The Actual Cost Of Owning A Domino’s Pizza Franchise

Domino’s Pizza started its business in 1963 at Ann Arbor, Michigan, and in just four years, opened its doors for franchising. From then on, many people have been interested to know the total Domino’s Pizza franchise cost. 

To date, they have approximately 17,020 units in 85 countries. Roughly 94% of these stores are franchise-owned. This just shows the demand for their products and the effective system that they use for their franchisees. 

Franchise Description 

The main franchisor for the brand is Domino’s Pizza Franchising LLC. Before they provide a single store franchise, the applicants must have a year of experience of being a Domino’s supervisor or manager. The hands-on experience is beneficial for a smoother transition. 

Domino’s offers three different franchise formats to its franchisees. These are listed below: 

Traditional Stores 

These are the stores or outlets found in shopping centers where there is ample space for both customers and delivery trucks. With traditional stores, you can offer pizza and other Domino’s authorized products either through delivery or carry-out services. 

Non-Traditional Stores 

Office buildings, airports, convenience stores, or zoos are considered non-traditional stores and could only offer carry-out services to its customers. 

License Fee Based on Facility Sales  

Domino’s also gives a license fee based on facility sales to public entertainment areas such as stadiums or even to convenience stores. These franchisees are allowed to offer Domino’s pizza and other approved products for carry-out services only. 

Franchisee Training

Apart from having the funds for Domino’s Pizza franchise cost, there are other requirements such as training programs. 

The franchisee must be able to complete the required training by the franchisors. The duration varies and is dependent if the franchisee has accomplished a year of being a Domino’s Pizza manager or supervisor. These training programs are either done virtually or in areas required by the franchisor. 

Once the training and experience have been accomplished, the applicant or franchisee will have to undergo a pre-qualification process. If you are qualified, you will have to take and complete the tracks of the Franchise Management School. This is so you can acquire the status of a Qualified Franchisee Candidate. 

The franchisor will assess if additional training is required, and the franchisee must be able to complete these necessary programs within one year from the date it was offered. This assessment is done periodically.  

Area of Primary Responsibility  

One can only operate a Domino’s store at a location approved by the franchisor. Traditional store franchisees will have an assigned area of primary responsibility. This will be included in the Standard Franchise Agreement and is usually a one-mile radius around the store. In other cases where there is a large population in the location, the area of primary responsibility decreases to ½ mile radius. 

Franchisee Obligations 

A Domino’s store must be under on-site supervision at all times either by the franchisee or a manager. They must take responsibility full-time. 

The franchisees must offer products required by the franchisor. The list of products could change periodically. The menu should be available for both delivery and carry-out services. Offering products not approved by the franchisor is not allowed. 

Term of Agreement 

The initial franchise agreement is valid for 10 years. This can be renewed for another 10 years only if the franchisee has proven to meet all the necessary standards. 

Financial Assistance

To date, the franchisor does not provide direct and indirect financing for Domino’s Pizza franchise cost. Likewise, it will not guarantee a franchisee’s note, lease, or obligation.  

Did You Know?

Here are some fun facts about Domino’s Pizza that you might want to know. 

DomiNick’s 

Tom and James Monaghan purchased an old pizza store named DomiNick’s in 1960. But five years after, a delivery driver named Jim Kennedy suggested a more appealing name – Domino’s.  

At that time, the store was too small for sit-down customers. Thus, Tom hired factory workers who were then laid off and tasked them to deliver pizza. And for years, Domino’s was considered delivery-centric.  

3 Million Pizzas Per Day

On a global scale, Domino’s sells up to 3 million pizzas a day. According to records, New Year’s Eve is their busiest day of the year. It is then followed by other occasions such as Thanksgiving Eve, Halloween, New Year’s Day, and of course, Super Bowl Sunday. It’s not surprising that more people would like to have their own Domino’s franchise. 

Going Digital

In the U.S alone, more than 65% of Domino’s sales are from digital ordering channels. With more customers using smartphones and the demand to have their foods delivered, the percentage should go up in years to come.  

Paving for Pizza Campaign

In one of Domino’s campaigns, they literally fixed potholes to make their delivery process seamless. This is proof of the company’s passion and dedication to providing quality pizza wherever you are. 

Simple Menu 

For 30 years, Domino’s only offered two sizes of pizzas and a drink. For them, the simplicity of their menu maintained the quality of their products. This was essential for business growth. And by the looks of it, they made the right decision. 

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