Denny’s
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For more than 50 years Denny’s has provided the quintessential family dining experience with modestly priced meals. Denny’s is committed to being the go-to restaurant for America’s best breakfast and prides itself on continuously pursuing innovation to enhance its quality menu and service platform. In addition to its reputation for its breakfast items and late-night dining, Denny’s has also seen substantial success with its updated lunch and dinner menus that include a variety of health-conscious choices.
With more than 1,600 restaurants worldwide and annual sales of more than $2 billion, Denny’s boasts nearly 100% brand recognition as one of the largest full-service family restaurant chains in the United States.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
1,149 |
1,241 |
1,339 |
| | % Change | -- |
8.0% |
7.9% |
| | Company-Owned |
314 |
233 |
232 |
| | % Change | -- |
-25.8% |
-.4% |
| | Total |
1,463 |
1,472 |
1,571 |
| | % Change | -- |
0.8% |
6.6% |
| | Franchised as % of Total |
78.5% |
84.2% |
85.2% |
Investment Required
The fee for a Denny’s franchise is $40,000.
Denny’s provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee | $0 | $40,000 |
| | Building and Improvements | $650,000 | $1,400,000 |
| | Architectural Design | $13,000 | $40,000 |
| | Equipment, Fixtures, Furnishings | $350,000 | $450,000 |
| | Signage | $15,000 | $90,000 |
| | D.I.N.E POS Systems | $20,000 | $40,000 |
| | Opening Costs | $20,505.50 | $51,115.50 |
| | Security Deposits | $10,000 | $15,000 |
| | Insurance | $15,000 | $20,000 |
| | Permits | $5,000 | $100,000 |
| |
Additional Funds (3 Months) | $80,000 | $150,000 |
| |
Total Initial Investment (does not include land) |
$1,178,505.50 |
$2,396,115.50 |
Ongoing Expenses
Denny’s franchisees pay royalties equal to 4% of gross sales and advertising fees equal to 3% or 4% of gross sales. Other fees payable by the franchisee include a local advertising co-op fee and semi-annual menu costs.
What You Get—Training and Support
Denny’s franchisees spend 10 to 13 weeks at a nearby certified training restaurant for hands-on training, with complete instruction in all aspects of restaurant operation, from management to food safety.
Denny’s commitment to franchisee support extends to field-based real estate assistance, an industry-leading supply chain to deliver high-quality food, and ongoing advertising and field support. Additionally, Denny’s continually seeks out new and innovative ways to make operations more efficient and help franchisees operate more effectively, including a recently implemented program designed to improve table turn in high-revenue day parts by using technology and operational systems.
Territory
Denny’s grants nonexclusive territories. Denny’s may grant exclusive territories only through its Market Growth Incentive Plan.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Top 100 Franchises publication.
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