Denny’s Franchise FDD, Profits & Costs
Denny’s, known for its iconic diner-style eateries, has been a staple in the American restaurant scene since its rebranding from Denny’s Coffee Shops in 1961. Headquartered in Spartanburg, South Carolina, since 1991, Denny’s has grown significantly from its humble beginnings.
A key milestone was the introduction of the Grand Slam® in 1977, which became synonymous with the brand. Denny’s differentiates itself with a focus on diversity and community engagement, as highlighted by its top rankings in diversity by Fortune Magazine in 2000 and Black Enterprise magazine in 2006.
The franchise is also recognized for its innovation, with the launch of Denny’s On Demand in 2017 and virtual brands in 2021, further enhancing its service offerings.
Initial Investment
How much does it cost to start a Denny’s franchise? It costs on average between $245,000 - $3,056,000 to start a Denny’s franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
Denny’s offers 3 investment options:
| Type of Restaurant | Initial Investment Range |
|---|---|
| Denny’s Diner 2.0 Facility | $1,618,575 to $3,055,925 |
| The Den by Denny’s | $245,000 to $830,000 |
| Denny’s Travel Center | $943,575 to $1,695,925 |
The detailed investment estimate below summarizes the estimated initial investment for The Den by Denny’s.
For more information on the costs required to start a Denny’s franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $10,000 |
| Building and Improvements | $40,000 to $250,000 |
| Architectural Design | $15,000 to $40,000 |
| Equipment, Fixtures and Furnishings | $75,000 to $195,000 |
| Signs | $5,000 to $20,000 |
| Standard Enterprise Technology Platform | $20,000 to $40,000 |
| Opening Inventory and Supplies | $7,000 to $20,000 |
| Opening Advertising | $3,000 to $5,000 |
| New Restaurant Opening Training Team | $0 to $45,000 |
| Security Deposits | $0 to $10,000 |
| Insurance | $15,000 to $20,000 |
| Soft Costs – Permits and Inspections | $5,000 to $25,000 |
| Additional Funds – 3 Months | $50,000 to $150,000 |
| Total Estimated Initial Investment | $245,000 to $830,000 |
Average Revenue (AUV)
How much revenue can you make with a Denny’s franchise? A Denny’s franchised restaurant makes on average $1,829,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
| Year | AUV | Growth |
|---|---|---|
| 2023 | 1,766,751 | – |
| 2024 | 1,805,776 | 2.21% |
| 2025 | 1,829,472 | 1.31% |
Denny's Franchise Disclosure Document
Frequently Asked Questions
What funding options are available for a Denny’s franchise?
Most franchise buyers in Denny’s’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a Denny’s franchise investment?
Payback periods for franchises in Denny’s’s category typically run 3-7 years, depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
Who owns Denny’s?
Denny’s is owned by Denny’s Corporation, a publicly traded company listed on the NASDAQ under the symbol “DENN.” The corporation oversees the Denny’s brand, including its franchised and company-owned restaurants.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. SharpSheets is an independent educational resource and is not affiliated with, endorsed by, or representing any franchisor mentioned on this website. Where noted, figures are taken from the franchisor’s Franchise Disclosure Document (FDD). In some cases, we may provide independent calculations or estimates based on publicly available information. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
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Research Dennys franchise data: For the full FDD cost breakdown, investment tables, and Item 19 disclosures, visit FranchisePayback.com → Dennys FDD Review.
