Denny's serves breakfast, lunch, dinner, and late-night options including pancakes, burgers, and classic American diner fare. The franchise provides a wide variety of comfort food in a casual family restaurant that's open 24 hours at most locations.
Key Insights
- Denny's began as a small coffee shop, growing over decades into a recognized family diner chain known for its approachable menu and round-the-clock availability, establishing a presence across North America.
- The franchise operates through a model that blends company-owned locations with a significant number of franchised restaurants, focusing on providing a consistent dining experience and leveraging an established brand identity.
- Denny's is situated within the broad casual dining and quick-service restaurant industry, a sector characterized by competition and evolving consumer preferences for convenience and value.
Franchise Fee and Costs to Open
Exploring the financial picture of Denny's gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $1,618,374 - $3,056,874, along with a franchise fee of $30,000 - $30,000.
Financial Performance and Revenue
Yearly gross sales of $1,805,776 and estimated earnings of $126,405 - $180,578 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 15.7-17.7 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Denny's provides comprehensive training for new franchisees. This initial program offers a foundational understanding of operations. The training program is typically two weeks in length and takes place at a Denny's training facility. Denny's also offers resources to support ongoing development and operational best practices.
Legal Considerations
Legal considerations for a Denny's franchisee are outlined in the Franchise Disclosure Document (FDD) and the Franchise Agreement. Note that this franchise discloses lawsuits and/or bankruptcy information in its FDD, which may impact your evaluation. Subscribe now to access more details and be sure to consult a qualified attorney before proceeding.
Challenges and Risks
Operating a Denny's franchise involves considerations such as navigating local market competition, which can influence customer traffic and pricing strategies. Managing the operational complexity of a 24/7 diner, including staffing and inventory control, requires dedicated attention. Furthermore, reliance on specific supply chains for a consistent menu offering is a factor to monitor for availability and cost fluctuations.
Franchise Datasheet
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