IHOP vs La Madeleine Franchise Comparison

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

Start-Up Costs and Fees
 
IHOP Franchise
La Madeleine Franchise
Investment $414,866 - $3,374,043$1,249,362 - $3,088,747
Franchise Fee $40,000 - $50,000$40,000
Royalty Fee 4.5%5%
Advertising Fee 3.5%2.5%
Year Founded 19581983
Year Franchised 19602011
Term Of Agreement -Term of agreement not renewable
Term Of Agreement -Term of agreement not renewable
Renewal Fee --


Business Experience Requirements
 
IHOP Franchise
La Madeleine Franchise
Experience -• Passionate about the la Madeleine brand and our food • $5 million net worth; liquid assets of $2.5 million • Dedicated to developing multiple restaurants in a given market • Excellent knowledge of the local retail real estate market • Resources to develop and operate at least three (3) bakery cafés in a given territory • Strong track record as a multi-unit restaurant operator • Cultural fit

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

Training & Support
 
IHOP Franchise
La Madeleine Franchise
Training -• Ongoing field support • Store opening assistance • Continuous training • Extensive six-week training program for Operations Directors, General Managers, and Managers • Ongoing culinary development On-The-Job Training: 416 hours Classroom Training: 64 hours
Support -Real Estate • Market evaluation and planning • Site selection assistance • LOI and contract negotiation assistance • In-house real estate resources • Identifying and securing local representation Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing - • Grand opening assistance • Store opening and PR resources • Local marketing support • Creative support for national promotional events Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Email marketing Loyalty program/app
Operations --

Expansion Plans
 
IHOP Franchise
La Madeleine Franchise
US Expansion -Yes
Canada Expansion --
International Expansion -Yes

Company Overviews

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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About La Madeleine

La Madeleine's serves handcrafted, crave-worthy country French-inspired dishes makes them a favorite with critics and guests alike. Their casual French home atmosphere and versatile menu makes them the perfect place for any meal or a special afternoon treat. La Madeleine guests are greeted with a friendly "bonjour" and an inviting ambiance where they can relax while enjoying time with friends and family. With a menu that satisfies cravings morning, noon, and night, it's no wonder guests keep coming back. For experienced restaurateurs, la Madeleine presents an exciting, financially sound opportunity to share in a unique concept with great potential. At la Madeleine we pride ourselves on our handcrafted food and ambiance we share with our guests. But behind the scenes we work even harder to provide support to our franchisees to help them grow both their business and the la Madeleine brand. We understand investing in the la Madeleine name and menu is just part of the equation for you. World-class operations and efficiencies are equally important and la Madeleine has those. Our commitment to you as a franchisee is to constantly work to find better, more efficient and more profitable ways to help you operate your la Madeleine franchise.

The total investment necessary to begin operation of a la Madeleine franchise is as follows:
  • Traditional Café: $1,249,362 to $3,088,747 (excluding real estate and landlord allowances). This includes $43,630 that must be paid to the franchisor or their affiliates.
  • Petite Café: $1,426,200 to $1,747,400. $390,983 to $1,718,012 (excluding real estate and landlord allowances). This includes between $20,000 and $43,630 that must be paid to the franchisor or their affiliates.
"Entrepreneur

#125 in Franchise 500 for 2020.
#141 in Franchise 500 for 2021.