Applebee's vs IHOP Franchise Comparison

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

Start-Up Costs and Fees
 
Applebee's Franchise
IHOP Franchise
Investment $2,009,038 - $8,267,250$414,866 - $3,374,043
Franchise Fee $35,000$40,000 - $50,000
Royalty Fee 4% initially, 5% possible after4.5%
Advertising Fee not less than 4%3.5%
Year Founded 19801958
Year Franchised 20141960
Term Of Agreement --
Term Of Agreement --
Renewal Fee --


Business Experience Requirements
 
Applebee's Franchise
IHOP Franchise
Experience Our Ideal Franchise Partner -Is committed to a long term franchise relationship built on trust and respect -Knows how to build a brand -Understands that accessible pricing and value are core components of casual dining -Has prior hospitality experience or knowledge, particularly in critical areas like supply chain, quality assurance, real estate development, and marketing -Has or will have infrastructure dedicated to the development of our brand -Has material liquidity and net worth, with access to capital -Has a track record of developing multi-unit restaurant systems -

Financing Options
 
Applebee's Franchise
IHOP Franchise
  In-House/3rd PartyIn-House/3rd Party
Franchise Fees -/--/-
Start-up Costs -/--/-
Equipment -/--/-
Inventory -/--/-
Receivables -/--/-
Payroll -/--/-

Training & Support
 
Applebee's Franchise
IHOP Franchise
Training --
Support --
Marketing --
Operations --

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

Company Overviews

About Applebee's

Applebee's is the largest casual dining chain in the world with sales of $4.7 billion in 2006. Already the business staple of friendly casual dining, Applebee's is pursuing expansion opportunities, and is looking for individuals/firms with a serious interest in developing our successful brand internationally. For years Applebee's has embraced neighborhood culture, providing high-quality food and drinks in a friendly and informal atmosphere. Compared to the competition, Applebee's consistently delivers food to the consumer faster as well as more affordably. We plan to take this same mantra abroad, creating a warm, inviting dining experience designed around location-specific demographics and customer preference information.

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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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