Denny's offers franchisee incentives for Springfield stores

A California franchisee is scheduled to open a Denny’s restaurant in Springfield on Sunday, backed by incentives from the corporate chain.

Maher Ismail, a Denny’s franchisee since 1999, purchased the 5,000-square-foot former Belgian Waffle and Pancake House at 4760 S. Campbell in June for an undisclosed amount.

Ismail, who purchased the franchise rights from Springfield to St. Louis, plans to open two other locations in the Queen City and is actively searching along Interstate 44, U.S. Highway 65 and near Battlefield Mall, he said. The franchisee also operates three Denny’s restaurants in California and another in St. Louis, and he has plans to open 10-15 others in his Missouri territory.

Looking to expand in the Midwest, Ismail said Denny’s corporate office offered him incentives to establish franchises in the area. Compared to the Denny’s typical 8 percent franchise royalty fee, terms of the agreement stipulate Ismail pay a scaled rate starting at 3 percent for the first 2 to 3 years and capped at 5 percent for the first 10 years. He noted the franchise fees for the Springfield area stores would amount to $25,000, almost half of the standard $40,000 fee.

Ismail said he hired a St. Robert contractor, Leo Asplin, and spent upwards of $600,000 on renovations at the South Campbell spot.

Under Director of Operations Cynthia Villanueva, the eatery would initially employ 105, Ismail said, with an expected staff 60-65 stay on board long-term  for the 24/7-diner concept.

The South Campbell Denny’s is slated to open at 3 p.m. Nov. 16.

At least one other Denny’s restaurant previously operated in Springfield. Ismail, who had no connection to any previous franchises in the city, said the former franchisee and corporate entity were at odds over operations issues, forcing the chain out of the city.