|
Below is an in-depth analysis and side-by-side comparison of Red Hot & Blue vs Denny's including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
||
Investment | $380,700 - $1,000,000 | $305,000 - $2,404,695 |
Franchise Fee | $45,000 | $10,000 - $30,000 |
Royalty Fee | 5% | 4.5%-7% |
Advertising Fee | - | 3%-3.5% |
Year Founded | 1988 | 1953 |
Year Franchised | 1990 | 1984 |
Term Of Agreement | 20 years | 20 years |
Term Of Agreement | 20 years | 20 years |
Renewal Fee | - | $10K for 10 years |
Business Experience Requirements |
||
Experience | ||
Financing Options |
||
In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/Yes |
Start-up Costs | No/No | No/Yes |
Equipment | No/No | No/Yes |
Inventory | No/No | No/Yes |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
||
Training | - | On-The-Job Training: 91 hours Classroom Training: 16 hours Additional Training: At existing Denny's restaurants |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Field operations/evaluations | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
Marketing | Ad slicks, National media, Regional advertising | Co-op Advertising Ad Templates National Media Regional Advertising Social media Website development Email marketing Loyalty program/app |
Operations |
60% of all franchisees own more than one unit Number of employees needed to run franchised unit: 60 Absentee ownership of franchise is NOT allowed. (80% of current franchisees are owner/operators) |
44% of all franchisees own more than one unit Number of employees needed to run franchised unit: 80 Absentee Ownership Allowed |
Expansion Plans |
||
US Expansion | - | Yes |
Canada Expansion | No | No |
International Expansion | No | Yes |
We've attracted successful multi-unit franchisees and owners from such brands as Melting Pot, Papa Murphy's, Pizza Hut, Burger King, Hard Times Cafe, and Holiday Inn. Clearly, they know a winning system when they see it. � Exceptional sales-to-investment ratio � 20 Years as a National BBQ Chain in markets such as Texas, N. Carolina, and Washington, DC � Leader in the exploding BBQ Category � Multi-Award Winning, Nationally recognized Restaurants and Sauces