Denny's vs La Madeleine Franchise Comparison

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

Start-Up Costs and Fees
 
Denny's Franchise
La Madeleine Franchise
Investment $305,000 - $2,404,695$1,249,362 - $3,088,747
Franchise Fee $10,000 - $30,000$40,000
Royalty Fee 4.5%-7%5%
Advertising Fee 3%-3.5%2.5%
Year Founded 19531983
Year Franchised 19842011
Term Of Agreement 20 yearsTerm of agreement not renewable
Term Of Agreement 20 yearsTerm of agreement not renewable
Renewal Fee $10K for 10 years-


Business Experience Requirements
 
Denny's Franchise
La Madeleine Franchise
Experience
  • Industry experience
  • General business experience
  • Operations experience
    		• • Passionate about the la Madeleine brand and our food • $5 million net worth; liquid assets of $2.5 million • Dedicated to developing multiple restaurants in a given market • Excellent knowledge of the local retail real estate market • Resources to develop and operate at least three (3) bakery cafés in a given territory • Strong track record as a multi-unit restaurant operator • Cultural fit

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

    Training & Support
     
    Denny's Franchise
    La Madeleine Franchise
    Training On-The-Job Training: 91 hours Classroom Training: 16 hours Additional Training: At existing Denny's restaurants• Ongoing field support • Store opening assistance • Continuous training • Extensive six-week training program for Operations Directors, General Managers, and Managers • Ongoing culinary development On-The-Job Training: 416 hours Classroom Training: 64 hours
    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 PlatformReal Estate • Market evaluation and planning • Site selection assistance • LOI and contract negotiation assistance • In-house real estate resources • Identifying and securing local representation 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 • Grand opening assistance • Store opening and PR resources • Local marketing support • Creative support for national promotional events Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO 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
    La Madeleine Franchise
    US Expansion YesYes
    Canada Expansion No-
    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 La Madeleine

    La Madeleine's serves handcrafted, crave-worthy country French-inspired dishes makes them a favorite with critics and guests alike. Their casual French home atmosphere and versatile menu makes them the perfect place for any meal or a special afternoon treat. La Madeleine guests are greeted with a friendly "bonjour" and an inviting ambiance where they can relax while enjoying time with friends and family. With a menu that satisfies cravings morning, noon, and night, it's no wonder guests keep coming back. For experienced restaurateurs, la Madeleine presents an exciting, financially sound opportunity to share in a unique concept with great potential. At la Madeleine we pride ourselves on our handcrafted food and ambiance we share with our guests. But behind the scenes we work even harder to provide support to our franchisees to help them grow both their business and the la Madeleine brand. We understand investing in the la Madeleine name and menu is just part of the equation for you. World-class operations and efficiencies are equally important and la Madeleine has those. Our commitment to you as a franchisee is to constantly work to find better, more efficient and more profitable ways to help you operate your la Madeleine franchise.

    The total investment necessary to begin operation of a la Madeleine franchise is as follows:
    • Traditional Café: $1,249,362 to $3,088,747 (excluding real estate and landlord allowances). This includes $43,630 that must be paid to the franchisor or their affiliates.
    • Petite Café: $1,426,200 to $1,747,400. $390,983 to $1,718,012 (excluding real estate and landlord allowances). This includes between $20,000 and $43,630 that must be paid to the franchisor or their affiliates.
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    #125 in Franchise 500 for 2020.
    #141 in Franchise 500 for 2021.