How to Own a Franchise Restaurant
Become a Part of the IHOP Franchise Family
Considering owning a franchise, but have questions? This page will guide you through
the process of becoming a franchise owner, including tips on what to expect along the way. Briefly learn
the history and reasons to purchase a franchise, advantages of ownership, and how IHOP works with our
franchisees. You’ll discover how to own multiple franchises, read success stories, requirements,
some legal matters to be aware of.
Whether you're a first-time franchise owner or an experienced entrepreneur, this
guide should provide the answers you need to make informed decisions for those looking to own a
Understanding Franchise Ownership - A Guide by IHOP
Opening a new restaurant business often involves multiple factors, and sometimes mixed emotions. Some of
them are positive, and some of them are negative. What’s important is to understand your options
and think about if you want to start from the very beginning or if you want to franchise with a brand
with an excellent reputation, like IHOP. With this guide to understanding franchise ownership, you will
learn about processes and requirements specific to IHOP, and be better informed in making this
What Is Franchising and Why Is It Popular?
Franchising is a business model in which a company (the franchisor) grants the rights to its trademark,
products, and operating systems to an independent business owner (the franchisee) in exchange for an
initial fee and ongoing royalties. The franchisee operates under the franchisor’s brand and
receives support for marketing, training, and operational assistance, among other things.
Purchasing a franchise allows individuals to start their businesses with the support and guidance of an
established brand. The franchisor benefits from expanding its business without having to open and manage
each location themselves.
The idea of franchising has been a popular business model for centuries. It’s more than just an
agreement between two parties; it’s a relationship. Franchisors must ensure that franchisees are
getting everything they need to succeed. It’s mutually beneficial when everyone succeeds in
franchising. IHOP opened its first restaurant in 1958 and started franchising in 1960 !
Owning a Franchise - The Benefit
There are multiple benefits of owning a franchise. Top franchised brands generally enjoy high brand
recognition, resulting in increased customer loyalty and repeat business for franchisees. This consistent
revenue stream contributes to a stable financial position and positive cash flow for franchise owners over
an extended period.
In addition, owning a franchise provides the reassurance of being part of a larger organization, with all
efforts contributing to a shared purpose. Furthermore, franchise ownership is ideal for fostering networking
opportunities and social advantages. It presents an excellent opportunity for new entrepreneurs to establish
relationships within their local community.
Expanding Your Business: Maximizing Growth With Multi-Franchise Ownership
For entrepreneurs seeking to grow their businesses, multi-franchise ownership is an attractive option that
can offer several benefits. By owning multiple franchises, you can take advantage of economies of scale,
shared resources, and additional revenue streams.
The Benefits of Owning Multiple IHOP Franchises
Multi-franchise ownership with IHOP provides financial security, scalability, and the potential for business
growth. By leveraging the established brand recognition of IHOP, you can improve marketability and attract
loyal customers across multiple locations.
However, before pursuing multi-franchise ownership, conducting thorough research on each franchise is crucial
and ensuring they align with your overall business plan. You must also be aware of legal or regulatory
restrictions and comply fully with franchisor agreements.
Criteria for Multi-Franchise Ownership With IHOP
Adequate financing and capital, low overhead costs, solid business acumen, and franchising fundamentals are
essential for successful multi-franchise ownership with any franchise, including IHOP.
Managing multiple franchises can be complicated, so having the necessary skills to manage teams, budgets, and
expectations in each location is crucial.
With the right strategy and approach, owning and operating multiple IHOP franchises can maximize profits
allowing you to take your business to the next level.
Owning a Franchise: Requirements, Risks and Rewards
Franchise ownership can be an exciting opportunity for entrepreneurs, but it’s crucial to understand the financial
and legal requirements and the risks and rewards involved.
Before becoming a franchisee, franchisors may require a legal agreement that outlines the owner’s rights and
obligations. It’s essential to consult with an experienced attorney before signing contracts to ensure complete
comprehension of the agreement’s terms and conditions.
Prospective franchisees must also have the capital to cover the initial purchase costs, operational expenses, and any
unexpected costs (which can range up to millions of dollars), depending on the franchise type. They also need
business intelligence to assess the potential investment’s profitability, considering factors such as competition,
industry regulations, and the cost of goods or services.
Create a Business Plan - The Winning Way
If you’re interested in owning a franchise, starting by thoroughly researching potential
opportunities and developing an extensive business plan outlining your goals, strategies, and objectives
Your business plan should consider important factors such as the demographics of your current and
potential customer base and key financial projections, including projected sales, profits, and
investment capital. Understanding the legal requirements for owning a franchise in your chosen area is
Once you have a solid plan, you must start securing funding and attracting investors who share your
The Most Important Document: Franchise Agreement
One of the most critical documents for franchise owners is the Franchise Agreement, which sets out the
commitments and rights of both parties involved in the business relationship. The agreement typically
specifies details such as franchise fees paid to the franchisor, franchise terms, quality standards that
franchisees need to follow, and operational restrictions. Additional provisions may surround customer
referrals, royalty fees, and trademark licenses.
Before signing the agreement, you should understand your franchisee rights and obtain legal counsel.
What To Choose: Franchise or Corporate Ownership
Choosing between franchise and corporate ownership requires understanding the differences between the two
While owning a corporate business may offer more freedom regarding operations and pricing, owning a
franchise comes with certain obligations that must be followed (as outlined in the franchise agreement).
The benefits of franchise ownership include access to comprehensive business training, franchisor
marketing support, and a well-established customer base.
Expand Your Business Across Borders: Global Franchising
Expanding your business globally through franchising can be lucrative, but it requires careful planning
and research. Companies interested in global franchising typically have specific requirements such as
capital investment, business and retail experience, and product or service training. In exchange,
though, franchisors offer access to trademarks, marketing materials, and licensed products.
For a successful global venture, potential franchisees should research the parent company, create a solid
business plan, develop market entry strategies to fit with the franchise’s location and have
Your global franchise can begin if these steps are followed and agreed upon with the franchisor.