How Much Does It Cost To Buy A Domino’S Pizza Franchise?

Domino’s Pizza offers franchises for a fee of $25,000, though the total initial investment ranges from $119,950 to $461,700. The franchise agreement lasts for 10 years and is renewable, and the royalty fee is 5.5%. Franchisees should have at least $75,000 in liquid cash available.
Well Domino’s doesn’t sell a 15″ pizza (not here the US anyway), so the answer there would be $0. If you’re asking about the 16″ pie, then the answer varies. Ingredients are priced from our commissary slightly differently for different stores. In general, though, it costs around $2.00.

How much does it cost to start a pizza franchise?

– Space requirement in your store: 59 square feet – Your potential gross margin per square foot: $429 – Recover your initial investment within 1-6 months

How much does a cheese pizza cost at Dominos?

The Big Cheese. 9440kJ^. Huge pie cut into 8 extra-large slices. Authentic, soft & foldable New York-style dough, topped with Marinara pizza sauce & lots of stretchy mozzarella. Order Now. Nutritional Info Additive & Allergen Info.

Do Dominos pizzas charge for delivery?

Domino’s Pizza, which has more than a thousand outlets in the country operated by Jubilant FoodWorks Ltd (JFL), is levying a delivery charge for the first time. New Delhi: The country’s largest organised quick-service restaurant chain, Domino’s Pizza, has begun charging a Rs 30 fee on all deliveries ordered on its app.

Opening a Domino’s Pizza Franchise

In the U.S., it’s almost impossible to not have heard of Domino’s.A staple of main streets and sports arenas alike, Domino’s has a wide reputation and a steady fan base across the country.If you’re curious about franchising, opening a Domino’s pizza franchise may be just the right endeavor.

In this guide, we’ll cover the details of opening a Domino’s franchise, including cost and fees, corporate support, framework and more.Having all of this information will help you make an informed decision on whether owning a Domino’s franchise is the right move for you.

What to know about the Domino’s franchise

Domino’s began as a single pizza business in Michigan in 1960, and has grown to become one of the country’s largest pizza corporations.In a short period of time, the chain expanded to become a global brand with more than 17,000 franchise locations in the United States and across six continents in 90 overseas countries.Despite the fact that Domino’s began as a pizza delivery service, the company has expanded significantly to include sides and appetizers such as buffalo wings, breadsticks, desserts, and more.

Furthermore, they’ve incorporated technology into their business, allowing customers to effortlessly order and monitor their pizzas using the Domino’s app.They are always introducing innovative customer service initiatives, such as their new ″Delivery Insurance,″ which are well-received by clients and contribute to the development of a loyal clientele.Many Domino’s franchisees own more than one Domino’s restaurant – in fact, more than 50% own more than one Domino’s site.Domino’s places a strong emphasis on internal applicants when it comes to launching franchise locations, while outsider candidates often face more strict standards.

Furthermore, franchise agreements are valid for a period of ten years.Understanding the corporate structure and expectations of a possible restaurant franchise opportunity is one of the most important aspects of choosing the perfect restaurant franchise opportunity for you.Keep in mind that the discovery period is a good time to learn everything you can about the franchise — from the costs to the corporate assistance to your own duties — and that you should thoroughly study the franchise disclosure document.

Does Domino’s make money?

Domino’s exceeded profitability projections in 2019, with net sales of $1.15 billion, a 6.3 percent increase over the previous year.They also had a 3.4 percent increase in same-store sales, which implies that many of their franchise sites are performing well.Furthermore, the number of Domino’s restaurants is increasing as well – the company opened a total of 141 net new locations in the fourth quarter of 2019.

They also had a nearly 4 percent increase in carry-out sales during 2019.

Types of Domino’s franchises

  • You may choose from a variety of various sorts of Domino’s franchise stores when looking into Domino’s franchise options, depending on your preferences. The sort of store you choose to operate will have an impact on your initial investment and ultimate cost, as well as the area in which it is located. Typical store: These are retail establishments that are similar to the ones you are accustomed to seeing — commonly in shopping malls or other retail hubs — and that provide enough parking for both customers and delivery vehicles. They provide both in-store dining as well as take-out and delivery services.
  • Non-traditional store: These are the establishments that are housed within bigger establishments, such as malls, office buildings, stadiums, and other similar places of business. These are mostly exclusively available for takeout, however some do have a few seats inside.
  • Transitional stores: These establishments are located in smaller marketplaces and provide menus that are more scaled-back and modified to cater to the needs of a smaller clientele. They begin as carry-out-only establishments, but after demonstrating their viability in the market, they may expand to include a typical shop.

Training and education

Franchisees of Domino’s are required to undergo a training course at the company’s corporate headquarters, which includes four days of Pizza Prep School and a five-day Franchise Development Program.Aside from that, franchisees will be required to complete in-store training that would last between six and eight weeks.The type and duration of the training you will get will be determined by your previous management experience with Domino’s (including participation in the Domino’s Pizza High Performance University Crew and the Domino’s Pizza Manager Development Programs).

Domino’s franchise costs

What is the cost of a Domino’s franchise?Expenses may be divided into a few distinct categories.One category includes one-time, one-time-only expenses, while another category includes continuous expenditures, such as the crucial franchise royalty charge.

The following sections will go through some of the primary expenses; however, keep in mind that these figures are averages or estimates, and the specifics of your situation will have the most impact on how much you’ll really pay.

One-time costs

Initial investment: Your initial investment will vary significantly depending on your region and the sort of Domino’s restaurant you choose to create, among other factors.On the low end, you can expect to spend roughly $145,000; on the high end, you can expect to spend in the neighborhood of $500,000.Charge for opening a new Domino’s restaurant or refranchising an existing one: The first franchise fee for opening a new Domino’s restaurant is $10,000.

Please keep in mind that Domino’s may charge a $25,000 ″reservation fee″ on occasion.This extra charge will be detailed in further detail in the franchise disclosure form that you will receive.In the current environment, a minimum net worth of $200,000 is required.Cash liquidity is necessary in the amount of $75,000 in liquid capital.

