Key Numbers
1,274
Total units open
12 franchised units
Units opened last year
68 franchised units
Units closed last year
-60 units
Net unit growth
net decline
Denny's Franchise
Franchised by DFO, LLC · FDD 2026
Food & Beverage FDD 2026 Founded 1994 · 32+ yrs Item 19 disclosed
Data extracted from DFO, LLC's 2026 Franchise Disclosure Document, filed under FTC Rule 16 CFR 436. How we analyze FDDs →
Initial investment
$255K - $3.1M
Franchise fee
$30K
Median unit revenue (unqualified)
$1.81M
System size
1,273 (+14)
The Verdict
Quick Verdict · who it fits
Denny's fits first-time franchise buyers looking for a mature food & beverage concept.
✓ Strengths
- ✓Discloses Item 19 financial performance
- ✓1,273 units — strong system scale
- ✓32 years in business — established brand
⚠ Risks to review
- ⚠No exclusive territory — franchisor can open nearby
Key FDD Facts
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$255K - $3.1M
Franchise fee (Item 5)
$30K
Royalty (Item 6)
4.5–7% + 3–3.25% ad
Item 19 median rev
$1.81M population not disclosed in this filing
System size (Item 20)
1,273 +14
Years in business
32+ yrs
Company-owned units
62
Item 3 litigation
3 suits
Model Denny's's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
What you'd pay the franchisor
Drag to your projected annual sales. Royalty 4.5–7% + ad fund 3–3.25% on gross sales.
PROJECTED ANNUAL SALES$1,810,000
$100k$3.3M
Royalty (4.5–7%)
—
Ad fund (3–3.25%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
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What's inside
Franchise Overview
Costs & Fees Breakdown
Your Obligations
Franchisor Obligations
Financial Statements
Contracts Summary
Unit Economics
Network Health
Litigation Risk
Earnings Analysis
Financial Fit Analysis
Buyer Verdict
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Research, not legal advice. Use this report alongside professional legal and financial review before signing any franchise agreement.
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Competitive intelligence for franchisors →Executive Summary
Free AI summary — the first read on the filing.
AI Due Diligence Findings PREMIUM
What our analysis flagged across the 2026 filing.
5
Risks to review
4
Strengths identified
5
Questions to ask
Industry Benchmarks
How Denny's ranks against 749 Food & Beverage peers we've analyzed.
Initial investment
34th pct · of 749 peers
Franchise fee
20th pct · of 749 peers
System size
95th pct · of 749 peers
Food & Beverage industry averages
Avg investment
$589K - $1.4M
Avg franchise fee
$37K
Avg system size
261
Franchises analyzed
749
How Denny's stacks up
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Denny's | Disclosed | $30K | $255K - $3.1M | 4.5–7% | 1,273 |
| Fp Similar price | Disclosed | $40K | $493K - $3.0M | 5% | 5 |
| Doctor's Associates Biggest system | None | $15K | $227K - $630K | 8% | 18,773 |
| Vintage Hospitality Group Top-rated in category | Disclosed | $50K | $3.5M - $6.4M | 5.5% | 33 |
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Frequently asked questions
How much does a Denny's franchise cost?
Denny's requires a $30,000 initial franchise fee and a total initial investment range of $255,000–$3,056,874, per the most recent FDD on file.
Who owns Denny's?
Denny's is franchised by DFO, LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.
Does Denny's disclose financial performance (Item 19)?
Yes. Denny's discloses Item 19 financial performance representations with reported revenue around $1,805,776. See the financials sub-page for the full distribution.
What ongoing fees does Denny's charge?
Franchisees pay a royalty of 4.5%-7% of Gross Sales and an advertising fund contribution of 3%-3.25% of Gross Sales on gross sales as defined in Item 6 of the FDD.
How many Denny's locations are there?
As of their 2026 FDD, Denny's has 1,273 total locations, with 14 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
Does Denny's grant exclusive territory?
No. Denny's does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.
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