Denino’s Franchise Cost, Revenue & Review 2026
- Investment
- $1.0M – $1.8M
- Disclosed sales
- $1.9M
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Denino's is a pizza restaurant franchise serving classic thin-crust pizza and Italian fare for dine-in, takeout, and delivery. Franchisees run the restaurants, managing food prep, staffing, and service.
FranchiseVerdict summary · 2026
A Denino’s franchise requires a total initial investment of $1.0M – $1.8M, including a $45K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.9M[2]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $1.0M – $1.8M
- 32nd pct Service Resta…
- Avg gross sales
- $1.9M
- 1 outlet
- Royalty
- 6.0%
- 25th pct Service Resta…
- Units
- 4
- 6th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Full-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.0M – $1.8M including a $45K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.9M/year.
- RISKVerdict D (Below average), verdict score 36/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed); 1 signed but not yet open (Item 20).
- FLAGRevenue data based on only 1 outlet. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Denino's Franchising, LLC
- 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
- $105K
- vs $165K prior year
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
- CEO
- Michael Burke
- Headquarters
- NY
- Founded
- 2015
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 111% above the typical full-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown14 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.0M – $1.8M
- Top 40% of category vs category
- Liquid capital req'd
- $250K – $500K
- Top 40% of category vs category
- Franchise fee
- $45K – $45K
- Top 40% of category vs category
- Royalty
- 6.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 0.5%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 0.5% |
| Technology fee | $500 |
| Transfer fee | $23K |
| Renewal fee | $11K |
| Inventory (initial) | $18K – $22K |
| 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.
What do units actually make?
Average unit sales run 19% above the full-service restaurants norm.
Based on a single outlet - not a system average
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Denino’s until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.8M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Denino’s unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Based on a single outlet - not a system average
- Avg gross sales
- $1.9M
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 1 outlet
- vs category median 18 · small
- Reported figure
- $1.9MCited, not corroborated — printed on page 49 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- A single outlet — not a range
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
Compared against 801 Full-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.9M/year in gross sales. Revenue-to-investment ratio: 1.3x.
Fee burden
Total ongoing fee load of 6.5% (near the Full-Service Restaurants median).
Disclosure
Transparency score 0/10 — minimal disclosure beyond the required average. Hard to judge the distribution of outcomes across units. Sample size of 1 outlet — treat as directional only.
Operator retention
Net unit growth roughly flat at 0.0%.
Multi-unit rate
40% of franchisees own multiple units, a moderate multi-unit rate.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Full-Service Restaurants medians
How Denino’s Compares
Category median of published Full-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
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
- N/A
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 25%
- vs corporate-owned
- Multi-unit owners
- 40.0%
- Net growth (3-yr)
- +0.0%
- Net unit change over 3 years
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Signed, not yet open
- 1
- 0.25 per open outlet · Item 20 Table 5
- 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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
One prior action: Arnone et al. v. Burke, Denino's Franchising LLC et al. (2019, NY Supreme Court) – fraudulent misrepresentation, breach of contract, tortious interference; settled Feb 2023 with confidential settlement.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Daszkowski, Tompkins, Weg & Carbonella, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor total revenue of $105,376 for fiscal year ending Dec 31, 2024, disclosed in Item 8; includes $3,981 in Pepsico rebates (3.8% of total revenue). Full audited financial statements (Exhibit D) for 2022-2024 referenced in Item 21 but not present in this text extract, so balance sheet figures (net worth, assets, liabilities, net income) and auditor name are unavailable.
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 36 / 100 verdict
- 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
- 03MINORUnprotected territory creates direct competition risk from other franchisees in same market
- 04MINORHigh royalty floor of $1,000/week ($52,000 annually) creates cash flow burden regardless of sales performance
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 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 | No |
| Governing law | NY |
| Litigation count | 1 |
View Item 3 litigation summary
One prior action: Arnone et al. v. Burke, Denino's Franchising LLC et al. (2019, NY Supreme Court) – fraudulent misrepresentation, breach of contract, tortious interference; settled Feb 2023 with confidential settlement.
Items 10, 11
Training & Operations
- Classroom training
- 21 hrs
- On-the-job training
- 59 hrs
- Training location
- Staten Island, New York
- Ongoing training
- Required
- Time to open
- 7 mo
- From signing to launch
- Site selection
- Franchisee selects, franchisor approves
- Franchisor financing
- Not offered
- Item 10
- 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 $1.9M. Important context: Based on a single outlet - not a system average. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Denino’s?
Denino’s is franchised by Denino's Franchising, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Denino’s FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Denino’s FDD and qualifies whose outlets they describe.
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 D-grade franchise with a verdict score of 36 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
Are you the franchisor?
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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.