Ongoing fees

Franchisees will be responsible for the payment of ongoing franchise fees, as is the case with the great majority of franchises.These are some examples: In addition to the franchise royalty charge, which is the primary source of revenue for franchisees, the franchise royalty fee is about 5.5 percent of a franchisee’s weekly gross sales.For marketing and advertising backed by corporate, you should anticipate to pay between 3% and 4% of your store’s weekly gross sales, but this cost may be greater.

Keep in mind that the costs don’t stop there: Various other payments, such as real estate fees, inventory and supply chain fees, and fixtures fees, will need to be paid either as a one-time payment or as an ongoing monthly charge as well.Check your franchise agreement attentively one more for the most up-to-date and accurate image of the costs and expectations you can get.

Franchise financing

Many people who are interested in opening a franchise location require franchise funding in order to do it.This can include both the initial expenditures, such as the franchise fee and fittings, as well as the costs of real estate and any other significant expenses.Domino’s, like many other franchises, does not provide direct or indirect funding to their franchisees, so if you need funds to start a Domino’s franchise, you’ll have to search elsewhere.

Third-party lenders are frequently a suitable alternative since they offer a wide range of loans, including equipment finance, term loans, personal loans for company, and other types of business loans.If you have a solid finance profile, such as good credit and any other company background, you will have an easier time obtaining a business loan.The amount of funding you will get will be determined in part by your qualifications.

Domino’s franchise pros and cons

Before weighing the pros and drawbacks of opening a Domino’s pizza franchise, you’ll want to examine both the general pros and downsides of franchising as well as the specific pros and cons of the Domino’s brand when deciding whether or not to go forward with it. Let’s take a deeper look at what’s going on.

Pros

  • Highly regarded: Domino’s is frequently considered as one of the best pizza franchises to own.
  • Discrimination against veterans, minorities, and women: Franchisees who are veterans, minorities, or women may be eligible to earn large reductions on the initial franchise fee and other startup costs. In particular, internal applicants with a year of management experience are at a disadvantage.
  • Open-house costs: When compared to the costs of some other fast-food franchises, Domino’s franchise costs are quite modest.

Cons

  • Absentee ownership: If you’re seeking for a franchise that will allow you to work from home, a Domino’s business will not be able to accommodate your needs.
  • Internal candidates: Domino’s offers high priority to internal candidates, which might result in more severe standards if you are not a member of the Domino’s management ecosystem
  • external applicants:
  • Territory protection: Domino’s does not provide territory protection, which protects franchisees against other approved franchise sites entering their area.

The bottom line

  • If you’re considering purchasing a franchise, there are several advantages to purchasing a Domino’s franchise.
  • Just like with any franchise, you’ll want to make certain that you request the whole franchise disclosure form so that you understand precisely what is expected of you from Domino’s corporate headquarters, in addition to the most recent costs you are required to pay.
  • It’s also worth noting that Domino’s provides great priority to internal candidates who wish to start a franchise location.
  • If you’re serious in owning a Domino’s franchise but aren’t already employed by the firm, you might want to try working for the company first and then applying for a franchise from there.
  • It’s also an excellent way to get a feel for what a typical day at a Domino’s is like in terms of the work environment.
  • No matter what you choose, be sure to talk with as many current and past Domino’s franchisees as you can during your discovery process to gain a firsthand understanding of what you can expect from your new business.
  • If you eventually decide that Domino’s isn’t the perfect franchise for you, there are a variety of different food businesses to consider as alternatives.
  • This story first published on JustBusiness, a NerdWallet affiliate that is now defunct.

How Much Domino’s Pizza Franchise Owners Really Make Per Year

  • Photograph by Matt Cardy/Getty Images In the unlikely event that owning a slice of the Domino’s Pizza pie seems like your ideal investment, it just could be.
  • Even though becoming the owner of a Domino’s franchise would be a logical and simpler move for a current employee, investing in one of the world’s largest pizza companies is a worthwhile investment to think about making (via Small Business).
  • Even a former entry-level deliveryman shared his experience with CNN, detailing how he rose from being a deliveryman to eventually becoming the store owner of 18 Domino’s restaurants, earning more than six figures each year.
  • Take the time to consider investing in the pizza company, whether you are a high school or college student looking to earn extra money as an entry-level Domino’s employee with an eye toward long-term investment opportunities, or an external franchise candidate with enough money to meet the chain’s rather extensive franchise requirements.
  • It could easily pay off in the long run.
  • From the lower risk of investing in an established Domino’s site to the added benefit of corporate marketing, Domino’s provides franchise owners with more than simply a decent return on their investment.

The price to invest in a franchise

  • Photograph by Scott Olson for Getty Images According to Franchise Help, purchasing a Domino’s franchise requires at least $75,000 in cash money, not to include the $25,000 franchise fee you’ll be required to pay up front.
  • Potential franchisees must also have a total net worth of at least $250,000 to be considered for ownership.
  • All things considered, potential purchasers may be looking at a total investment of anywhere from around $120,000 to more than $460,000.
  • Given the high barrier to entry, it is understandable that Domino’s would choose to take on less risk by training outside franchisees from the ground up.
  • With a large investment in a franchise, though, comes a large amount of support.
  • The fact that Domino’s is a household name helps to increase sales of pizza and breadsticks.
  • Apart from that, the corporation contributes significantly to local direct-mail marketing efforts in addition to the national advertising that the chain currently supplies (via Small Business).
  • Domino’s also provides its franchisees with resources and training in order to assist them in being successful.
  • After then, the corporation provides franchise owners a 10-year contract that is renewable.
  • As a result, this is a long-term financial commitment.
  • In exchange for this major assistance, Domino’s receives a 5.5 percent royalty fee from franchisees, which has an influence on how much a franchisee stands to make, well, by manufacturing and delivering piping-hot pizzas to hungry customers.
  • Are you becoming a little peckish, too?
  • The good news is that pepperoni and cheese may add up to a substantial sum of money for industrious Domino’s restaurant owners, particularly if they own many locations around the country.
See also:  How To Regeat Pizza?

