Denny's Inc.

Family diners
Year began: 1953    Franchising since: 1984
In 1953, Harold Butler opened Danny’s Donuts, a Lakewood, California, stand that served coffee and doughnuts 24 hours a day. The following year, the stand grew and its name was changed to Danny’s Coffee Shops. Five years later, there were 20 shops in the chain, and the company changed its name to Denny’s.

Denny’s locations serve breakfast, lunch and dinner choices 24 hours a day.

203 E. Main St.
Spartanburg, SC 29319

Phone: (800)304-0222
Fax: (864)597-7708

Franchisor is a publicly-held company with 350 employee(s); 12 employee(s) in franchise department.

Franchisee Association
Denny's Franchisee Association
Contact: (602)200-8392

Franchise Growth
Year

2008
2007
2006
2005
2004
U.S. Franchises
1,081
975
947
966
974
Canadian Franchises
49
50
52
49
52

Foreign Franchises
26
26
25
25
24
Company
Owned
392
487
538
547
553

Where Seeking Franchisees
Nationwide

Outside the U.S.:

Costs & Fees
Total investment: $1.3M-2M
Franchise fee: $40K
Ongoing royalty fee: 4%
Term of agreement: 20 years, not renewable
Type of Financing Available
In-HouseThird Party
Franchise FeeNoNo
Startup CostsNoNo
EquipmentNoNo
InventoryNoNo
Accounts ReceivableNoNo
PayrollNoNo
Qualifications
Net worth requirement: $1M
Cash liquidity requirement: $350K
Business Experience:
  • Industry experience
  • General business experience
  • Operations experience

Operations
  • 88% of all franchisees own more than one unit
  • Number of employees needed to run franchised unit: 80
  • Absentee ownership of franchise is NOT allowed.

Training & Support
TRAINING
  • At franchisee's location: 19 days
  • At existing Denny's restaurants: Up to 10 weeks

ONGOING SUPPORT
  • Newsletter
  • Meetings
  • Security/safety procedures
  • Field operations/evaluations

MARKETING SUPPORT
  • Co-op advertising
  • Ad slicks
  • National media
  • Regional advertising

Rankings in Entrepreneur magazine 2004-2008
Franchise 500® rank:
#47 (2008); #45 (2007); #61 (2006); #54 (2005); #52 (2004);

Ranked #1 in category in:
2008; 2007; 2006; 2005; 2004;

America's Top Global Franchises:
#52 (2008); #44 (2007); #52 (2005);

Last Updated: 8/1/2008 12:00:00 AM



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