,300,000$414,866 - $3,374,043
Franchise Fee $40,000$40,000 - $50,000
Royalty Fee 4%4.5%
Advertising Fee -3.5%
Year Founded 19721958
Year Franchised 19941960
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee $5K-


Business Experience Requirements
 
Houlihan's Franchise
IHOP Franchise
Experience
  • Industry experience
  • General business experience
  • Must live in same market being developed
    		• -

    Financing Options
     
    Houlihan's Franchise
    IHOP Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/Yes-/-
    Start-up Costs No/Yes-/-
    Equipment No/Yes-/-
    Inventory No/Yes-/-
    Receivables No/Yes-/-
    Payroll No/Yes-/-

    Training & Support
     
    Houlihan's Franchise
    IHOP Franchise
    Training --
    Support Meetings, Field operations/evaluations, Purchasing cooperatives-
    Marketing Co-op advertising, Ad slicks, Regional advertising-
    Operations Franchisees required to buy multiple units/master licenses

    Number of employees needed to run franchised unit: 78

    Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators)

    		-

    Expansion Plans
     
    Houlihan's Franchise
    IHOP Franchise
    US Expansion Yes-
    Canada Expansion No-
    International Expansion No-

    Company Overviews

    About Houlihan's

    Houlihan's has been known for exceptional food at an affordable price since we entered the casual dining segment in 1972. Our menu features a great mix of contemporary pop American cooking - classic dishes reinvented in a fresh modern way and brought to the table with simple, stylish plating and presentations. And then there's the bar. It's always the best place to feel the great energy of Houlihan's. Our bar strategy unites pop culture, trendy premium brands, the newest drinks and vendor insights for a winning combination, resulting in an enviable liquor mix.

    To help us more quickly expand to new markets and trade areas, Houlihan's is seeking sophisticated restaurant operators with experience building out entire markets. At this time, we are not pursuing single-site franchise agreements.

    Our ideal candidate to become a franchise market developer is a successful full-service, multi-unit operator with expertise in one or more large markets (e.g. the top 75 MSAs in the United States). We are seeking entrepreneurial organizations that can thrive in our flexible franchise environment, while having access to growth capital and capital reserves, but experiencing growth constraints with their current restaurant concept(s).

    About IHOP

    The IHOP restaurant chain has been serving a wide variety of breakfast, lunch and dinner selections for more than 57 years. IHOP enjoys a rich heritage and almost universal awareness. Our brand has been built upon the strenght of our franchisees, vendors partners and dedicated employees. IHOP restaurants are franchised and operate by Glendale, California based IHOP Corp. There are over 1,280 IHOP restaurants in the U.S. and Canada.

    The total investment necessary to begin operation of an IHOP franchise at a non-traditional venue is as follows:
    • Full-Service Program: $693,266 to $3,374,043
    • IHOP Limited-Service Program: $414,866 to $1,427,418
    This includes Initial Fees of $39,000 to $79,480 per Full-Service Restaurant and $23,500 to $48,480 per IHOP Limited-Service Restaurant to be developed which must be paid to the Franchisor or an IHOP Affiliate.

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