How much Domino’s franchise owners make

  • Photograph by Matt Cardy/Getty Images While the amount of money that Domino’s franchise owners make varies from place to location, according to Glassdoor, an annual income range between $107,000 and $116,000 may be anticipated.
  • In addition to a highly generous pay, franchisees receive excellent perks, such as a 401(k) and health insurance coverage.
  • In addition, owners enjoy a 50 percent discount on pizzas for their family and friends.
  • That alone should be enough motivation to become a Domino’s franchisee, doesn’t it?
  • Yes, the Domino’s menu has expanded significantly since the company’s founding, including items like as wings, breadsticks, pasta meals, and sandwiches.
  • Meanwhile, according to Franchise Help, more than half of franchise owners own more than one shop, resulting in a much higher annual pay for them.
  • It is entirely feasible to create more stores after saving the equivalent of one year’s income, based on the average take-home pay for franchise owners.
  • Furthermore, when owners pay down any loans, revenues may really take off, culminating in incomes of up to seven figures per year (via Small Business).

What franchise owners get

  • Photograph by Matt Cardy for Getty Images.
  • The yearly pay range for Domino’s franchise owners is said to be between $107,000 and $116,000 according to Glassdoor.
  • However, the exact amount fluctuates from location to location.
  • Additionally, franchise owners receive excellent benefits, such as a 401(k) and health insurance, in addition to a highly generous pay and benefits package Customers who order pizza for their families and friends will enjoy a 50% discount.
  • That alone should be enough motivation to become a Domino’s franchisee, don’t you think.
  • Domino’s menu has expanded significantly since the company’s founding in 1958 to include wings, breadsticks, pasta dishes, and sandwiches.
  • Franchise Help reports that more than half of franchise owners own several stores, which translates into a much higher annual compensation for them.
  • It is entirely feasible to create more stores after saving the equivalent of one year’s income, based on the typical take-home pay for a franchise owner.
  • In addition, when business owners pay off their debt, earnings can soar, resulting in incomes of up to seven figures (via Small Business).

How Much Does It Cost to Open a Domino’s?

  • Average Reading Time: Approximately 4 minutes Domino’s is unquestionably on a growth trajectory.
  • The company’s then-CEO, Ritch Allison, stated that the company aimed to expand its global presence by adding additional 10,000 outlets, which it refers to as shops, by 2025.
  • If the expansion is successful, the company will have at least 25,000 stores in total, according to estimates.
  • As of early 2022, the pizza franchise has more than 18,000 stores in over 100 countries across the world.
  • It is projected that the cost of opening and operating a Domino’s restaurant in the United States will range from $101,450 to $667,500 during the first three months of operation, depending on the kind of business.
  • Domino’s presently franchises two types of locations: convenience shops and restaurants.
  1. Traditionally placed in shopping centers, strip malls, and other comparable retail areas, Domino’s Pizza Traditional Stores provide enough parking for delivery vehicles as well as for customers of the restaurant. Domino’s conventional stores provide delivery and carryout services for Domino’s pizza and other permitted items
  2. Domino’s Pizza Non-Traditional Stores provide Domino’s pizza and other authorized products and services in non-traditional settings. Office buildings, shopping malls, stadiums, toll highways, airports, zoos, convenience shops, and other comparable retail establishments are examples of such places of business. Unless otherwise noted, Domino’s Pizza non-traditional restaurants will typically only provide carry-out service, while some may also have seating available depending on the region.
  • Domino’s also issues licenses to large public entertainment or similar facility operators, such as stadiums or their concessionaires, as well as convenience store operators, to allow them to sell approved products in exchange for a license fee based on the amount of business generated by the facility.
  • For carry-out service, the licensee can sell pizza and other allowed items to customers who come to the facility.
  • Using the chart below, you can see that the initial investment ranges from a non-traditional shop size all the way up to a standard store size.
  • A preliminary estimate has been created using Domino’s 2021 Franchise Disclosure Document (FDD), and it is based on the company’s years of expertise in the franchising industry.
Name of Fee Low High
Initial Fee $0 $10,000
Leasehold Improvements $5,000 $300,000
Furniture, Fixtures and Equipment $62,000 $145,000
Signage $5,200 $35,000
3 Month’s Rent $3,000 $25,000
Security Deposit $1,000 $10,000
Opening Inventory and Supplies $2,750 $6,500
Opening Advertising and Promotion $0 $3,000
Training Expenses $1,000 $3,000
Insurance $9,000 $50,000
Miscellaneous Opening Costs $2,500 $7,000
Additional Funds – 3 Months $10,000 $73,000
ESTIMATED TOTAL $101,450 $667,500
  • Real estate, refurbishment and/or building expenditures, equipment, signs, and professional fees (which can include license, accounting, and legal fees, among other things) are all part of the startup costs for Domino’s, just as they are for any other similar business.
  • Variations in the initial investment are influenced by factors such as real estate costs in the surrounding area, the size of the store being opened, the amount of construction that needs to be done, and additional factors such as the amount of traffic the store receives during its first few months of operation.
  • However, the franchise charge, which is referred to as the ″starting fee″ in this situation, is the price that defines the transaction of purchasing a franchise.
  • The startup fee is essentially a cover payment for joining a franchise system and for taking use of the experience that the franchisor has amassed over the course of its operations.
  • A typical franchise agreement contains the right to utilize the franchisor’s system (which may include trademarks and an operating system) as well as services that the franchisor gives to franchisees, such as assistance in locating a location, training materials, and so on.
  • Domino’s is unique in that it all but compels those who wish to own a franchise to first learn how to run and administer a restaurant, or supervise numerous locations, before they can launch their own stores in their own city or town.
  • More than 90 percent of its franchise owners began their careers as members of the Domino’s team, and the company says ″opportunities for external candidates are extremely limited and sought only when we do not have an existing franchisee or a new internal franchisee who can buy or build the stores in need.″ The most typical way for aspiring Domino’s franchisees to get started is to apply to work as a manager at a local Domino’s.
  • The couple submits an application to acquire their own franchise after one year of management experience.
  • In addition, a lot of Domino’s franchisees had previously worked as investors or restaurant owners before launching their own Domino’s franchise business.
  • There are also business persons that have been approved by Domino’s to take over existing locations.
  • Please check our Domino’s Franchise Disclosure Document (FDD) website for additional information on the expenses of a Domino’s franchise.
  • If you’re looking for further pizza franchise possibilities, have a look at our Pizza Franchise Opportunities page.

