Golden Corral vs Denny's Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Golden Corral vs Denny's including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Golden Corral Franchise
Denny's Franchise
Investment $2,700,795 - $7,037,915$305,000 - $2,404,695
Franchise Fee $50,000$10,000 - $30,000
Royalty Fee 4%4.5%-7%
Advertising Fee 2.4%3%-3.5%
Year Founded 19731953
Year Franchised 19861984
Term Of Agreement 15 years20 years
Term Of Agreement 15 years20 years
Renewal Fee 15 years (plus two, 5-year renewal options)$10K for 10 years


Business Experience Requirements
 
Golden Corral Franchise
Denny's Franchise
Experience
  • Industry experience
  • (or must have partner with industry experience.)

  • Industry experience
  • General business experience
  • Operations experience
    		•

    Financing Options
     
    Golden Corral Franchise
    Denny's Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/NoNo/Yes
    Start-up Costs No/YesNo/Yes
    Equipment No/YesNo/Yes
    Inventory No/NoNo/Yes
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support
     
    Golden Corral Franchise
    Denny's Franchise
    Training On-The-Job Training: 665 hours Classroom Training: 8.5 hours Additional Training: At company training locationOn-The-Job Training: 91 hours Classroom Training: 16 hours Additional Training: At existing Denny's restaurants
    Support Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet PlatformPurchasing 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 National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/appCo-op Advertising Ad Templates National Media Regional Advertising Social media Website development Email marketing Loyalty program/app
    Operations International franchisees required to buy multiple units/master licenses; 80% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 100

    Absentee ownership of franchise is NOT allowed. (90% 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
     
    Golden Corral Franchise
    Denny's Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    About Golden Corral

    Golden Corral restaurants began as budget steakhouses located principally in small cities from Virginia to Texas. In the mid-1980s, guest requests prompted Golden Corral to reinvent itself by introducing the Buffet & Grill Metro unit that features 160 hot and cold items, a carving station, and the Brass Bell Bakery, which offers rolls, muffins, cookies, pies and pizza made from scratch. The buffet was expanded in 2001 to include cooked-to-order sirloin steaks.

    The total investment necessary to begin operation of a restaurant ranges from $2,700,795 to $5,340,215 for the less expensive restaurant design, and from $3,453,379 to $7,037,915 for the more expensive restaurant design. This amount includes $51,400 to $4,482,285 that must or may be paid to the franchisor or its affiliates.

    #90 in Franchise 500 for 2020.

    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.

    "franchiserankingscom"
    #59 on Franchise Rankings.com
    #83 on Franchise 500 for 2021  Not on Franchise 500 for 2020