Denny's vs IHOP Franchise Comparison

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

Start-Up Costs and Fees
 
Denny's Franchise
IHOP Franchise
Investment $305,000 - $2,404,695$414,866 - $3,374,043
Franchise Fee $10,000 - $30,000$40,000 - $50,000
Royalty Fee 4.5%-7%4.5%
Advertising Fee 3%-3.5%3.5%
Year Founded 19531958
Year Franchised 19841960
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee $10K for 10 years-


Business Experience Requirements
 
Denny's Franchise
IHOP Franchise
Experience
  • Industry experience
  • General business experience
  • Operations experience
    		• -

    Financing Options
     
    Denny'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/No-/-
    Payroll No/No-/-

    Training & Support
     
    Denny's Franchise
    IHOP Franchise
    Training On-The-Job Training: 91 hours Classroom Training: 16 hours Additional Training: At existing Denny's restaurants-
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform-
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media Website development Email marketing Loyalty program/app-
    Operations 44% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 80

    Absentee Ownership Allowed

    		-

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

    Company Overviews

    About Denny's

    In 1953, Harold Butler opened Danny's Donuts, a Lakewood, California, stand that served coffee and doughnuts 24 hours a day. The following year, the stand grew and its name was changed to Danny's Coffee Shops. Five years later, there were 20 shops in the chain, and the company changed its name to Denny's. Denny's locations serve breakfast, lunch and dinner choices 24 hours a day. Denny's New & Emerging Markets incentive program is designed to help us recruit exceptional new franchisees to seize valuable market share in new & emerging markets. Under the program, new franchisees can save up to $1 million by developing 4 new restaurants in new & emerging markets. The estimated savings include reduced: initial fees, royalty rate, marketing fees, market planning fee, store design fees, NRO training, and MGIP (development fees). With a flexible, cost-effective prototype & best-in-class systems, Denny's is positioned for sustained franchise growth.

    The total investment necessary to begin operation of a Denny’s franchise is from $1,330,525.50 to $2,404,695.50 for a Denny’s Heritage facility; from $305,000 to $826,000 for a nontraditional Denny’s, including The Den; and from $1,025,528.50 to $1,659,695.50 for Denny’s within a Travel Center (these numbers exclude real estate). This includes the initial franchise fee of $10,000 to $30,000 and the New Restaurant Opening fee of $0 to $36,000, for a total of $10,000 to $66,000, which must be paid to the franchisor or affiliate.

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    #83 on Franchise 500 for 2021  Not on Franchise 500 for 2020


    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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