Denny's vs Zaxby's Franchise Comparison

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

Start-Up Costs and Fees
 
Denny's Franchise
Zaxby's Franchise
Investment $305,000 - $2,404,695$343,200 - $695,200
Franchise Fee $10,000 - $30,000$35,000
Royalty Fee 4.5%-7%6%
Advertising Fee 3%-3.5%2.87%-5%
Year Founded 19531990
Year Franchised 19841994
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee $10K for 10 years-


Business Experience Requirements
 
Denny's Franchise
Zaxby's Franchise
Experience
  • Industry experience
  • General business experience
  • Operations experience
    		• Prospective Franchisees must meet the following criteria to be considered: Collective net worth of at least $1,000,000, with liquid assets greater than $500,000 (liquidity being defined as cash or any asset that could be converted to cash within ten business days). Ability to satisfactorily pass background checks for the following: reasonable credit worthiness, no criminal convictions, no history of extensive litigation, and satisfactory motor vehicle report. Willingness of all investors to personally guarantee any obligations that are required under the license agreement. Willingness to make a commitment to this venture within 60 – 90 days of signing a license agreement. Belief that guest service is of critical importance in restaurant operations.

    Financing Options
     
    Denny's Franchise
    Zaxby'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-/Yes

    Training & Support
     
    Denny's Franchise
    Zaxby's Franchise
    Training On-The-Job Training: 91 hours Classroom Training: 16 hours Additional Training: At existing Denny's restaurantsThe initial training program is eight weeks long, consisting of a one-week orientation phase at Zaxby's Franchising, Inc.'s training center, three two-week phases at a training restaurant and the final one-week phase back at ZFI's training center. Ongoing support and training updates, in addition to other business development practices - including onsite inspections - are conducted regularly throughout the franchise system.
    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
    Zaxby's Franchise
    US Expansion YesYes
    Canada Expansion No-
    International Expansion Yes-

    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 Zaxby's

    Zaxby's Franchising, Inc., actively seeks highly qualified individuals be become licensees. Prior business experience, financial qualifications, motivation, team spirit and a track record of personal success are all important factors in our evaluation process. Prospective licensees must meet the following criteria to be considered: Collective net worth of at least $700,000, with liquid assets greater than $400,000 (liquidity being defined as cash or any asset that could be converted to cash within ten business days). Ability to satisfactorily pass background checks for the following: reasonable credit worthiness, no criminal convictions, no history of extensive litigation, and satisfactory motor vehicle report. Willingness of all investors to personally guarantee any obligations that are required under the license agreement. Willingness to make a commitment to this venture within 60 - 90 days of signing a license agreement. Belief that guest service is of critical importance in restaurant operations.
    The Zaxby's Mission Statement - Consistently Create Encore Experiences That Enrich Lives One Person At A Time - recognizes the value of all individuals.

    ZFI is committed to developing a diverse community of licensees and, in that regard, the Zaxby's franchise opportunity is open to all qualified applicants, regardless of age, gender, race or ethnicity.

    The total investment necessary to begin operation of a Zaxby’s franchised business is $343,200 to $695,200. This includes $40,200 to $45,000 that must be paid to the franchisor or its affiliates. In addition, if you enter into a Multi-Restaurant Development Agreement to develop more than one Zaxby’s restaurant, you must pay the franchisor a fee of $17,500 for each Zaxby’s restaurant scheduled for development and subsequently must pay an additional $17,500 upon execution of the License Agreement for each Zaxby’s restaurant, which amounts are credited towards the initial franchise fee for each restaurant.

    #148 in Franchise 500 for 2021.  Not in Franchise 500 for 2020.