Cost of buying a Domino’s Pizza franchise

  • If you were to purchase a Domino’s Pizza franchise, you’d need to have £120,000 in cash on hand (not borrowed); this is referred to as liquid capital in the business world.
  • The overall cost of opening a Domino’s Pizza outlet is around £280,000, with franchisees often arranging the remainder of the cash through a loan from a financial institution.
  • Everything necessary to get your business up and operating is included in the purchase of the franchise.
  • This covers the building itself as well as all of the equipment you’ll require.
  • Because it is a franchised business, Domino’s makes its own fresh pizza dough and sources all of the pizza toppings and other food items sold in its stores from its own suppliers.
  • This means that when you become a franchisee, you will find that everything is already in place to help you get your business up and running as soon as possible.
  • Because Domino’s trains all of its new franchisees, you’ll be required to participate in a three-week franchise development program, during which you’ll learn everything you need to know about running a store, from making pizzas to hiring employees to marketing your business.
  • You’ll also get the opportunity to work at an established shop and meet with some of Domino’s franchisees in order to truly get your hands dirty and learn everything there is to know about the industry.
  • When you become a Domino’s franchisee, you’ll be required to sign a franchise agreement with the company.
  • This contract means that you agree to operate your store in accordance with Domino’s policies and procedures regarding pizza making, quality, decor, signage, layout, and everything else that distinguishes it as a Domino’s Pizza store.
  • One of the most significant advantages of purchasing a Domino’s franchise is the assistance you’ll receive from the company’s corporate headquarters.
  • Everything from information technology to local retail marketing will be handled by the head office staff.
  • Every new franchisee is also assigned a franchise consultant, who will provide ongoing assistance from the outset of the relationship.
  • If you become a franchisee, you will be required to pay Domino’s a monthly royalty fee based on a percentage of your sales.

You will also be required to contribute a portion of your sales to the Domino’s national advertising fund, which will be used for marketing activities such as the Britain’s Got TalentTV sponsorship.A successful franchisee is one that is dedicated to their work, enthusiastic about their profession, and has a good sense of humor.It’s critical to have a fantastic team behind you as well, and to ensure that everyone is working towards the same goals of providing fantastic quality pizzas and outstanding customer service to your customers.In exchange, Domino’s provides excellent compensation – one in every three of its franchisees is a millionaire!

In the event that you are interested in learning more about the Domino’s Pizza franchise, please contact us via email.Other food franchises for sale in the United Kingdom can be found here.View a list of international food franchises that are interested in expanding into the United Kingdom.

Domino’s Pizza Franchise Opportunities

  • The Domino’s Pizza Franchise is widely regarded as one of the most well-known pizza delivery enterprises in the world.
  • They accept orders both online and over the phone.
  • The restaurant’s menu consists of spaghetti, sandwiches, chicken wings, and salads that may be served as a side dish to accompany the pizzas.
  • Up to 10,000 brand locations have already been established, with franchisees taking advantage of Domino’s Pizza franchise prospects.
  • When you own a Domino’s Pizza restaurant franchise, you have a large customer base, a proven business model, and an acceptable cost-profit ratio, among other things.
  • How does one go about purchasing a Domino’s Pizza franchise for sale?
  • Read about the criteria for a Domino’s Pizza franchise, including costs and investment details, and then get in touch with us.

How to open a Domino’s Pizza franchise?

  1. Make certain that you have sufficient capitalisation. A minimum net worth of $100,000 is required in order to open a Domino’s Pizza restaurant franchise.
  2. Understand the financial commitment necessary to start a restaurant franchise. The price of real estate, equipment, and signage, as well as the costs of licensing and permits, uniforms, and insurance, among other things, will need to be factored into your calculations.
  3. Examine your previous work experience and personal skills. Before seeking to become a Domino’s Pizza franchise owner, you should carefully consider your previous business experience.
  4. Examine the availability of products on the market. In order to proceed with the franchising application, you will need to investigate the market availability for Domino’s Pizza franchises in your area of interest and determine whether or not there are any open markets in your area of interest.
  5. Submit your application as soon as possible. This will be examined by the Domino’s Pizza franchise team before it is approved or denied. Upon acceptance of your online application, you will receive an email confirmation receipt, in which we will also include the contact information for the franchise owner.
  6. Obtaining clearance and launching your Domino’s Pizza franchise is the next step. Your franchise application will be approved once your financial and background checks have been completed. A candidate’s approval will only be granted if he or she meets all of the standards of franchise owners.

Request Free Info

How much does Domino’s Pizza franchise cost?

  • The franchise fee for Domino’s Pizza can be as high as $25,000, with a total initial commitment ranging from $119,700 to $461,450 in the company.
  • $119,700 – $461,450 in initial investment, based on net worth The required amount is $100,000.
  • The company need $100,000 in liquid cash.
  • Fees that are charged on an ongoing basis Fee for the first year of operation: $25,000 Royalty Fees on an ongoing basis: 5% Fee for advertising royalties: 3 percent

Are you interested in starting Domino’s Pizza Franchise in the USA, India, Indonesia, Pakistan or another country?

  • For certain nations, we give estimates of franchise expenses, such as: – In the United States, the total investment required to launch a Domino’s Pizza franchise ranges from around $119,700 to $461,450.
  • It is estimated that the investment will range from Rs 84 lakhs to Rs 3.3 crores in Indian currency.
  • If the investment is expressed in Indonesian currency, the amount ranges from around Rp 1,700 million to Rp 6,530 million.
  • – The investment ranges from around PKR 18,751,005 to approximately PKR 72,286,142 in Pakistani currency.
  • Request Free Information on a Domino’s Pizza Franchise.

