Denny's Franchise FDD, Costs & Fees (2025)

Denny's is a casual dining franchise known for its 24/7 availability and a menu featuring breakfast, lunch, and dinner options, providing a wide range of classic American comfort food.

Denny's, a renowned American diner-style restaurant chain, is celebrated for its 24/7 service and classic American comfort food, with a special emphasis on its signature breakfasts. Established as Danny's Donuts in Lakewood, California, in 1953, the brand evolved into Denny's Diner, broadening its menu to include a variety of meals.

The franchise embarked on its expansion journey in 1963, quickly becoming an integral part of the American dining landscape. With its headquarters in Spartanburg, South Carolina, Denny's embodies a strong American heritage.

Denny's international venture began in December 1982 with the launch of its first restaurant in Australia, showcasing the brand's early aspirations for global presence. Over the years, Denny's has innovated with concepts like the Denny's Classic Diner in the 1990s, designed to capture the nostalgic 1950s diner ambiance, and formed strategic alliances, such as the one with Pilot Flying J in 2010, to strengthen its U.S. footprint.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Denny's offers 3 types of franchises:

Facility Type Initial Investment Range
Denny’s Heritage 2.0 Facility $1,618,375 to $3,056,875
Nontraditional Denny’s $255,000 to $826,000
Denny’s within a Travel Center $953,415 to $1,691,575

We are summarizing below the main costs associated with opening a Denny’s Heritage 2.0 facility franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Denny’s Heritage 2.0 facility

Type of Expenditure Amount
Initial Franchise Fee $30,000
Site Improvements $50,000 to $500,000
Building and Improvements $950,000 to $1,500,000
Architectural Design and Engineering $30,000 to $60,000
Equipment, Fixtures and Furnishings $350,000 to $450,000
Signs $80,000 to $120,000
Standard Enterprise Technology Platform $25,000 to $40,000
Opening Inventory and Supplies $20,000 to $30,000
Opening Advertising $3,000 to $5,000
Opening Menus $300 to $800
Opening Gift Cards $74
New Restaurant Opening Training Team $0 to $36,000
Security Deposits $10,000 to $15,000
Insurance – 3 months $15,000 to $20,000
Soft Costs (Permits, Survey, Inspections) $5,000 to $100,000
Additional Funds – 3 months $50,000 to $150,000
Total Estimated Initial Investment $1,618,374 to $3,056,874

Franchise Disclosure Document

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Competitors

Below are some of

Denny's

key competitors in the

Breakfast

sector.

Started franchising
Franchisees

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Franchise fee

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Royalty fee

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Investment

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Revenue (AUV)

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Gross Profit

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EBITDA

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Home-based

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Passive investment

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FDD
Denny's
1963
1273
+
-8%
-8%
$30,000
4.5% - 7%

$255,000

-

$3,057,000

n.a.

$1,806,000

Upgrade

77.0%

n.a.

Upgrade

16.9%

n.a.

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No
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No
No
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No
2022
0
+
n.a.
n.a.
$35,000
7.00%

$970,000

-

$1,866,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

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No
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No
No
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No
2012
38
+
36%
36%
$23,500
5.00%

$90,000

-

$188,000

Upgrade

n.a.

$122,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
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2007
12
+
20%
20%
$45,000
5.50%

$737,000

-

$1,889,000

Upgrade

n.a.

$1,993,000

77.1%

n.a.

Upgrade

11.0%

n.a.

Upgrade
Upgrade
Upgrade
2000
30
+
0%
0%
$44,900
6.00%

$642,000

-

$937,000

Upgrade

n.a.

$871,000

72.4%

n.a.

Upgrade

14.0%

n.a.

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No
Upgrade
No
No
Upgrade
No
2022
1
+
n.a.
n.a.
$50,000
6.00%

$783,000

-

$2,010,000

Upgrade

n.a.

$838,000

62.8%

n.a.

Upgrade

n.a.

n.a.

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No
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No
No
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No
2011
20
+
-26%
-26%
$40,000
4% - 5%

$425,000

-

$1,685,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade

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Total investment

?

Revenue (AUV)

?

Revenue growth (last 3 years)

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Profit margin

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Franchise Disclosure Documents
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Watchlist

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Priority support

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Training 

Denny's offers an extensive training program for its franchisees. Here’s an overview of the training process:

Before launching the restaurant, the franchisee, along with their Managing Owner or Designated Operator, is required to attend and successfully complete Denny's initial training program.

This program encompasses several key components, including the Franchise Manager-in-Training program and Food Safety Training and Certification.

Following the initial training, all individuals employed by the franchisee as a Managing Owner, Designated Operator, or restaurant manager must participate in and complete further training sessions as advised by the company.

Territory Protection

Under the franchise agreement, aside from the right to operate a Denny’s restaurant at the specified premises, no exclusive territory or territorial rights are granted.

There are no limitations on Denny's or its affiliates from soliciting or accepting orders from customers within your trade area. You must operate the restaurant solely at the location approved by Denny's.

You are prohibited from operating the restaurant or offering any products or services from any location other than the approved one. However, off-site sales may be conducted within a designated area if Denny's grants approval or requires it.

Number of units

2025
Franchised units

1379

1342

1273

Company-owned units

66

65

61

Total units

1445

1407

1334

Competitors

Cultivate Food + Coffee

Franchisees

?

0
+
n.a.
n.a.
Investment

?

$970,000 - $1,866,000

Waffle Cabin

Franchisees

?

38
+
36%
36%
Investment

?

$90,000 - $188,000

Wild Eggs

Franchisees

?

12
+
20%
20%
Investment

?

$737,000 - $1,889,000

Kolache Factory

Franchisees

?

30
+
0%
0%
Investment

?

$642,000 - $937,000

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Revenue (AUV)

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