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- 2022 Franchise 500 Rank
#119 Ranked #83 last year
- Initial investment
$1.4M - $2.3M
- Units as of 2022
1,631 4% over 3 years
Here’s what you need to know if you’re interested in opening a Denny's franchise.
In 1953, the first Denny's Inc. restaurant opened in Lakewood, California. Hungry customers were attracted to its delicious meals and quality dining experience. By 1963, Denny's Inc. started franchising, expanding the brand into one of America’s largest and most popular full-service restaurants. As a franchisee, you’ll be part of a global brand that has brought its presence to places such as Canada, New Zealand, Mexico, and the UAE, among others. Denny’s Inc. serves millions of customers each day.
With its family-style food service, Denny's Inc. seeks to provide clients with a casual dining atmosphere where they can enjoy affordable meals. Denny's Inc. focus on a broad customer segment and its strategy to rely on the interstate highway system has made it one of the most recognizable restaurant chains in the United States.
Why You May Want to Start a Denny's Inc. Franchise
In a world where fast-food restaurants dominate, customers always seek a spot to take loved ones and enjoy high-quality food. Denny's Inc. offers full table service, providing tasty dishes with few frozen or processed ingredients. By serving customers directly at the table, Denny's Inc. offers customers one of the best opportunities to socialize while dining.
Starting a Denny's Inc. franchise may be a mindful move for a potential franchisee who appreciates the value that ambiance, good food, and quality service add to the dining experience. With its moderately priced menu, customers visit Denny's Inc. to enjoy the classic cuisine, signature sauces, toppings, and dips that they may not be able to find elsewhere.
With a Denny's Inc. franchise, you may be able to help families experience dining bliss and comfort, and along the way, you may have the possibility to grow.
What Might Make a Denny's Inc. Franchise a Good Choice?
Potential franchisees often ask, “How much does it cost to own a franchise?” Well, with a Denny's Inc. franchise as an example, you may be able to realize that the costs are manageable, especially if you factor in third-party financing options, which include options to help cover the franchise fee, startup cost, equipment, and inventory.
To be part of the Denny's Inc. team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
While running a restaurant franchise requires background experience, Denny's Inc. programs can help you grow. You may unlock your potential while enjoying a Grand Slam stack of hot pancakes.
How To Open a Denny's Inc. Franchise
To get started with opening a Denny's Inc. franchise, you should first submit an inquiry form.
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. Speak to existing franchisees and ask questions directed to the Denny's Inc. team. If your net worth and available liquid capital match the brand’s requirements, you may qualify to open a Denny's Inc. franchise, and you can get started with an initial investment and relevant training.
Cook up a welcoming community environment with your own Denny's Inc. franchise!
- Franchising Since
- 1963 (59 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees worldwide.
- # of Units
- 1,631 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Denny's franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
- $10,000 - $30,000
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $1,428,425 - $2,326,540
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 20 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Denny's has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 91 hours
- Classroom Training
- 16 hours
- Additional Training
- At existing Denny's restaurants
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like Denny's? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Denny's landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Denny's ranked on other franchise lists? Find out below.
Ranked #119 in 2022
Franchise 500 Ranking
Ranked #74 in 2022
Top Global Franchises
Ranked #1 in Miscellaneous Full-Service Restaurants in 2021
Best of the Best
Ranked #1 in Miscellaneous Full-Service Restaurants in 2022
Top Food Franchises
Ranked #1 in 2022
#1 in Miscellaneous Full-Service Restaurants Category
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