Denny's vs Ruby Tuesday Franchise Comparison

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

Start-Up Costs and Fees

 
Denny's Franchise
Ruby Tuesday Franchise
Investment $305,000 - $2,404,695$1,559,650 - $3,877,400
Franchise Fee $10,000 - $30,000$35,000
Royalty Fee 4.5%-7%4% of gross sales
Advertising Fee 3%-3.5%1.5% of gross sales
Year Founded 19531972
Year Franchised 19841997
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee $10K for 10 years-


Business Experience Requirements

 
Denny's Franchise
Ruby Tuesday Franchise
Experience
  • Industry experience
  • General business experience
  • Operations experience
  • -

    Financing Options

     
    Denny's Franchise
    Ruby Tuesday Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/Yes-/-
    Start-up Costs No/Yes-/-
    Equipment No/Yes-/-
    Inventory No/Yes-/-
    Receivables No/No-/-
    Payroll No/No-/-

    Training & Support

     
    Denny's Franchise
    Ruby Tuesday Franchise
    Training On-The-Job Training: 91 hours Classroom Training: 16 hours Additional Training: At existing Denny's restaurants-
    Support 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 Templates National Media Regional Advertising Social media Website development Email marketing Loyalty program/app-
    Operations 44% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 80

    Absentee Ownership Allowed

    -

    Expansion Plans

     
    Denny's Franchise
    Ruby Tuesday Franchise
    US Expansion Yes-
    Canada Expansion NoNo
    International Expansion YesNo

    Company Overviews

    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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    #83 on Franchise 500 for 2021  Not on Franchise 500 for 2020


    About Ruby Tuesday

     Joining the Ruby Tuesday franchise family will open the door to an exciting future. Since 1972, we've set the highest standards in culinary excellence and restaurant innovations. We've positioned ourselves as a leader in restaurant technology and achieved the highest level of operational expertise. Franchise opportunities are now open for interested investors and potential restaurant franchisees in many areas of the world, both internationally and domestically.