How Much Does it Cost to Open a Domino’s Franchise in 2021?

Skip to content

How Much Does it Cost to Open a Domino’s Franchise in 2021?

  • Over the past decade, the Domino’s pizza brand has experienced unprecedented growth. The firm was among the first to develop an online application that allowed clients to follow the status of their pizza delivery order. To broaden its menu offerings, Domino’s has lately introduced profitable menu items such as oven-baked sandwiches and chicken wings, in order to provide a more diversified selection. In reality, how much money will it take to open a Domino’s? To start this pizza franchise, expect to spend between $200,000 and $461,450. In addition, you will require at least $100,000 in liquid cash to be eligible. You’ll also need a net worth of at least $100,000 to be considered. Please complete our franchise assessment to determine whether or not Domino’s is the ideal fit for you. Now that we’ve covered the fundamentals of what to expect, let’s take a look at the financial concerns for this franchise in further detail. Financial Requirements and Fees
  • Average Sales/Revenue per Year
  • Franchise Facts
  • Financial Requirements and Fees
  • How Much Profit Does a Domino’s Franchise Make Per Year?
  • Domino’s Advantages
  • Domino’s Challenges
  • How Much Profit Does a Domino’s Franchise Make Per Year?
  • Is Owning a Domino’s Franchise the Right Move for You?

Financial Requirements and Fees

  • Before you can create a Domino’s, you’ll need $100,000 in cash money, $100,000 in net worth, and the capacity to pay a $25,000 franchise fee, according to the company.
  • Many franchisees, including Domino’s, provide reductions on their costs under specific circumstances, and the company is no exception.
  • The organization offers a substantial Veterans Program that assists these entrepreneurs in getting their businesses off the ground.
Fees/ Expenses Dollar Amount
Liquid Capital $100,000
Net Worth $100,000
Initial Franchise Fee $25,000 
Initial Total Investment ~ $119,700 to $461,450

When it comes to creating a new location, the initial overall cost might vary significantly because there are a variety of considerations to be made. We started by breaking out the criteria into a spreadsheet, which you can find below. Note that these figures may not necessarily represent the whole cost, since there may be other costs that have not been included in the calculations.

Fees/ Expenses Dollar Amount
Additional Funds for 3 Months ~ $10,000 to $73,000
Franchise Fee ~ $25,000
Furniture, Fixtures, and Equipment ~ $62,000 to $145,000
Insurance ~ $9,000 to $40,000
Leasehold Improvements ~ $5,000 to $225,000 
Miscellaneous Grand Opening Costs ~ $2,500 to $7,000
Opening Advertising and Promotion  ~ $0 to $3,000
Opening Inventory and Supplies ~ $2,750 to $6,500 
Security Deposit ~ $1,000 to $10,000
Signage ~ $5,200 to $35,000
Three Month’s Worth of Rent ~ $3,000 to $25,000
Training Expenses ~ $1,000 to $3,000
Estimated Total Amount ~ $119,700 to $461,450
  • As you’ve certainly observed, several of the expenditures, such as rent and security deposit, have significant swings from month to month. When it comes to the construction and location of its locations, Domino’s has certain regulations in place. The cost of real estate in your location is a significant component in determining your beginning expenses. The following are the store’s requirements: There are at least 15 parking places available for clients and delivery trucks on the 3.75-acre parcel of property with excellent visibility.
  • A pole sign or a pylon sign allocation that is devoted to pole signs
  • A pick-up winder is recommended.
  • Within a 3-mile radius, there are between 3,000 and 15,000 homes.
  • With an ADT (average daily traffic) of 20,000 (which varies depending on the market)
  • There are further construction criteria to consider, as listed below: ranging from 1,200 to 3,000 square feet
  • The electric service was provided in three phases and at 400 amps to the main panel (as required by regulations)
  • Heating, ventilation, and air conditioning (HVAC): 1 ton for 150 square feet of space
  • 1.1 million BTU (British thermal unit) of gas per line
  • 1″ of water per line (minimum)
  • high, open ceilings (recommended)
  • The presence of a large sign and a lighted awning is desired
  • the presence of a dedicated garbage cage is preferable.
  • The storefront is 20 feet or more in length and is made of linear glass.
  • With Domino’s, you have the option to own two different sorts of shops.
  • The first is their typical store, which can be seen in shopping malls and other public gathering places.
  • Customers’ parking has to be accommodated at these retail establishments.
  • Not sure what type of business to start?
  • Take our 7-Minute Franchise Business Quiz to find out more!
  • Additionally, non-traditional retailers may be located in locations like airports, stadiums, zoos, and other similar establishments.
  • Because of the adaptability of this pizza concept, the placement of the business is more variable than with other similar concepts.
  • Finally, after the business is up and fully running, there are a variety of expenditures to consider.
  • Here are some of the ongoing costs to take into consideration when deciding to create a franchise:
Fees/ Expenses Dollar Amount
Advertising Fund 4% of store’s weekly royalty sales
Carryout Tracker Bundle ~ $300
Connectivity Fee ~ $1,200 per year
Food Safety Audits ~ $190
Help Desk & Software Support Services ~ $45 per call
Mobile Inventory Device ~ $285
Royalty  5.5% of store’s weekly royalty sales
Server Bundle ~ $3,300
Transfer ~ $1,500
  • This may appear to be a large number of costs, but it is really a quite common agreement when owning a franchise.
  • Once again, these figures are not included in the overall amount of money that was initially invested.
  • These are the costs of doing company on a monthly basis.
  • You’re probably wondering at this point how much profit will be left over after all of the expenditures have been deducted from the total.
  • Following that, we’ll look at overall revenue, average sales per unit, and the amount of money a franchisee can anticipate to generate over time.

