6/10

Franchimp Summary Rating

6 /10
Lower than 48% of peers
2 /10
Higher than 82% of peers

Franchise Summary

Description
Denny's restaurants are full service, family-style restaurants that offer and serve a wide variety of food. Denny's restaurants offer a casual dining atmosphere and moderately-priced food designed to appeal to a broad spectrum of customers. We have developed and own a comprehensive system for developing and operating Denny's restaurants, which includes trademarks (Marks), building designs and layouts, equipment, ingredients, recipes and specifications for authorized food products, training, methods of inventory control as well as operational and business stand-ards and policies. As part of the full-service brand, we have introduced variants to the business model which include online ordering for customer pick-up, third party delivery, and in-restaurant ordering through devices in addition to servers.
Company Background
Denny's is a full-service, family-style restaurant that offers and serves a wide variety of food products. Denny's restaurants offer a casual dining atmosphere with moderately priced food designed to appeal to a broad spectrum of customers. The company has been in business for more than 50 years and operates 1,600 franchised, licensed, and company-owned restaurants around the world.
Franchise Opportunity
People love our food, but they don't always want to sit down for a full-service meal. We're the perfect solution when you need a quick bite and some time on your feet. Whether it's breakfast, lunch or dinner - we've got something for everyone. Denny's restaurants are open all day long so you can grab an amazing breakfast, lunch or dinner whenever you need it most! Our menu is packed with classic diner favorites like pancakes, omelettes and burgers as well as new creations that have become famous in their own right like Moons Over My Hammy(R) and The Big Slab(R) of Bacon. And if that wasn't enough to get your mouth watering - we also serve up delicious milkshakes and malts made with real ice cream! Find out more about us at www.dennys.com/about-us/.
Corporate Structure
DFO, LLC’s principal business address is 203 East Main Street, Spartanburg, South Carolina 29319.

Earnings Transparency

10 /10
This Franchise discloses far more about the financial performance of their franchisees compared to other franchises in the same industry.

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Financial Performance of "Standard" Units

Average Revenue Per Unit

Compared vs. Restaurants (Sit-Down) Industry

$1,639,549 / unit

Franchise Type: Standard

Average Revenue During 2021

$1,639,549
$628,879
Industry Low
$3,609,791
Industry High

Franchisee Attrition

6 /10
This franchise's rate of attrition in 2013 of 2.18% was Slightly Lower than the 6% in the Restaurants (Sit-Down) industry. Generally speaking, a higher rate of attrition represents a less stable franchise system and a lower rate of attrition indicates a more successful system
What's Included in franchise attrition?
We define the franchisee attrition rate as the sum of terminations, re-acquisitions by franchisor, non-renewals, and ceased operations, divided by the number of outlest at the start of the year. It is a strong indicator of the strength of the underlying operating model

Franchise Types Available

# Type Investment Fees

Employee Contact Database

# Name Position Phone Number Email Address

Distribution of Denny's Franchisees

Denny's Franchise System Development in 2024

FAQ

How much investment do I need to start my own Denny's business?
Franchisees typically require at least $1,618,375 to $3,056,875 investment to get their Denny's business started
What are the initial franchise fees for Denny's?
Franchisees typically need to pay at least $30,000 in fees directly to Denny's in order to earn the right to launch their business
How much money can I make with a Denny's franchise? What are the average revenues for a typical Denny's business?
We estimate that the average revenue of an individual Denny's unit is approximately $1,639,549. We based this on Item 19 in franchise disclosure document
How long do I need to commit to running a Denny's unit? What is my contractual commitment?
The standard length for an initial franchise contract is 10 years. Renewals are also generally 10 years

Accessibility

2 /10
The Franchisor's investment costs ranges from $1,618,374 to $3,056,874 which is Much Higher than the $0 to $0 average in the Restaurants (Sit-Down) industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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