Red Hot & Blue vs Denny's Franchise Comparison

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

 
Red Hot & Blue Franchise
Denny's Franchise
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 19881953
Year Franchised 19901984
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee -$10K for 10 years


Business Experience Requirements

 
Red Hot & Blue Franchise
Denny's Franchise
Experience
  • Industry experience

  • Industry experience
  • General business experience
  • Operations experience

  • Financing Options

     
    Red Hot & Blue Franchise
    Denny's Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/NoNo/Yes
    Start-up Costs No/NoNo/Yes
    Equipment No/NoNo/Yes
    Inventory No/NoNo/Yes
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support

     
    Red Hot & Blue Franchise
    Denny's Franchise
    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/evaluationsPurchasing 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 advertisingCo-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

     
    Red Hot & Blue Franchise
    Denny's Franchise
    US Expansion -Yes
    Canada Expansion NoNo
    International Expansion NoYes

    Company Overviews

    About Red Hot & Blue

    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

    About Denny's

    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. Denny's New & Emerging Markets incentive program is designed to help us recruit exceptional new franchisees to seize valuable market share in new & emerging markets. Under the program, new franchisees can save up to $1 million by developing 4 new restaurants in new & emerging markets. The estimated savings include reduced: initial fees, royalty rate, marketing fees, market planning fee, store design fees, NRO training, and MGIP (development fees). With a flexible, cost-effective prototype & best-in-class systems, Denny's is positioned for sustained franchise growth.

    The total investment necessary to begin operation of a Denny’s franchise is from $1,330,525.50 to $2,404,695.50 for a Denny’s Heritage facility; from $305,000 to $826,000 for a nontraditional Denny’s, including The Den; and from $1,025,528.50 to $1,659,695.50 for Denny’s within a Travel Center (these numbers exclude real estate). This includes the initial franchise fee of $10,000 to $30,000 and the New Restaurant Opening fee of $0 to $36,000, for a total of $10,000 to $66,000, which must be paid to the franchisor or affiliate.

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