Is Mellow Mushroom or Denny's cheaper to open?

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

Which earns more, Mellow Mushroom or Denny's?

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

Which is safer, Mellow Mushroom or Denny's?

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

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

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

Mellow Mushroom vs Denny's

Franchise Comparison 2026

Both Mellow Mushroom and Denny's are full-service restaurants franchises. Mellow Mushroom requires an investment of $1.7M – $2.9M while Denny's requires $1.6M – $3.1M. 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 Mellow Mushroom B (Above average) and Denny's A (Strongest tier).

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