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Below is an in-depth analysis and side-by-side comparison of Houlihan's vs Denny's including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $1,600,000 - $4,300,000 | $305,000 - $2,404,695 |
Franchise Fee | $40,000 | $10,000 - $30,000 |
Royalty Fee | 4% | 4.5%-7% |
Advertising Fee | - | 3%-3.5% |
Year Founded | 1972 | 1953 |
Year Franchised | 1994 | 1984 |
Term Of Agreement | 20 years | 20 years |
Term Of Agreement | 20 years | 20 years |
Renewal Fee | $5K | $10K for 10 years |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/Yes | No/Yes |
Start-up Costs | No/Yes | No/Yes |
Equipment | No/Yes | No/Yes |
Inventory | No/Yes | No/Yes |
Receivables | No/Yes | No/No |
Payroll | No/Yes | No/No |
Training & Support |
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Training | - | On-The-Job Training: 91 hours Classroom Training: 16 hours Additional Training: At existing Denny's restaurants |
Support | Meetings, Field operations/evaluations, Purchasing cooperatives | 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 | Co-op advertising, Ad slicks, Regional advertising | Co-op Advertising Ad Templates National Media Regional Advertising Social media Website development Email marketing Loyalty program/app |
Operations |
Franchisees required to buy multiple units/master licenses Number of employees needed to run franchised unit: 78 Absentee ownership of franchise is 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 |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | No | Yes |
To help us more quickly expand to new markets and trade areas, Houlihan's is seeking sophisticated restaurant operators with experience building out entire markets. At this time, we are not pursuing single-site franchise agreements.
Our ideal candidate to become a franchise market developer is a successful full-service, multi-unit operator with expertise in one or more large markets (e.g. the top 75 MSAs in the United States). We are seeking entrepreneurial organizations that can thrive in our flexible franchise environment, while having access to growth capital and capital reserves, but experiencing growth constraints with their current restaurant concept(s).