FDD Analysis 2025 FDD

Denny's Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from Denny's's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the Denny's FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$1,618,375 - $3,056,875
Franchise Fee$30,000

Investment Breakdown

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

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee4.5% of gross sales
Marketing/Advertising Fee6% of gross sales

Other Ongoing Fees

Brand Building Fund3%
Virtual Brand Offering Brand Building Fee3%
MenusVaries
Gift CardsVaries
New Restaurant Opening TrainingVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue—
Disclosure Year2025
Reporting Units—
Revenue VarianceHigh variance (wide performance range)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

1,334

Total Units

-73

Net Growth (YoY)

-5.2%

Growth Rate

Franchised Units1,273
Company-Owned Units61

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

Related Resources

Denny's Overview

Full franchise profile and details

Is Denny's Worth It?

Investment analysis and evaluation

Food & Beverage Revenue Rankings

Compare revenue across the industry

All Food & Beverage Franchises

Browse all brands in this industry

Get Complete FDD Access

Access full FDD data, financial performance details, franchisee contact lists, and comparison tools. Free for qualified franchise buyers.

Apply for Free Access