About Denny's Franchise
Denny's is one of America's most iconic family dining restaurant chains, serving breakfast, lunch, and dinner around the clock at locations nationwide.
The brand has been franchising since 1963 under Denny's Corporation, building a legacy as the go to destination for classic American comfort food at any hour of the day.
The franchise fee is $30,000.
Denny's Franchise Cost & Fees
Minimum Investment
$305K
Average Investment
$1.3M
Maximum Investment
$2.3M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 4.5% - 7% of your Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% - 3.25% of your Gross Sales (Brand Building Fund); As determined by the Coop (Local Advertising Coop Fee) | National brand fund |
| Total Investment Range | $305,000 – $2,326,539.75 | Includes build-out, inventory, working capital |
The investment range of $305K–$2.3M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4.5% - 7% of your Gross Sales) and marketing fee (3% - 3.25% of your Gross Sales (Brand Building Fund); As determined by the Coop (Local Advertising Coop Fee)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Site Improvements | $0 | $300,000 |
| Building and Improvements (Heritage 2.0) | $800,000 | $1,000,000 |
| Architectural Design and Engineering (Heritage 2.0) | $30,000 | $60,000 |
| Equipment, Fixtures and Furnishings (Heritage 2.0) | $350,000 | $450,000 |
| Signs (Heritage 2.0) | $40,000 | $90,000 |
| Standard Enterprise Technology Platform (Heritage 2.0) | $25,000 | $40,000 |
| Opening Inventory and Supplies (Heritage 2.0) | $20,000 | $30,000 |
| Opening Advertising (Heritage 2.0) | $3,000 | $5,000 |
| Opening Menus (Heritage 2.0) | $340 | $465 |
| Opening Gift Cards (Heritage 2.0) | $74.75 | $74.75 |
| New Restaurant Opening Training Team (Heritage 2.0) | $0 | $36,000 |
| Security Deposits (Heritage 2.0) | $10,000 | $15,000 |
| Insurance (Heritage 2.0) | $15,000 | $20,000 |
| Soft Costs (Permits, Survey, Inspections) (Heritage 2.0) | $5,000 | $100,000 |
| Additional Funds - 3 months (Heritage 2.0) | $100,000 | $150,000 |
| Initial Franchise Fee (The Den) | $10,000 | $10,000 |
| Building and Improvements (The Den) | $40,000 | $250,000 |
| Architectural Design (The Den) | $15,000 | $40,000 |
| Equipment, Fixtures and Furnishings (The Den) | $75,000 | $195,000 |
| Signs (The Den) | $5,000 | $20,000 |
| Standard Enterprise Technology Platform (The Den) | $20,000 | $40,000 |
| Opening Inventory and Supplies (The Den) | $7,000 | $20,000 |
| Opening Advertising (The Den) | $3,000 | $5,000 |
| New Restaurant Opening Training Team (The Den) | $0 | $36,000 |
| Security Deposits (The Den) | $10,000 | $15,000 |
| Insurance (The Den) | $15,000 | $20,000 |
| Soft Costs (Permits, Inspections) (The Den) | $5,000 | $25,000 |
| Additional Funds - 3 months (The Den) | $100,000 | $150,000 |
| Initial Franchise Fee (Travel Center) | $30,000 | $30,000 |
| Building and Improvements (Travel Center) | $405,000 | $700,000 |
| Architectural Design and Engineering (Travel Center) | $20,000 | $50,000 |
| Equipment, Fixtures and Furnishings (Travel Center) | $350,000 | $450,000 |
| Signs (Travel Center) | $20,000 | $90,000 |
| Restaurant Technology Systems (Travel Center) | $25,000 | $40,000 |
| Opening Inventory and Supplies (Travel Center) | $20,000 | $30,000 |
| Opening Advertising (Travel Center) | $3,000 | $5,000 |
| Opening Menus (Travel Center) | $340 | $465 |
| Opening Gift Cards (Travel Center) | $74.75 | $74.75 |
| New Restaurant Opening Training Team (Travel Center) | $0 | $36,000 |
| Security Deposits (Travel Center) | $10,000 | $15,000 |
| Insurance (Travel Center) | $15,000 | $20,000 |
| Soft Costs (Permits, Survey, Inspections) (Travel Center) | $5,000 | $75,000 |
| Additional Funds - 3 months (Travel Center) | $100,000 | $150,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 per restaurant, and $7,500 for every restaurant which changes owners past its remodel due date |
| Renewal Fee | $10,000 or $30,000 (Successor Franchise Agreement) |
