IHOP Corp. Announces First Wave of New Franchise Development Agreements
GLENDALE, Calif., Aug 4, 2003 /PRNewswire-FirstCall via COMTEX/ -- IHOP Corp. (NYSE: IHP) today announced that it has reached agreements in principle and is currently finalizing new franchise development agreements with 37 of its existing single and multi-unit franchisees. These commitments, when signed, will yield the development of approximately 130 restaurants over the next five to 10 years in existing markets in more than 25 states throughout the U.S.
Julia A. Stewart, IHOP Corp. President and Chief Executive Officer, said, "It is exciting to see a great many of our existing franchisees decide to pursue self-financed development. It is a vote of confidence in our new operating model as well as an indication of the compelling return on investment that an IHOP franchised restaurant represents from those who know our business best -- our franchisees. These initial commitments are with some of our best operators who have a proven track record of success within the IHOP system."
Over the last several months, IHOP Corp. management and a group of prominent IHOP franchisees have collaborated to put together an attractive franchise development program aimed at meeting the needs of both franchisor and franchisees. IHOP expects to finalize these development agreements in the coming weeks and plans to provide additional detail on multi-unit franchise agreements, as appropriate. In addition to the 37 franchisees now moving forward with development agreements, IHOP has been approached by and is working with approximately 40 additional IHOP franchisees looking to develop an incremental 100 to 130 new restaurants as its development pipeline continues to grow.
Ms. Stewart said, "I would like to publicly acknowledge the work of several members of the IHOP Franchisee Board of Advisors who contributed to the design of our new multi-store and single-store franchise development offerings. I believe that their insights and perspectives have helped us to craft one of the most attractive franchise development offerings in the restaurant industry."
About IHOP Corp.
The IHOP family restaurant chain has been serving a wide variety of breakfast, lunch and dinner selections for 45 years. Offering more than 16 types of pancakes, as well as omelettes, breakfast specialties, burgers, chicken and steaks, IHOP's diverse menu appeals to people of all ages. IHOP restaurants are developed, operated and franchised by Glendale, California based IHOP Corp. As of June 30, 2003, there were 1,136 IHOP restaurants in 48 states and Canada. IHOP is publicly traded on the NYSE under the symbol "IHP." For more information, call the Company's headquarters at (818) 240-6055 or visit the Company's Website located at www.ihop.com .
There are forward-looking statements contained in this news release. They use such words as "may," "will," "expect," "believe," "plan," or other similar terminology. These statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results to be materially different than those expressed or implied in such statements. These factors include, but are not limited to: risks associated with the implementation of the Company's new strategic growth plan, the availability of suitable locations and terms of the sites designated for development; legislation and government regulation including the ability to obtain satisfactory regulatory approvals; conditions beyond IHOP's control such as weather, natural disasters or acts of war or terrorism; availability and cost of materials and labor; cost and availability of capital; competition; continuing acceptance of the International House of Pancakes brand and concepts by guests and franchisees; IHOP's overall marketing, operational and financial performance; economic and political conditions; adoption of new, or changes in, accounting policies and practices; and other factors discussed from time to time in IHOP's filings with the Securities and Exchange Commission. Forward-looking information is provided by IHOP pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of these factors. In addition, IHOP disclaims any intent or obligation to update these forward-looking statements.
SOURCE IHOP Corp.