DOMINO’S PIZZA FRANCHISE STARTUP COST, PROFIT MARGIN, LOCATIONS
Domino’s Pizza is an international pizza franchise headquartered in Ann Arbor, Michigan, U.S.A. The pizza franchise, which started as a small pizza shop purchased by two brothers in the State of Michigan was incorporated in the United States of America in the year 1963.
Domino’s Pizza is reputed to be a world leader in the pizza delivery chain, with numerous outlets in six continents. Having been around for over half a century, Domino’s has evolved from just selling pizza, to other menus such as Buffalo wings, pastas, sandwiches, bread sticks and desserts.
With thousands of franchise stores operated globally by Domino’s, the company owes its industry leading-status to its franchise owners. Thus in this article, you will get all the information you need on how much is a Domino’s franchise.
GUIDE: PIZZA HUT FRANCHISE INFORMATION
FRANCHISE INFORMATION ABOUT THE COMPANY
Domino’sPizza was founded as a single store in 1960 by James and Tom Monaghan (although the former would later sell off his own share back to Tom) in Michigan, United States of America. Since then, the company has experienced an astonished growth to become a leading brand in pizza delivery, serving more than a million people daily, in over 70 countries across six continents.
Aside the sales of the traditional pizza, Domino’s also offers its customers other menu items such as Sandwiches, pastas among others which made the company drop the “pizza” in its name in 2012 to simply be “Domino’s.”
IS DOMINO’S PIZZA A FRANCHISE?
At present, Domino’s boasts of more than 14,200 stores in the United States and international market. Thus, the people might want to ask if it is a franchise. Yes, Domino’s is a franchise and they have been selling franchise opportunities to different individuals and companies since 1967.
DOMINO’S FRANCHISE INFORMATION
With 50 years of experience selling its franchises, No doubt, Domino’s franchisees will be venturing into business with a brand with a trusted franchise business model. Domino’s equips its franchisees with the necessary technical, strategic and operational information necessary. That is why more than half of Domino’s franchisees own more than a single Domino’s store.
Apart from the United States, Domino’s currently operates in another 73 countries, and the company is still expanding into emerging markets via a Master Franchise Agreement which have been consolidated among three companies; Australian Domino’s Pizza Enterprises; the British company Domino’s Pizza Group and the Indian company Jubilant Footworks.
DOMINO’S FRANCHISE OFFER
Domino’s currently has four franchise formats on offer;
- Domino’s Pizza Traditional Units – these are retail outlets found in strip centers , shopping centers, and other retail locations that have parks for work vehicles and customers’.
- Non – Traditional Units – these outlets sell Domino’s Pizza and a whole lot of other products and services at locations such as office buildings, malls, stadium, airports etc.
- Dominos Pizza Transitional Stores – These locations have customized menu to fit the location.
- Lastly, Domino’s offers licenses to large public entertainment or similar facilities like stadiums or their concessionaries, to sell Domino’s approved products.
WHY BUY INTO A DOMINO’S OPPORTUNITY
How much can you make from a Domino franchise?
- DOMINO’S PRODUCTS – Domino’s is a giant in the pizza delivery business. The company’s franchise affords you the opportunity to serve innovatory pizza; pastas; sandwiches etc, and also test new menu items.
- DOMINO’S SYSTEM – Domino’s unique online ordering system and other modern technologies continues to shape and drive the industry. You too can also become a part of this.
- DOMINO’S SUPPORT – when you become a Domino’s franchisee, be sure to get a strong support system like the in-store and classroom trainings which will help your job excel.
- DOMINO’S UNIQUE OPPORTUNITY – Domino’s is a proven business model. A Domino’s franchise opportunity helps you tap into benefits such as principles of strong unit; low barrier entry; huge cash-on-cash returns and unmatched supply chain.
- DOMINO’s GOOD – The Domino’s pizza partner’s foundation extends financial aids to team members in times of hardship and adversity. When you become a Domino’s franchisee, you too can be part of Domino’s philanthropies.
HOW MUCH DOES A DOMINO’S FRANCHISE COST?
The Domino’s franchise cos t is the summation of all the required investments to establish a franchise unit before it can begin to run optimally. The initial investment needed to launch a Domino’s unit is between $119,950 and $461,700. The new franchisee is also expected to have at least a liquid cash of $75,000.
ARE THERE OTHER BUSINESS OPPORTUNITIES AVAILABLE AT DOMINO’S
Yes there are other business opportunities at Domino’s. Domino’s has an agreement to sell a range of Coca-Cola products exclusively at its stores. So, every piece of the Domino’s pie can be enjoyed with your choice of the Coca-Cola products.
THE DOMINO’S FRANCHISE FEE
The payment that a new franchisee will make to the company in order to for them to be granted the license to operate with the company’s name is the Domino’s franchise fee. This fee is non-refundable and can only be renewed after a certain period of time.
The initial franchise fee is $25,000. Additionally, the new franchise is expected to pay a royalty fee of 5.5% of the monthly net revenue of the franchise unit, and an ad royalty fee of 3%.
DEOS DOMINO’S FRANCHISE OFFER TRAINING?
Domino’s offers training to its new franchisees as well as their owners. This training is mandatory, and must be successfully completed by the prospective franchisee. The duration of the training is dependent on whether the franchisee has been within the Domino’s pizza supervisory or management or system, or does not have any prior experience with Domino’s. If the franchisee is the former, he only has to complete the pre-qualification process. However if the prospective franchisee has no prior experience, he will be subjected to the franchise training which consist of a 5 –day franchise development training program and a 4- day pizza prep school training. Domino’s periodically also offers supplemental trainings to its franchisees.
TERMS AND AGREEMENT
A Domino’s franchise outlet has a limited period with which it can operate. At the expiration of this period, the agreement must be renewed. The period of agreement for a Domino’s franchise term is 10years standard and Non-Traditional units, while it is 5 years for the Transitional unit.
TERRITORIAL AGREEMENT
Domino’s franchisees can operate their store only at a location approved by Domino’s. The franchise will not have exclusive rights over any territory.
HOW TO OPEN A DOMINO’S FRANCHISE?
Do you know what Domino’s franchise profit margin is? What is the average return on investment? Having familiarized yourself with all the necessary information on how to open a Domino’s franchise, the next line of action is to head to Domino’s website to fill out an application to buy a franchise. If you are selected for their franchise opportunity, Domino’s franchise executive will contact you and they will assist you with all the processes involved in setting up your Domino’s franchise unit.