Average Sales/ Revenue per Year

Systemwide Annual Sales/ Revenue

  • Domino’s systemwide annual sales/revenue was predicted to be over $14.3 billion in 2019, representing an increase from their previous year’s figure of $9.8 billion.
  • As of the third quarter of 2020, their numbers were 21.5 percent higher than the same period the previous year.
  • Despite the epidemic, they observed a growth in their population.
  • Because of their delivery services, they had a large number of customers.

Average Annual Sales per Unit

During a year, the average yearly sales per shop are predicted to be $42,120, while the average annual carryout sales per store are up to $81,640. The reason for the two numbers is because Domino’s treats them in two distinct ways. As you can see, a significant portion of their revenue comes from carryout, which is a significant contributor to their success.

Average Franchisee Profit 

  • In the United States, the typical franchise owner earns a salary or profit of $50,000 to $200,000.
  • Calculating an average is challenging due to the wide range of values in the data.
  • There are just too many variables to take into consideration, with geography being a significant one.
  • This is not the ideal statistic to consider when determining whether or not the store is successful in the long run.
  • As an alternative, you may compare the franchise to other Domino’s locations in the same or similar areas to your intended territory.
  • Is your prospective store going to be located in a major metropolitan area?
  • Is it a university town?
  • If so, is it in a more conventional or less traditional location?
  • All of these are important elements in determining profitability.
  • Due to the fact that other franchisees carry and manage their companies in very different ways from yours, you will not be able to decrease expenses for profit in the same places that they may be able to do so and vice versa.
  • The cost of labor will differ from one state to another as well.
  • ″How much profit does a Domino’s franchise generate?″ would be a more appropriate question to ask as a potential franchisee.
  • Understanding this will enable you to more effectively access whatever gains you may have retained at the end of the year, if you have any.

Franchise Facts

  1. Domino’s Pizza was founded in 1963, and the company began franchising operations in 1967.
  2. There are around 17,020 units in all, according to estimates.
  3. Pizza, spaghetti, salads, chicken wings, and sandwiches are among the selections on the menu.
  4. They are considered to be a component of the quick-service restaurant sector.
  5. Ann Arbor, Michigan, is the location of their corporate headquarters.

How Much Profit Does a Domino’s Franchise Make Per Year?

  • The average Domino’s franchise owner earns between $107,00 and $116,00 in compensation or profit, according to estimates.
  • These are impressive figures, and many franchisees are able to use them to pay off debt and manage several businesses as a result of their efforts.
  • More than half of franchisees own more than one location, according to the franchisee survey.
  • This translates into more money in your pocket, which, depending on how well you manage your finances, might possibly lead to a seven-figure salary in the future.
  • For those of you who are thrilled about these figures, it is important to note that there are several additional benefits to becoming an owner of a franchise.
  • Of course, along with the advantages, there are always difficulties.
  • Let’s start with the benefits of using this method.

Advantages of Domino’s

  • Aside from a generous income, franchisees are eligible for additional perks like as a 401(k) and health insurance, which is a welcome addition.
  • They also receive a 50 percent discount on the meals they purchase from their own establishment.
  • Using this method, you can have your favorite pizza or wings for a fraction of the price.
  • If you own a franchise rather than starting your own firm, getting a bank loan is much easier because there is less risk involved.
  • The company idea and operating plan have previously been tested and shown to be successful.
  • A comfortable wage combined with less risk than other franchise ideas is a significant advantage for new franchisees.
  • In particular, when it comes to Dominos, you have the advantage of being the owner of a well-known and well-established brand.
  • As a result, promotion should be quite straightforward, and the fact that a new Domino’s has opened in town will be seen by many.
  • Your Domino’s franchise will do well even if you don’t put in much effort because it has a positive reputation among pizza enthusiasts.
  • Consider the following article: How Much Does It Cost to Open a Little Caesars Franchise?
  • The organization also provides training to prospective franchise owners, which can be anywhere from a couple of weeks to almost two months in length.
  • In accordance with the conditions, they can provide these training services either online or in-person.
  • While many Domino’s owners have prior management expertise, this assistance may be provided to anybody who is unfamiliar with the process of owning or managing a Domino’s restaurant, making it more accessible to outsiders.
  • This is particularly advantageous for first-time franchisees who may find it difficult to make the shift from employee to owner of a pizza business.

Over the last ten years, Domino’s has also demonstrated an ability to adapt to new technologies and to be inventive in its operations.Their innovative pizza ordering software, which allowed users to follow the status of each delivery, was developed in collaboration with Pizza Hut.Currently, the firm is experimenting with self-driving pizza delivery vehicles.You won’t find these types of tasks in other possibilities since they are too forward thinking.

Of course, along with the advantages and rewards of owning and operating a successful franchise business come the obstacles that come with it.We’ve spoken about some of your advantages, now let’s speak about some of the disadvantages you could encounter.

Challenges of Domino’s 

  • Despite the fact that this is a well-known franchise, there are certain difficulties associated with its widespread recognition.
  • For starters, there is internal competition among the franchise owners in the surrounding area.
  • You must devise a strategy for standing out and either attracting new clients or impressing those who are already in your immediate region.
  • In some densely populated areas, there may be a large number of Domino’s restaurants with which you will have to compete.
  • Also noteworthy is the fact that there are other other pizza franchises that are expanding and adding new locations.
  • More traditional pizza establishments, such as those that serve Italian-style pizza or deep-dish Chicago-style pizza, are becoming increasingly popular alongside fast-food choices.
  • Atop that, if customers don’t like the pizza or have read poor reviews, it may be tough to stand out from the crowd or stay afloat in a crowded environment where there are so many others.
  • What You Should Know: How Much Does It Cost to Open a Pizza Hut?
  • An additional obstacle will be determined by your choice of whether to create a standard or unorthodox store.
  • If you launch your franchise in an atypical setting, such as a music venue or zoo, you will find that it is overflowing with customers.
  • However, at these unconventional locations, Dominos is not only operating in a physical location, but also providing carry-out services to their customers.
  • Despite the fact that other retailers frequently accept in-person orders, Domino’s is the polar opposite.
  • It is critical to train effective employees who are also comfortable working in a fast-paced setting.
  • In addition, it’s vital to remember that in high-traffic regions, you may find yourself needing to recruit more employees, which means paying them more and providing them with more training.

