Denny's Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$30,000
Investment required
$305,000 - $2,327,000
Royalty fee
4.5% to 7%

Denny's: A Pioneer in American Diner Culture

Denny's, a renowned American diner-style restaurant chain, is celebrated for its 24/7 service and classic American comfort food, with a special emphasis on its signature breakfasts. Established as Danny's Donuts in Lakewood, California, in 1953, the brand evolved into Denny's Diner, broadening its menu to include a variety of meals.

The franchise embarked on its expansion journey in 1963, quickly becoming an integral part of the American dining landscape. With its headquarters in Spartanburg, South Carolina, Denny's embodies a strong American heritage.

Denny's international venture began in December 1982 with the launch of its first restaurant in Australia, showcasing the brand's early aspirations for global presence. Over the years, Denny's has innovated with concepts like the Denny's Classic Diner in the 1990s, designed to capture the nostalgic 1950s diner ambiance, and formed strategic alliances, such as the one with Pilot Flying J in 2010, to strengthen its U.S. footprint.

Denny's dedication to high standards is evident in its track record of minimal health inspection issues and its commitment to animal welfare, including the shift to cage-free eggs. These initiatives highlight Denny's focus on quality, customer satisfaction, and aligning with modern consumer values.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Denny's offers 3 types of franchises:

Type of Denny’s Facility Initial Investment
Denny’s Heritage 2.0 facility $1,428,424.75 to $2,326,574.75
Nontraditional Denny’s $305,000 to $826,000
Denny’s within a Travel Center $1,003,414.75 to $1,681,574.75

We are summarizing below the main costs associated with opening a Denny’s Heritage 2.0 facility franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Denny’s Heritage 2.0 facility

Type of Expenditure Amount
Initial Franchise Fee $30,000
Site Improvements $0 - $300,000
Building and Improvements $800,000 - $1,000,000
Architectural Design and Engineering $30,000 - $60,000
Equipment, Fixtures and Furnishings $350,000 - $450,000
Signs $40,000 - $90,000
Standard Enterprise Technology Platform $25,000 - $40,000
Opening Inventory and Supplies $20,000 - $30,000
Opening Advertising $3,000 - $5,000
Opening Menus $340 - $500
Opening Gift Cards $74.75
New Restaurant Opening Training Team $0 - $36,000
Security Deposits $10,000 - $15,000
Insurance $15,000 - $20,000
Soft Costs (Permits, Survey, Inspections) $5,000 - $100,000
Additional Funds - 3 months $100,000 - $150,000
TOTAL ESTIMATED INITIAL INVESTMENT (exclusive of land) $1,428,424.75 - $2,326,574.75

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Number of units

2023
Franchised units

1,466

1,428

1,412

Company-owned units

66

65

65

Total units

1,532

1,493

1,477

Franchise Disclosure Document

Training 

Denny's offers an extensive training program for its franchisees. Here’s an overview of the training process:

Before launching the restaurant, the franchisee, along with their Managing Owner or Designated Operator, is required to attend and successfully complete Denny's initial training program.

This program encompasses several key components, including the Franchise Manager-in-Training program and Food Safety Training and Certification.

Following the initial training, all individuals employed by the franchisee as a Managing Owner, Designated Operator, or restaurant manager must participate in and complete further training sessions as advised by the company.

Territory Protection

Under the franchise agreement, aside from the right to operate a Denny’s restaurant at the specified premises, no exclusive territory or territorial rights are granted.

There are no limitations on Denny's or its affiliates from soliciting or accepting orders from customers within your trade area. You must operate the restaurant solely at the location approved by Denny's.

You are prohibited from operating the restaurant or offering any products or services from any location other than the approved one. However, off-site sales may be conducted within a designated area if Denny's grants approval or requires it.

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