IHOP 2010 Annual Report Download - page 29

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agreements and 28 restaurants under international development agreements. The signed agreements
include options to build an additional 104 restaurants over the next 17 years.
In 2011, we expect to open a total of 55 to 65 new IHOP restaurants, including 50 to 55
restaurants under domestic franchise agreements and six to eight restaurants outside the United States.
The following table represents our IHOP restaurant development commitments, including options,
as of December 31, 2010:
Number of
Signed
Agreements 2015 and
Contractual Openings of Restaurants by Year at 12/31/10 2011 2012 2013 2014 thereafter Total
Single-store development agreements . . 11 11——— — 11
Non-traditional development
agreements .................... 1 1——— — 1
Multi-store development agreements . . . 67 57 40 29 24 38 188
Multi-store development options ...... 8 1 1 — 2 63 67
International territorial agreements .... 6 7243 12 28
International territorial options ....... 5 1132 30 37
Total .......................... 98 78 44 36 31 143 332
The actual number of openings in any period may differ from both our expectations and the
number of signed commitments. Historically, the actual number of restaurants developed in a particular
year has been less than the total number committed to be developed due to various factors including
weather-related delays, other construction delays, difficulties in obtaining timely regulatory approvals
and various economic factors.
Composition of Franchise System
The number of restaurants held by an individual franchisee ranges from one to 60 restaurants. The
table below sets forth information regarding the number of IHOP restaurants owned by domestic
franchisees as of December 31, 2010 as well as the total number of restaurants falling into each of the
listed ranges.
Franchisees Restaurants
Percent of Percent of
Number of Restaurants Held by Franchisee Number Total Number Total
One .............................. 188 51% 188 14%
Two to Five ......................... 124 34% 349 26%
Six to Ten .......................... 31 8% 235 18%
Eleven to Fifteen ..................... 12 3% 148 11%
Sixteen and over ..................... 15 4% 409 31%
Total(a) ............................ 370 100% 1,329 100%
(a) Percentages may not add due to rounding.
Menu
The IHOP menu offers a large selection of high-quality, moderately priced products designed to
appeal to a broad base of customers. These include a wide variety of pancakes, waffles, omelets and
breakfast specialties, chicken, steak, sandwiches, salads and lunch and dinner specialties. Most IHOP
restaurants offer special items for children and seniors at reduced prices. In recognition of local tastes,
IHOP restaurants typically offer a few regional specialties that complement the IHOP core menu. Our
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