Clearly, there are a lot of pros and disadvantages to owning a franchise, and it is ultimately up to you to assess your talents and determine whether or not this is the sort of business you want to operate.

Is the Domino’s Franchise Right for You?

  • Those interested in opening a franchise must first pass a training course at the company’s headquarters, followed by on-the-job training at a shop. Because of their simplified procedure, many of their internal workers move on to become business owners. Having said that, the Domino’s franchise places a strong emphasis on having prior expertise and understanding of the store’s operations. In terms of initial cost, this is a very smart investment because it is quite inexpensive when compared to other brands, albeit this is dependent on the specific circumstances. Finally, anybody interested in running this franchise should have the following qualifications: Be willing to work at a Domino’s for experience or already have prior management experience
  • Complete the Domino’s training program if one is necessary. Depending on the circumstances, this might be completed online or in person. In addition, you may be expected to participate in additional training opportunities
  • Be prepared to operate in an atmosphere where carryout orders predominate over in-person sales
  • Be prepared to deal with heavy traffic and a large volume of orders
  • Domino’s is not like other businesses in that they operate primarily in person; instead, they get the majority of their orders over the phone or on the internet.
  • This may need more training, but it is a desirable feature for customers.
  • Domino’s is a highly successful company that provides extensive training to its franchise owners.
  • However, this position is best suited for someone who is comfortable working in an unorthodox environment and who has prior expertise in the food service industry.
  • In addition to being highly fast-paced, fast-food pizza requires you and your crew to operate swiftly and effectively together.
  • This franchise may be a good fit for you if you are prepared to put in the effort to get the necessary skills and are enthusiastic about providing outstanding pizza and service to your customers and clients.
  • Consider the following article: What Is the Real Cost of Opening a Dunkin’ Donuts Franchise?

Popular Pizza Franchise Fees and Expenses

  • Instead of operating mostly in person, Dominos receives the majority of its orders over the phone or online, as opposed to other businesses.
  • The fact that clients can do this may necessitate further training.
  • Domino’s is a very successful company that provides extensive training to its franchise owners.
  • However, this position is best suited for someone who is comfortable working in an unorthodox environment and who has prior experience in a similar position.
  • You and your crew must be able to work efficiently and effectively together since fast food pizza is incredibly fast-paced.
  • This franchise may be a good fit for you if you are prepared to put in the effort to get the necessary skills and are enthusiastic about providing quality pizza and service.
  • Consider the following article: How Much Does It Really Cost to Open a Dunkin’ Donuts Franchise?

Get Free Pizza Franchise Startup Quotes

Financial Requirements to Open a Pizza Franchise

  • A minimum net worth and/or minimum liquid assets requirement for franchisees is common practice in the pizza industry, as is the case with all fast food franchises.
  • The required minimum net worth might range anywhere from $100,000 to more than $1 million dollars.
  • Those who do not satisfy the basic requirements will not be evaluated in the majority of circumstances.
  • As well as these costs, there are one-time franchise fees that vary from around $10,000 to $50,000, recurring service or royalty fees that typically range from 3-8 percent of gross monthly sales, and in some cases monthly advertising expenses.
  • The good news is that the majority of pizza franchises are upfront about their fees, presenting them prominently on their websites to notify prospective franchisees of their costs.
  • We’ve included some pricing information for some of the most popular franchise opportunities below.

Pizza Hut: $295,000-$422,000

  • In addition to the information provided below, Pizza Hut’s website provides a fairly extensive analysis of the fees and expenses associated with opening a franchise, including costs for items such as inventory, computer equipment, and building modifications, among other things. To see the entire list, please visit this page. There are no minimum net worth requirements
  • however, there are minimum liquid assets requirements of $350,000
  • and an initial franchise fee of $25,000 is required.
  • Monthly royalties amount to 6 percent of gross monthly sales.
  • 2.5-3 percent of total monthly sales are spent on national advertising.

Domino’s: $119,950-$461,700*

  • Domino’s offers a very restricted number of employment opportunities. The firm only recruits new franchisees when it does not have any existing franchise owners who are willing to purchase or construct stores in areas where they are needed. Despite the fact that fees are not disclosed online, FranchiseHelp.com claims the following, which does not include a minimum net worth or liquid assets need. Initial franchise price: $25,000
  • royalties: 5.5 percent of gross monthly sales
  • initial franchise charge is non-refundable.

Little Caesars: $266,000-$681,500

  • Similarly to Pizza Hut, Little Caesars provides an in-depth analysis of prices. It is quite difficult to estimate the overall cost because it is dependent on a variety of factors, including whether you are opening a freestanding franchise or a smaller business in a strip mall. Minimum net worth: $250,000
  • minimum liquid assets: $100,000
  • first franchise fee: $15,000-$20,000
  • grand opening advertising: $12,000-$20,000
  • initial franchise fee: $15,000-$20,000
  • initial franchise fee: $15,000-$20,000

Papa John’s: $250,000 for an average strip mall unit

  • As part of its ongoing efforts to grow throughout the United States, Papa John’s offers incentives such as waived franchise fees, reduced royalties for the first four years, and food credits. The figures in the table below indicate standard fees, without the incentive program. Required minimum net worth: $250,000
  • required minimum liquid assets: $50,000
  • required first franchise fee: $25,000
  • required minimum liquid assets: $50,000
  • Royalties are calculated as a percentage of net monthly sales.
  • Public relations: 8 percent of net monthly sales must be spent on public relations activities, which includes the National Marketing Fund and local marketing programs
  • Obtaining money: Possibility of obtaining financing of up to $275,000

Find local pizza franchise professionals who are interested in competing for your business.

How Much Does Domino’s franchise cost?

Today, there are practically no people left who reside in the United States or have visited the country yet are unaware of Domino’s Pizza’s existence. Domino’s is one of the largest pizza businesses in the world, and it is well-known for having a good reputation. If you want to be a part of a franchise, Domino’s is a good place to start looking.