| Technology Fee | To be determined by Company and may vary by location (Standard Enterprise Technology Platform Support); $55 per week (Xenial); $45 per week (DINE); $60 annually (data extraction and software delivery); $22 per device (endpoint protection); $125 per month (Xenial software subscription); $33.33 per month (DINE software subscription); $28 monthly (Verifone customer-facing payment terminals); $50 Activation, $25 Monthly, $0.25 - $0.37 per transaction, $1.65 for delivery (Denny's on Demand); $10 per month, $0.25 per transaction (Virtual Brand Offering) |
| Audit Fee | Cost of audit |
| Menus | $340 to $465 |
| Gift Cards | $74.75 |
| Additional Management Training | None |
| New Restaurant Opening Training | $0 to $36,000 |
| Insurance | Actual cost |
| Reimbursement for Products, Services, etc. | Actual cost |
| Testing | Actual cost |
| Correction of Deficiency or Unsatisfactory Condition | Actual cost |
| Rent | Varies depending on type of lease |
| Sublease | 75% of amount by which sublease rent paid to you exceeds rent you pay to us |
| Interest | Lesser of 15% per year or maximum legal rate |
| Costs and Attorneys' Fees | Actual cost |
| Indemnification | Actual cost |
| Credit Card Fees | As determined by third party card processors |
| SCOC Surcharge | $0.01 per case |
| iLumen – aggregation of franchise P&Ls | $200 Annual |
| CREATE – graphic design service | As incurred |
| Call Center Ordering | As incurred |
| Cost to indemnify us | As incurred |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 50 days (Franchisee Manager-in-Training); 21 days (NRO Manager); 18 days (NRO Trainers) |
| Training Location | Approved STAR Training Restaurants (FMIT); Your new Restaurant (NRO); On-line (Food Safety Training) |
| Additional Training | The franchisor may recommend refresher or additional courses of training for Managing Owners, Designated Operators, restaurant managers, or other employees, which franchisees are responsible for ensuring compliance with. Optional training programs and seminars may also be offered. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive (standard franchise agreement); Exclusive (FLIP and H2.0-DA development agreements) |
| Exclusive Territory | No |
| Territory Size | May range from an area within a radius of a specified intersection to an entire DMA or larger areas. |
| Description | For standard franchise agreements, franchisees do not receive an exclusive territory or territorial rights, and the franchisor or its affiliates may open or franchise new restaurants nearby. For FLIP and H2.0-DA development agreements, exclusive development rights are granted within a designated geographical area, but the franchisor retains the right to license others to operate existing, relocated, reopened, or non-traditional Denny's restaurants within or near the territory, and to acquire and operate restaurants itself. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | No right or option to renew; Successor Franchise Agreements (10 or 20 years) may be offered at franchisor's discretion. |
| Renewal Conditions | Franchisor may elect, in its sole discretion, to offer a new franchise if the franchisee is in good standing under all agreements. |
| Transfer Fee | $5,000 per restaurant, and $7,500 for every restaurant which changes owners past its remodel due date. |
| Transfer Conditions | Subject to franchisor's prior written consent, which may be withheld for any reason. Conditions include assignee's experience, financial responsibility, no felony conviction, execution of standard assignment documentation or then-current franchise agreement, refurbishment/remodeling, training, full performance of franchisee's obligations, payment of all outstanding obligations, and execution of a general release of claims. |
| Termination for Cause | Franchisor may terminate for various curable defaults (e.g., failure to pay fees within 5 days, failure to cure loan default within 10 days, repeated non-compliance) or non-curable defaults (e.g., failure to comply with law, abandonment, bankruptcy, material misrepresentation, harmful conduct, felony conviction, unauthorized assignment, failure to maintain insurance). |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, franchisees and guarantors cannot directly or indirectly own, operate, control, or have a financial interest in any competing coffee shop or family-style restaurant business in the United States. After termination or expiration, a non-compete applies for 2 years within a 15-mile radius of the Restaurant, prohibiting involvement in substantially similar businesses. This also applies to spouses and certain children. