How to Buy a Denny's Franchise
If you would like to buy a Denny's Restaurant franchise, there are many important decisions and considerations that you will need to make. Denny's, located in seven countries, offers casual, family style meals that are served 24 hours a day. To become a franchise owner you must meet the requirements of the parent corporation.
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Instructions
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Investigate all of the requirements to buy a Denny's franchise. Information is on their website at the Denny's website.
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Assess the opportunity of the franchise to make sure it is right for you. Talk to other Denny's franchise owners about their experience with the parent corporation.
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Determine if you qualify as a potential Denny's franchise owner. Denny's requires franchise owners to have a minimum net worth of $1 million, $350,000 of that must be in liquid assets.
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Locate a third-party lender, to fund the initial startup costs, which will range from around $1,280,000 to $ 2,000,000 for a restaurant that seats 150 people. The startup cost does not include the real estate for your restaurant, but does include the site preparation.
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Have a realtor help you locate potential properties for your Denny's restaurant to determine the additional cost for your franchise.
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Send your franchise application, personal financial statement and verification of liquidity to Denny's corporate offices. They will contact you if they feel you are qualified to be a Denny's franchise owner to set up a meeting.
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Contact a lawyer that specializes in business franchises and write your business plan.
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Tips & Warnings
Denny's does not provide direct financing, but they do help you to find lending sources.
Denny's gives excellent company support to their new franchise owners. They will help with obtaining approval for your site and supply you with standard plans and specifications for your Denny's restaurant. This includes specifications for your equipment, signs, design and interior layout.
Denny's will also provide management training, advertising support and ongoing field training and support. The corporation will assist you with your restaurant opening and provide you with a copy of their Standards Manual.
Be aware that in order to own a Denny's franchise you will have to pay the parent corporation 4 percent of your weekly gross sales as a royalty, and an additional 4 percent of your weekly gross sales as your advertising fee.
If you are not going to be the operator of your restaurant, you must hire an operator that has been a restaurant manager or owner for at least four years, and the operator must have a minimum of 10 percent equity interest in the restaurant franchise.
You and your architect must make sure that everything meets all states and local building codes.
