Updated August 17, 2019.
Detailed Estimates of Denny’s Franchise Costs Based on Item 7 (Estimated Initial Investment) of Denny’s 2019 Franchise Disclosure Document
For a Denny’s Heritage Prototype Facility
1. Initial Franchise Fee: $10,000 to $30,000
2. Site Improvements: $0 to $300,000
3. Building and Improvements: $725,000 to $1,050,000
- The Heritage prototype is approximately 4,200 square feet with 150 seats. This building is scalable and can expand to 5,200 square feet with 220 seats or reduced to 3,400 square feet with 115 seats. Heritage requires roughly 1 acre of real estate with 50 to 75 automobile parking spaces. The interior uses Denny’s new Heritage design image.
- Real estate may range from $300,000 to $1,500,000 or more. If you convert an existing building, the cost may vary from $500,000 to $1,200,000, plus the cost of purchasing or leasing the building.
- The cost of purchasing real estate, or the capitalized value of the lease on existing land and building, may vary from $400,000 to $2,000,000.
4. Architectural Design: $40,000 to $90,000
5. Equipment, Fixtures, and Furnishings: $350,000 to $450,000
6. Signs: $35,000 to $90,000
7. Dine POS System: $20,000 to $40,000
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- Includes cost of installation and training.
Subtotal (Building and Equipment): $1,180,000 to $2,050,000
8. Opening Inventory and Supplies: $17,000 to $28,000
- Includes non-ingredients and initial food inventory.
9. Opening Advertising: $3,000 to $5,000
10. Opening Menus: $413 to $580
11. Opening Gift Cards: $115.50
- Gift Cards and Gift Card Carriers are packaged in boxes of 250 cards. The current cost is $115.50 per box. The cost of shipping is extra.
12. New Restaurant Opening Training Team: $0 to $36,000
- This amount does not include airfare.
13. Security Deposits: $10,000 to $15,000
14. Insurance: $15,000 to $20,000
15. Permits: $5,000 to $100,000
16. Additional Funds – 3 Months: $100,000 to $150,000
- You will need capital to support ongoing expenses, such as payroll and utilities, to the extent that these costs are not covered by sales revenue.
- New businesses typically require a higher working capital during pre-opening and opening, and Denny’s estimates that the disclosed amount will be sufficient to cover ongoing expenses for your first three months of operating the Restaurant.
- This is, however, only an estimate and there is no assurance that additional working capital will not be necessary during or after this start-up phase.
- Your actual costs will depend on factors including your management skill, experience, and business acumen; local competition and economic conditions; the local market for the Restaurant; the prevailing wage rate; and the sales level reached during the start-up phase.
17. Total Estimated Initial Investment (exclusive of land): $1,330,528.50 to $2,404,695.50
- Denny’s relied upon over 60 years of experience in the restaurant business to compile these estimates.
For a Den by Denny’s
- The total estimated initial investment necessary to begin operation of a Den by Denny’s Restaurant ranges from $305,000 to $826,000.
- The Den by Denny’s can range from a counter to 2,500 square feet and is designed for a multi-use or free-standing building.
For a Denny’s Travel Center
- The total estimated initial investment necessary to begin operation of a Denny’s Travel Center (new construction) ranges from $1,025,528.50 to $1,659,695.50.
- Denny’s Travel Center is approximately 4,000 square feet (140 seats), with parking provided by the travel center.