Denino’sFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Denino’s franchise requires a total initial investment of $1.0M – $1.8M, including a $45K franchise fee. Per the 2025 FDD, average unit revenue was $3.4M[2]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $1.0M – $1.8M
- 43rd pct Service Resta…
- Avg gross sales
- $3.4M
- 26th pct Service Resta…
- Royalty
- N/A
- Units
- 4
- 10th pct Service Resta…
- SBA default
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $1.0M – $1.8M including a $45K franchise fee.
- Average unit revenue of $3.4M/year.
- Verdict C (Average) with a risk score of 68/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Denino’s Franchising, LLC
- Ultimate parent
- None
- CEO title
- President and Managing Member
- Michael Burke
- CEO experience
- 39 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 524 Port Richmond Avenue, Staten Island, New York 10302
- Auditor
- Daszkowski, Tompkins, Weg & Carbonella, P.C.
- Audited financials
- Franchisor revenue
- $209K
- vs $165K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Affiliated brands
- has not in the past and does not now offer franchises in any lines of business
- Richmond Avenue Gardens
- is the owner of the Licensed Marks
- maintains a pr
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Denino's franchisees operate pizza restaurants, likely focusing on dine-in, takeout, and delivery service. Day-to-day operations include food preparation, inventory management, staff scheduling, customer service, and local marketing compliance with brand standards.
- CEO
- Michael Burke
- Headquarters
- NY
- Founded
- 2015
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $45K | $45K | |
| Construction and Leasehold Improvements | $432K | $800K | |
| Lease Deposits - Three Months | $10K | $72K | |
| Furniture, Fixtures and Equipment | $184K | $300K | |
| Signage | $12K | $15K | |
| Computer, Software and Point of Sale System | $15K | $20K | |
| Grand Opening Marketing | $5K | $5K | |
| Initial Inventory | $18K | $22K | |
| Utility Deposits | $5K | $6K | |
| Insurance Deposits - Three Months | $15K | $20K | |
| Travel for Initial Training | $500 | $9K | |
| Professional Fees | $15K | $30K | |
| Licenses and Permits | $3K | $5K | |
| Additional Funds - Three Months | $250K | $500K | |
| Total initial investment | $1.0M | $1.8M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$393K
11.5% margin
Unlevered ROIC
22%
EBITDA / total invested capital
Payback
4.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.0M – $1.8M
- Near category avg vs category
- Liquid capital req'd
- $250K – $500K
- Near category avg vs category
- Franchise fee
- $45K – $45K
- Better than avg vs category
- Royalty
- Greater of 6% of Gross Sales or $1,000 per week
- Ad fund
- 0.5%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Subject to Minimum Monthly Royalty Fee Requirement of $1,000 per week |
| Marketing / ad fund | 0.5% of gross sales |
| Technology fee | $0 |
| Training fee | $300 |
| Transfer fee | $23K |
| Renewal fee | $11K |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $3.4M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Financial Performance Representations
- Sample size
- 3 units
- vs category median 13 · small
- Range (low → high)
- $1.8M→$5.0M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Denino’s Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 25%
- vs corporate-owned
- Multi-unit owners
- 40.0%
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 1
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Denino's presents HIGH RISK due to a micro-franchise system (4 units), unresolved litigation history, missing financial disclosures, unprotected territory, and going concern status—making ROI validation impossible and franchisee viability questionable.
Litigation (Item 3)
Charles J. Arnone, Jr., 300 Route 72 LLC, and Annaphia, LLC v. Michael Burke, Denino's Franchising LLC and Denino's Pizzeria Manahawkin (Index No. 152844/2019). Filed December 30, 2019 in Supreme Court of the State of New York, Richmond County. Claims: fraudulent misrepresentation, breach of contract, tortious interference with contract. Settled with Stipulation of Discontinuance with Prejudice entered February 6, 2023.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Daszkowski, Tompkins, Weg & Carbonella, P.C.⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 68 / 100 rating
- 01MINOROnly 4 units in system with unknown growth trajectory suggests stagnation or contraction
- 02HIGH2019 litigation involving fraudulent misrepresentation claims and confidential 2023 settlement raises transparency concerns
- 03MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation on $1M+ investment
- 04MINORUnprotected territory creates direct competition risk from other franchisees in same market
- 05MINORHigh royalty floor of $1,000/week ($52,000 annually) creates cash flow burden regardless of sales performance
- 06HIGHGoing concern status indicates franchisor financial instability or operational uncertainty
- 07MEDHigh initial investment ($1M-$1.8M) paired with minimal system size and undisclosed profitability is unsustainable risk ratio
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | radius |
| Protected territory | No |
| Exclusive territoryℹ | Yes |
| Territory radius | 1 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Richmond County, New York |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 1 |
View Item 3 litigation summary
Charles J. Arnone, Jr., 300 Route 72 LLC, and Annaphia, LLC v. Michael Burke, Denino's Franchising LLC and Denino's Pizzeria Manahawkin (Index No. 152844/2019). Filed December 30, 2019 in Supreme Court of the State of New York, Richmond County. Claims: fraudulent misrepresentation, breach of contract, tortious interference with contract. Settled with Stipulation of Discontinuance with Prejudice entered February 6, 2023.
Items 10, 11
Training & Operations
- Classroom training
- 21 hrs
- On-the-job training
- 59 hrs
- Training location
- Staten Island, New York
- POS system
- Revel
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Revel
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Denino’s franchise?
The total investment to open a Denino’s franchise ranges from $1.0M – $1.8M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Denino’s franchise owners earn?
According to Item 19 of the Denino’s FDD, the average gross sales per unit is $3.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Denino’s's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Denino’s (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Denino’s franchise locations are there?
As of their most recent FDD filing, Denino’s has 4 total units in the United States, including 1 franchised units and 3 company-owned units.
Is Denino’s a good franchise to buy?
FranchiseVerdict rates Denino’s as a C-grade franchise with a risk score of 68 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.