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How Much Does it Cost to Start a Denny's Franchise?

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Everything You Need to Know about Denny's Inc

It's no secret that Americans love to eat. There are more restaurants today than at any point in our history. This is partly due to the human impulse to turn mealtime into an opportunity to socialize. At the same time, we're busier than ever, causing many people to turn to restaurants in lieu of preparing their own food.

Another defining characteristic of the average diner is the wish to choose restaurants they know and trust. If you're going to spend money on a meal out, you want some assurance it will be a pleasing experience. This helps make franchise restaurants the most popular option.

The Denny's franchise fits all of these criteria, as well as having a reputation for value – good service and tasty food at a fair price. Denny's is one of the top franchises, and the company has developed a terrific business model for its franchise owners. Before purchasing, though, you need to consider the full cost and develop a strong understanding of what to expect.

Pros of the Denny's Inc. Franchise

With over six decades of experience providing good food at a fair price, Denny's has perfected the franchise experience. It's a well-known brand with over 1,700 locations across the country.

Thanks to 90 percent of its locations operating as franchises, the company has a strong franchise program offering investors a high level of support. The franchise team provides advice, training, and support, and you get the advantage of a business with instant brand recognition.

Points to Consider Before Buying a Denny's Franchise

Investing in a Denny's franchise represents a significant financial investment; the company suggests investors have at least $500,000 in liquid capital and a net worth of at least $1 million.

Denny's Inc. provides management training to franchisees. In this case, the Designated Operator or Managing Owner, as well as their managers, are qualified for training and assistance, if applicable.

The duration of the franchise term agreement is for at least 20 years and/or lease term. However, a renewal option is not available, so it's a long term, one-time contract.

Price Comparison of Denny's Inc. Franchises

To open a Denny's, you need an average initial investment of between $1 and $2.5 million. The Denny's Inc. franchise opportunities come with different fees, which one must understand before investing in any of their restaurants.

  • D4200 Facility, without the land investment, requires a $1.2 to $2.5 million liquid cash investment
  • Denny's Heritage Prototype with no land investment ranges between $1 and $2 million
  • The Den by Denny's ranges between $500,000 and $1 million
  • Denny's Travel Center package has a price range between $1 and $1.5 million

These costs include a variety of items.

  • The franchise fee is $40,000
  • Buildings and improvement costs range between $650,000 and $1.4 million
  • Furnishings, fixtures, and equipment cost around $350,000 to $450,000
  • Advertising costs around $3,000-$5,000
  • Training costs up to $18,000
  • Security deposits cost between $10,000 and $15,000
  • Insurance costs between $15,000 and $20,000
  • Permits cost between $5,000 and $100,000
  • Opening supplies run between $15,000 and $30,000

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