Facts about Domino’s

  • Domino’s history stretches back to 1960, when the first and, at the time, only Domino’s pizza in Michigan opened its doors.
  • In the next 60 years, the network has grown to the point that you can today find Domino’s in almost 100 countries across the world.
  • More than 17 thousand eateries in the United States welcome customers.
  • The Domino’s restaurant chain currently offers not only pizza, but also a variety of other food and desserts.
  • The corporation makes it easy for its customers to do business with them.
  • Consider, for example, an online Domino’s application that allows you to order pizza and keep track of where your order is in the process.
  • New initiatives to boost customer loyalty are being implemented, such as the recently announced shipping insurance function, which has swiftly acquired favor among Domino’s consumers.
  • In order to be ready to join Domino’s, a candidate must have thoroughly researched the company, including how the corporate structure is organized and whether or not the expectations associated with purchasing a franchise correspond to reality.

How much does Domino’s make?

The response is unquestionably tremendous. In 2019, the company’s earnings climbed by 7% over the previous year, reaching more than $1 billion in revenue. Take-out sales increased by 4 percent during the same period. In the second half of 2019, about 150 new eateries opened their doors. Furthermore, the rate of increase continues to rise.

Variations of Domino’s restaurants

  • The location and variety of the restaurant you pick are the most important factors in determining your earnings.
  • Domino’s provides three different types of restaurants for franchisees to choose from: Restaurant in the old-fashioned style.
  • Such shops are more popular in malls, where they are often located.
  • You have the option of ordering delivery from such establishments, picking up an order to go, or dining at the restaurant itself.
  • Customers and service employees may park in a large parking area that is easily accessible.
  • Restaurant that is out of the ordinary.
  • A big number of these types of pizzerias are located in enormous structures such as office buildings or sports stadiums.
  • However, because they are often small and do not attract a huge number of customers, such establishments typically provide just pizza to go.
  • Restaurant at a transitional stage.
  • These kind of eateries can be found in tiny marketplaces.
  • What separates them is the fact that they create personalized cut-down meals that are tailored to a certain limited clientele.
  • These restaurants now only accept take-out orders, but they have the potential to become traditional or non-traditional eateries in the future.

Training and education

  • To become a Domino’s franchisee, you must first complete an educational program at the company’s corporate headquarters.
  • First, you’ll spend four days at Pizza Prep School, followed by a five-day study of franchise growth to round up your education.
  • It takes around 2 months to complete training at a restaurant.
  • In general, the length of your Domino’s working experience will determine the length of your training.

Domino’s franchise cost

  • How much does it cost to start a Domino’s franchise?
  • These are the most often asked questions, and they are not any less significant.
  • As a result, the final sum is made up of a number of points that vary depending on the location and the restaurant picked.
  • There are one-time, up-front, and ongoing costs associated with this service.
  • The costs to acquire a Domino’s franchise are listed below on an average basis.
  • The first outlay of funds.
  • It can range anywhere from 145 thousand dollars to more than 500 thousand dollars, depending on the conditions indicated above.
  • It consists of the following items: Initial franchise cost of $10,000 for the construction of a new restaurant, with a possible booking charge of $25,000 in addition.
  • The amount of equity is $245,500.
  • The amount of liquid capital is $76,000.
  • Fees in effect.
  • Franchisees are solely responsible for these costs, which are not fixed and are the result of negotiations between the parties.
  • Including: Royalty: Approximately 5% of gross weekly restaurant sales are paid out as a royalty.
  • Advertising promotion should account for 3-5 percent or higher of total weekly restaurant revenue.

However, they are not the only expenditures you will have to deal with.The franchise agreement includes a comprehensive list of all needed costs, which is available online.Real estate, inventories, supply chains, and other equipment, for example, may necessitate the expenditure of more dollars..

Does Domino’s offer funding?

  • Unfortunately, this is not the case.
  • Without extra financing, not everyone can manage to cover all of their fees and obligations.
  • However, the majority of franchises, including Domino’s, do not provide such services.
  • However, you can request it from other lenders who provide equipment loans, term loans, and other types of loans.
  • Your financial profile, creditworthiness, and business history all play a role in whether or not you are successful in obtaining funding.

Domino’s Franchise Benefits and Drawbacks

  • A number of disadvantages and advantages distinguish Domino’s from its competitors, and these serve to differentiate it from them.
  • These are some examples: Domino’s has a solid reputation in the United States, and it is one of the best-rated pizzerias in the country.
  • Promotional Offers: Minorities and veterans are eligible for significant reductions on opening costs and start-up fees.
  • The cost of establishing the business is lower than that of other fast-food franchises, such as McDonald’s.
  • However, it is difficult to provide flawless results, and Domino’s is no exception: Inability to do business outside of the workplace.
  • Territory: Because Domino’s does not provide territory protection, you may face increased competition from other restaurants in your neighborhood.
  • Domino’s emphasizes internal applicants in the following ways: If you have not previously been associated with the organization, you may have difficulty receiving approval to become a franchisee.
  • Start working for the firm first, for example as a manager, and then submit an application for a franchise later on.
  • Instead of imagining your prospects for success, you will learn what your day-to-day employment at Domino’s is like in this manner.
  • So, to summarize, being a franchisee of Domino’s is a very worthwhile investment at the present moment.
  • In any event, we urge that you speak with someone who is directly associated with the franchise before proceeding.
  • We are referring to both current and former Domino’s franchisees.
  • Nothing compares to their in-depth knowledge of the Domino’s brand.
  • Talk to them and find out the answers to all of your inquiries, as well as to learn from their past mistakes and successes.

Keep in mind that the world of fast food franchises is not limited to Domino’s, and you can always discover an option that meets your preferences.Be sure to thoroughly examine the information provided by the franchisor with the assistance of a competent franchise adviser before making your final choice on purchasing a franchise and proceeding to the next phase.When obtaining a franchise, it is very necessary to go through this process.Check out our sect

Leave a Reply

Your email address will not be published.

Adblock
detector