Franchisees Commit to Develop as Many as 26 New IHOP Restaurants

IHOP Corp. (NYSE:IHP) today announced that it has secured additional Multi-Store Development Agreements during the second quarter 2006 for its franchisees to build as many as 26 new IHOP restaurants over the next 12 years. These agreements provide for the development of new IHOP restaurants in the states of Arkansas, Iowa, Minnesota, Montana, New York, North Dakota, Ohio, South Dakota and Vermont.

Rick Celio, IHOP's Vice President, Franchise & Development, said, "We are pleased to augment our robust pipeline with additional commitments for franchisees to develop as many as 26 new IHOP restaurants. During the second quarter 2006, we also reached a significant milestone by signing a franchise development agreement for the state of Vermont, which will provide for the first IHOP restaurant to be opened within the state in 2007. This move also marks the entrance of the IHOP brand into our 50th state - Vermont - where IHOP had not previously had a presence. We also continue to expand our international franchise development efforts, with additional agreements currently pending for IHOP restaurant development in Mexico, Canada and the U.S. Virgin Islands."

As of the end of the second quarter 2006, the Company's franchise pipeline included signed or optioned commitments for franchisees to develop a total of 393 new IHOP restaurants in the U.S. and Mexico over the next 13 years, with options extending until 2019. Currently, IHOP is finalizing legal agreements for additional franchise development that could add up to 130 more IHOP restaurants to its development pipeline, which would bring total signed, optioned and pending commitments to as many as 523 restaurants in the U.S., Canada, U.S. Virgin Islands and Mexico.

The following are details of Multi-Store Development Agreements signed during the second quarter 2006:

-- Scott Womack has agreed to develop 17 new IHOP restaurants over the next 12 years in the Dayton and Columbus, Ohio markets. This commitment builds upon Mr. Womack's previously signed Area Development Agreement to develop six IHOP restaurants in Northeastern Indiana over a six-year period, four of which have already been developed and opened. Mr. Womack has been an IHOP franchisee for 16 years, and currently operates six IHOP restaurants in Indiana.

-- Peter Handy has agreed to develop three new IHOP restaurants over the next six years within the state of Vermont and in an adjacent county in the state of New York. Mr. Handy is a franchisee new to the IHOP system, and possesses more than 20 years of experience in the hospitality industry with an expertise in hotel and restaurant operations.

-- Bill Billings has agreed to develop two new IHOP restaurants over the next three and a half years within Crawford and Pope Counties in the state of Arkansas. Mr. Billings is a franchisee new to the IHOP system, and possesses more than 20 years of foodservice and restaurant operating experience.

-- Terry Smith has agreed to develop two new IHOP restaurants over the next three years in states of North and South Dakota and surrounding trade areas reaching into Iowa, Minnesota and Montana. He also acquired an option exercisable by 2011 to develop two more IHOP restaurants in these same areas. Mr. Smith has been an IHOP franchisee for three years, and currently operates an IHOP restaurant in Fargo, North Dakota.

Reader Comments:

Be the first to leave a comment for this article