Is Denny's or Mellow Mushroom cheaper to open?

Denny's costs $1,618,374–$3,056,874 and Mellow Mushroom costs $1,695,000–$2,916,500 to open (FDD Item 7). Denny's has the lower entry cost.

Which earns more, Denny's or Mellow Mushroom?

Denny's reports $1,918,224 average annual unit revenue vs $2,681,947 for Mellow Mushroom (FDD Item 19). Mellow Mushroom is higher.

Which is safer, Denny's or Mellow Mushroom?

SBA 7(a) charge-off rate is 7.5% for Denny's and 15.0% for Mellow Mushroom. Lower is safer, so Denny's has the stronger loan-repayment record.

Which is the better franchise, Denny's or Mellow Mushroom?

FranchiseVerdict grades Denny's A and Mellow Mushroom B, from FDD Items 5–7, 19–21 and SBA loan performance. See the full side-by-side above.

Denny's vs Mellow Mushroom

Franchise Comparison 2026

Both Denny's and Mellow Mushroom are full-service restaurants franchises. Denny's requires an investment of $1.6M – $3.1M while Mellow Mushroom requires $1.7M – $2.9M. In terms of revenue, Mellow Mushroom reports higher average unit revenue at $2.7M. On SBA loan performance, Denny's has a lower charge-off rate (7.5%) compared to Mellow Mushroom (15.0%). FranchiseVerdict rates Denny's A (Strongest tier) and Mellow Mushroom B (Above average).

Metric	Denny's	Mellow Mushroom
Verdict Grade	AStrongest tier	BAbove average
Investment Range	$1.6M – $3.1M	$1.7M – $2.9M
Franchise Fee	$30K	$50K
Royalty Rate	4.5%	5.0%
Average Revenue (Item 19)	$1.9M	$2.7M
SBA Charge-Off Rate	7.5% (283 loans)	15.0% (142 loans)
Total Units	1,334	161
Unit Growth (YoY)	-69 units	-5 units
Year Began Franchising	1994	1987
FDD Year	2025	2026