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | At least one individual who signs the Franchise Agreement, or a Managing Owner (owner/guarantor) or Designated Operator (qualified operator), must participate personally in the direct, on-premises operation of the Denny's Restaurant. This person must be approved by the franchisor, have a significant beneficial equity interest (or approved employment arrangement for Designated Operator), devote sufficient/full time and best efforts to supervision, and permanently reside near the Restaurant. |
| Required Suppliers | Approved vendors for goods, services, supplies, fixtures, equipment, and inventory. Specifically, MBM Corporation, dba McLane Foodservice, is the approved national distributor for most products and supplies. Franchisees are also required to use the Standard Enterprise Technology Platform support and credit card processing services. |
| Supply Restrictions | Franchisees must operate in strict conformity with the franchisor's methods, standards, and specifications and must purchase goods, services, supplies, fixtures, equipment, and inventory only from approved vendors. Any unapproved vendor must be submitted for approval, which may involve facility inspections and product testing. |
| Franchisor Revenue from Suppliers | The franchisor does not receive any direct revenue from third-party vendors as a result of required purchases or leases. Any rebates received related to purchases by franchise stores go to the general Brand Building Fund and are not recognized as income on the franchisor's financial statements. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor occasionally offers to finance the purchase of POS systems and other items introduced into the Denny’s System. In limited circumstances, the franchisor's affiliate, DI, may finance a portion of the purchase price of a former company restaurant. This financing can cover up to 40% of the purchase price for a term of up to 5 years, with fixed interest rates determined at the time of funding, being the greater of 9% or the current market rate for small business loans. A security interest in the financed property and a personal guaranty from owners are required. |
Denny's Franchise Earnings — Item 19
Average Revenue
$1.6M
Median Revenue
$1.5M
Revenue Range
$436K – $4.3M
Sample Size
1362 units
Past financial performance does not guarantee future results. Individual results will vary.
Denny's Litigation & Risk Flags
Clean Litigation RecordDenny's has no pending litigation actions listed in their FDD.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Denny's System Growth
Total Units
1487
Franchised
1422
Company-Owned
65
Denny's currently operates 1422 franchised locations and 65 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 121 | 35 | 1491 |
| 2020 | 12 | 64 | 1439 |
| 2021 | 12 | 29 | 1422 |
Transfers: 7 | Closures: 29
State Registrations
Registered in 17 states: CA, MD, HI, MI, IL, MN, IN, NE, NY, SD, ND, TX, OR, VA, RI, WA, WI
Franchisor Financials (Item 21)
Revenue
$398.2M
Denny's Franchise — FAQ
The total investment to open a Denny's franchise ranges from $305,000 to $2,326,539.75, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Denny's charges a royalty fee of 4.5% - 7% of your Gross Sales of gross sales, plus a 3% - 3.25% of your Gross Sales (Brand Building Fund); As determined by the Coop (Local Advertising Coop Fee) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Denny's Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Denny's to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Denny's franchise owners report average revenue of $1.6M and median revenue of $1.5M. This is based on a sample of 1362 units. Past performance does not guarantee future results.
Denny's has been franchising since 1963. The FDD shows an investment range of $305,000-$2,326,539.75, a 4.5% - 7% of your Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $305,000 to $2,326,539.75 depending on location size and market. A minimum of $100,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Denny's and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Denny's or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com