Food & Beverage FDD Analyzed

Denny's

DFO, LLC

Spartanburg, SC Website FDD: May 2, 2025
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Investment Range

$1,618,375 - $3,056,875

Franchise Fee

$30,000

Royalty

4.5%

Marketing Fee

3%

Total Units

1,334

Median Revenue

AI Summary

Denny's is a highly established, legacy full-service restaurant franchise operating for 66 years under DFO, LLC, offering traditional dining and modern formats like "Diner 2.0" and virtual brands. Initial investment requires a non-refundable $30,000 franchise fee for a traditional unit, alongside significant ongoing weekly fees including a Royalty (4.5% to 7% of Gross Sales) and a Brand Building Fund contribution (3% to 3.25% of Gross Sales). While the management team is highly experienced, prospective franchisees should be aware of the pending material litigation involving a contract dispute with an existing franchisee.

Unit Growth

Last 5 years

2022

1,445

-2.6%

2023

1,407

-5.2%

2024

1,334

Initial Investment Breakdown

CategoryLowHigh
Initial Franchise Fee²$30,000$30,000
Site Improvements$50,000$500,000
Building and Improvements³$950,000$1,500,000
Architectural Design and Engineering⁴$30,000$60,000
Equipment, Fixtures and Furnishings$350,000$450,000
+ 11 more categories (apply to see all)
TOTAL INVESTMENT$1,618,375$3,056,875

Financial Performance Data

Access detailed revenue metrics, expense breakdowns, and profitability data from the Item 19 Financial Performance Representation.

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Franchisee Contact Directory

55

Connect directly with existing franchise owners to learn about their experience, get real insights, and validate your decision.

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Is Denny's a Good Investment?

Based on the FDD data, here are key factors to consider when evaluating a Denny's franchise opportunity:

Potential Advantages

  • Established brand with 1,334+ locations nationwide
  • Competitive royalty fee of 4.5%
  • Financial Performance Representation (Item 19) available for review

Considerations

  • Declining unit count may indicate market challenges
  • Litigation history disclosed in FDD (review Item 3 carefully)
  • Bankruptcy history disclosed in FDD (review Item 4 carefully)
  • Higher initial investment requires significant capital

Disclaimer: This analysis is based on publicly available FDD data and should not be considered financial advice. Always consult with a franchise attorney and accountant before making any investment decision.

Frequently Asked Questions About Denny's

How much does a Denny's franchise cost?

The total initial investment for a Denny's franchise ranges from $1,618,375 to $3,056,875. This includes the franchise fee, equipment, inventory, real estate, and other startup costs as disclosed in the FDD.

What is the Denny's franchise fee?

The initial franchise fee for Denny's ranges from $30,000 to $30,000.

What are the ongoing fees for a Denny's franchise?

Denny's franchisees pay a 4.5% royalty fee and a 3% marketing/advertising fee on an ongoing basis.

How many Denny's franchise locations are there?

Denny's currently operates 1,334 franchise locations. This includes both franchised and company-owned units.

Quick Facts

Litigation Disclosed
Bankruptcy Disclosed
Protected Territory Yes
Item 19 (FPR) Available
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