Denny's vs IHOP
Franchise Comparison 2026
Both Denny's and IHOP are full-service restaurants franchises. Denny's requires an investment of $1.6M – $3.1M while IHOP requires $2.7M – $4.2M. In terms of revenue, IHOP reports higher average unit revenue at $2.0M. On SBA loan performance, IHOP has a lower charge-off rate (7.3%) compared to Denny's (7.5%). FranchiseVerdict rates Denny's A (Top Quintile) and IHOP A (Top Quintile).
| Metric | Denny's | IHOP |
|---|---|---|
| Verdict Grade | ATop QuintileTop Quintile | ATop QuintileTop Quintile |
| Investment Range | $1.6M – $3.1M | $2.7M – $4.2M |
| Franchise Fee | $30K | $50K |
| Royalty Rate | 4.5% | 4.5% |
| Average Revenue (Item 19) | $1.9M | $2.0M |
| SBA Charge-Off Rate | 7.5% (283 loans) | 7.3% (299 loans) |
| Total Units | 1,334 | 1,693 |
| Unit Growth (YoY) | N/A | N/A |
| Year Began Franchising | 1963 | 2014 |
| FDD Year | 2025 | 2026 |
Investment Range
$1.6M – $3.1M
$2.7M – $4.2M
Franchise Fee
$30K
$50K
Royalty Rate
4.5%
4.5%
Average Revenue (Item 19)
$1.9M
$2.0M
SBA Charge-Off Rate
7.5% (283 loans)
7.3% (299 loans)
Total Units
1,334
1,693
Unit Growth (YoY)
N/A
N/A
Year Began Franchising
1963
2014
FDD Year
2025
2026