Huddle House vs IHOP Franchise Comparison

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

Start-Up Costs and Fees
 
Huddle House Franchise
IHOP Franchise
Investment $510,435 - $1,379,575$414,866 - $3,374,043
Franchise Fee $25,000 - $35,000$40,000 - $50,000
Royalty Fee 4%4.5%
Advertising Fee 510,435 to $1,379,5753.5%
Year Founded 19641958
Year Franchised 19661960
Term Of Agreement 15 years-
Term Of Agreement 15 years-
Renewal Fee --


Business Experience Requirements
 
Huddle House Franchise
IHOP Franchise
Experience --

Financing Options
 
Huddle House 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
 
Huddle House Franchise
IHOP Franchise
Training --
Support Newsletter, Meetings, Toll-free phone line, Grand opening, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives-
Marketing Co-op advertising, Ad slicks, National media-
Operations 40% of all franchisees own more than one unit

Number of employees needed to run franchised unit: 24

Absentee ownership of franchise is allowed. (60% of current franchisees are owner/operators)

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Expansion Plans
 
Huddle House Franchise
IHOP Franchise
US Expansion Yes-
Canada Expansion No-
International Expansion No-

Company Overviews

About Huddle House

Huddle House started in Atlanta in the 1960s. The restaurants cater to travelers, with co-branded interstate locations at gas stations such as Exxon, BP, Citgo, Shell and Texaco. All franchises are open 24 hours a day, seven days a week, and offer breakfast, lunch and dinner at any time of day. Menus feature steaks, chicken, pork chops and seafood.

Breakfast is not only the most important meal of the day, it’s everyone’s favorite. When you package a homestyle meal that everyone loves with amazing Southern hospitality, a half-century of tradition and a lively American diner that serves any meal of the day at any time of the day, you have Huddle House - America’s iconic breakfast franchise.

At Huddle House, customers are always welcome, and they’re usually greeted by name. Decatur, GA, was just a little farm town back in 1964 when founder John Sparks first came up with the idea for Huddle House. He saw a group of boys after football practice, huddling up in his restaurant, helmets and footballs still in hand. Sparks envisioned a place where the community could gather, or huddle up, any time.


The total investment necessary to begin operation of a Huddle House franchise is $510,435 to $1,379,575 for a New Development Unit when leasing the land and building and purchasing the equipment and signs. This includes $83,490 to $113,490 that must be paid to the franchisor or its affiliates.
If you sign a development agreement for the opportunity to develop multiple Huddle House franchises (the franchisor does not specify a minimum number to be eligible for a development agreement), you will pay a development fee for the rights to those development opportunities. The development fee will vary depending on the number of Huddle House Restaurants you are committed to develop, and is calculated as the total of the $35,000 for your first franchise and $17,500 for each additional franchise to be developed (the development fee is separate from the initial franchise fee).
The total investment necessary under a Market Development Agreement (based on a commitment of two to three Huddle House Restaurants) ranges from $55,000 to $72,500. This includes $52,500 to $70,000 that must be paid to the franchisor.


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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