Denny's vs Applebee's Franchise Comparison

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

Start-Up Costs and Fees
 
Denny's Franchise
Applebee's Franchise
Investment $305,000 - $2,404,695$2,009,038 - $8,267,250
Franchise Fee $10,000 - $30,000$35,000
Royalty Fee 4.5%-7%4% initially, 5% possible after
Advertising Fee 3%-3.5%not less than 4%
Year Founded 19531980
Year Franchised 19842014
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee $10K for 10 years-


Business Experience Requirements
 
Denny's Franchise
Applebee's Franchise
Experience
  • Industry experience
  • General business experience
  • Operations experience
    		• Our Ideal Franchise Partner -Is committed to a long term franchise relationship built on trust and respect -Knows how to build a brand -Understands that accessible pricing and value are core components of casual dining -Has prior hospitality experience or knowledge, particularly in critical areas like supply chain, quality assurance, real estate development, and marketing -Has or will have infrastructure dedicated to the development of our brand -Has material liquidity and net worth, with access to capital -Has a track record of developing multi-unit restaurant systems

    Financing Options
     
    Denny's Franchise
    Applebee's 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
    Applebee's 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
    Applebee's Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesYes

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


    About Applebee's

    Applebee's is the largest casual dining chain in the world with sales of $4.7 billion in 2006. Already the business staple of friendly casual dining, Applebee's is pursuing expansion opportunities, and is looking for individuals/firms with a serious interest in developing our successful brand internationally. For years Applebee's has embraced neighborhood culture, providing high-quality food and drinks in a friendly and informal atmosphere. Compared to the competition, Applebee's consistently delivers food to the consumer faster as well as more affordably. We plan to take this same mantra abroad, creating a warm, inviting dining experience designed around location-specific demographics and customer preference information.

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    #96 on Franchise Rankings.com