IHOP vs Zaxby's Franchise Comparison

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

Start-Up Costs and Fees

 
IHOP Franchise
Zaxby's Franchise
Investment $414,866 - $3,374,043$343,200 - $695,200
Franchise Fee $40,000 - $50,000$35,000
Royalty Fee 4.5%6%
Advertising Fee 3.5%2.87%-5%
Year Founded 19581990
Year Franchised 19601994
Term Of Agreement --
Term Of Agreement --
Renewal Fee --


Business Experience Requirements

 
IHOP Franchise
Zaxby's Franchise
Experience -Prospective Franchisees must meet the following criteria to be considered: Collective net worth of at least $1,000,000, with liquid assets greater than $500,000 (liquidity being defined as cash or any asset that could be converted to cash within ten business days). Ability to satisfactorily pass background checks for the following: reasonable credit worthiness, no criminal convictions, no history of extensive litigation, and satisfactory motor vehicle report. Willingness of all investors to personally guarantee any obligations that are required under the license agreement. Willingness to make a commitment to this venture within 60 – 90 days of signing a license agreement. Belief that guest service is of critical importance in restaurant operations.

Financing Options

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

Training & Support

 
IHOP Franchise
Zaxby's Franchise
Training -The initial training program is eight weeks long, consisting of a one-week orientation phase at Zaxby's Franchising, Inc.'s training center, three two-week phases at a training restaurant and the final one-week phase back at ZFI's training center. Ongoing support and training updates, in addition to other business development practices - including onsite inspections - are conducted regularly throughout the franchise system.
Support --
Marketing --
Operations --

Expansion Plans

 
IHOP Franchise
Zaxby's Franchise
US Expansion -Yes
Canada Expansion --
International Expansion --

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 Zaxby's

Zaxby's Franchising, Inc., actively seeks highly qualified individuals be become licensees. Prior business experience, financial qualifications, motivation, team spirit and a track record of personal success are all important factors in our evaluation process. Prospective licensees must meet the following criteria to be considered: Collective net worth of at least $700,000, with liquid assets greater than $400,000 (liquidity being defined as cash or any asset that could be converted to cash within ten business days). Ability to satisfactorily pass background checks for the following: reasonable credit worthiness, no criminal convictions, no history of extensive litigation, and satisfactory motor vehicle report. Willingness of all investors to personally guarantee any obligations that are required under the license agreement. Willingness to make a commitment to this venture within 60 - 90 days of signing a license agreement. Belief that guest service is of critical importance in restaurant operations.
The Zaxby's Mission Statement - Consistently Create Encore Experiences That Enrich Lives One Person At A Time - recognizes the value of all individuals.

ZFI is committed to developing a diverse community of licensees and, in that regard, the Zaxby's franchise opportunity is open to all qualified applicants, regardless of age, gender, race or ethnicity.

The total investment necessary to begin operation of a Zaxby’s franchised business is $343,200 to $695,200. This includes $40,200 to $45,000 that must be paid to the franchisor or its affiliates. In addition, if you enter into a Multi-Restaurant Development Agreement to develop more than one Zaxby’s restaurant, you must pay the franchisor a fee of $17,500 for each Zaxby’s restaurant scheduled for development and subsequently must pay an additional $17,500 upon execution of the License Agreement for each Zaxby’s restaurant, which amounts are credited towards the initial franchise fee for each restaurant.

#148 in Franchise 500 for 2021.  Not in Franchise 500 for 2020.