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Domino's Pizza Franchise Cost & Fees

Date Incorporation: 1963

Franchising Since: 1967

Headquarters: Ann Arbor, Michigan

 

Business Description: The franchisor, Domino’s Pizza Franchising LLC, offers Traditional, Non-Traditional and Transitional Domino's Pizza Store concepts under which the franchisee will operate a Domino's Pizza Store selling pizza and other authorized products through delivery and carry-out services.

 

Franchise Offer: Below are the franchise formats Domino’s Pizza employs:

1. Domino's Pizza Traditional Stores are retail outlets located primarily in shopping centers, strip centers and similar retail locations appropriate parking for delivery vehicles and customers of the store. Domino's Pizza Traditional Stores sell pizza and other authorized products through delivery and carry-out services.

2. Domino's Pizza Non-Traditional Stores sell Domino's pizza and other authorized products and services at non-traditional locations. These locations include office buildings, shopping malls, stadiums, toll roads, airports, zoos, convenience stores and similar retail facilities. Domino's Pizza Non-Traditional Stores will ordinarily offer only carry-out service but may have sit-down facilities depending on the location.

3. Domino's Pizza Transitional Stores are locations where the menu is customized to fit the location. Domino's Pizza Transitional Stores are located in select markets that have fewer potential customers than Domino's Pizza Traditional Stores. Domino's Pizza Transitional Stores generally offer carry-out service only as of the date of the opening of the store and as market conditions materialize. The delivery service will be expanded to the point where full delivery service is offered. At that time the franchisee has an opportunity to convert the Transitional Store to a Domino's Pizza Traditional Store at the same location or such other location as approved by the franchisor.

4. The franchisor also issues licenses to large public entertainment or similar facility operators, like stadiums or their concessionaires, to sell approved products for a license fee based on facility sales. The Licensee can sell pizza and other authorized products for carry-out service at the facility.

 

Financial Assistance: No direct or indirect financing is offered to the franchisee. The franchisor does not guarantee the franchisee’s note lease or obligation. Franchisees of the Domino's Pizza system are eligible for expedited and streamlined SBA loan processing through the SBA's Franchise Registry Program.

 

Training and Assistance: Franchisees or their owners must complete all training required to operate the Store. The type and duration of the training will depend on whether franchisees have at least 12 consecutive months of current management or supervisory experience within the Domino’s Pizza system and completed Domino’s Pizza High Performance University Crew and General Manager in Training (GMIT) Programs. If franchisees have at least 12 consecutive months of recent successful management or supervisory experience within the Domino’s Pizza system and completed Domino’s Pizza High Performance University Crew and GMIT Programs, franchisees will be required to complete all required tracks of the Franchise Management School (FMS), which consists of three 3-day training events spread out over an 8-month period. If franchisees do not have the 12 consecutive months of current management or supervisory experience within the Domino’s Pizza system, they must complete the franchise pre-qualification process, complete the entire FMS course, and an individualized accelerated store training program, beginning with Domino’s Pizza Prep School. If franchisees do not have sufficient prior experience with Domino's PULSE Domino’s may require them to successfully complete training in the use of Domino's PULSE. Domino’s also may require that franchisees or their owners complete supplemental or additional training programs which it periodically may offer.

 

Territory: The franchisee will operate the store only at a location approved by the franchisor. The franchisee will not receive an exclusive territory under the Traditional store franchise agreement, the Non-traditional store franchise agreement or the Transitional store franchise agreement. However, under a Traditional store franchise agreement the franchisee is assigned an area of primary responsibility. The boundaries of the area of primary responsibility will be inserted in the Standard Franchise Agreement when it is signed. The area of primary responsibility will generally be a 1 mile radius around the Store, a 1 mile radius from a street intersection or a written description equivalent to a 1 mile radius, except that in densely populated areas, it generally will be a ½ mile radius.

 

Term of Agreement and Renewal: The term of the franchise agreement is 10 years for the Standard Franchise Agreement and the Non-Traditional Store Franchise Agreement and five years for the Transitional Store Franchise Agreement. These agreements can be renewed for 10 years for the Standard Franchise Agreement and the Non-Traditional Store Franchise Agreement, and one additional five-year term, provided at the end of the initial term and renewal term for the Transitional store franchise agreement if the franchisee meets certain requirements.

 

Obligations and Restrictions: The store must always be under the on-premises supervision of the franchisee or the Controlling Person. The franchisee or the controlling person must devote their full time as manager of the store. The franchisee must offer for sale all products required by the franchisor and make all menu items available for carry-out and delivery from the store. The franchisee may not offer for sale any products that have not been approved. The franchisor can periodically change the types of authorized products.

 

Estimated Number of Units: 10,300

 

Investment Tables:
Initial Investment: 

Traditional Store:

Name of Fee Low High
Initial Fee $0 $25,000
Leasehold Improvements $25,000 $150,000
Furniture, Fixtures and Equipment $81,000 $145,000
Signage $5,200 $30,000
3 Month's Rent $3,000 $12,000
Security Deposit $1,000 $4,000
Opening Inventory and Supplies $2,750 $6,500
Opening Advertising and Promotion $0 $3,000
Training Expenses $500 $1,700
Domino's PULSE Training Expenses $1,200 $1,200
Insurance $9,000 $17,000
Miscellaneous Opening Costs $2,500 $7,000
Additional Funds - 3 Months $10,000 $60,000
TOTAL ESTIMATED INITIAL INVESTMENT $141,650 $466,700

 

Non Traditional Store:

Name of Fee Low High
Initial Franchise Application Processing Fee $0 $25,000
Leasehold Improvements $5,000 $150,000
Furniture, Fixtures and Equipment $62,000 $136,000
Signage $5,200 $35,000
3 Month's Rent $3,000 $12,000
Security Deposit $1,000 $6,500
Opening Inventory and Supplies $2,750 $6,500
Opening Advertising and Promotion $0 $3,000
Training Expenses $500 $1,700
Domino's PULSE Training Expenses $1,200 $1,200
Insurance $6,000 $17,000
Miscellaneous Opening Costs $2,500 $7,000
Additional Funds - 3 Months $10,000 $60,000
TOTAL ESTIMATED INITIAL INVESTMENT $102,650 $460,200

 

Transitional Store:

Name of Fee Low High
Initial Fee $0 $25,000
Leasehold Improvements $15,000 $100,000
Furniture, Fixtures and Equipment $76,000 $140,000
Signage $5,200 $35,000
3 Month's Rent $2,400 $10,500
Security Deposit $800 $3,500
Opening Inventory and Supplies $1,500 $6,500
Opening Advertising and Promotion $0 $3,000
Training Expenses $500 $1,700
Domino's PULSE Training Expenses $1,200 $1,200
Insurance $6,000 $17,000
Miscellaneous Opening Costs $1,500 $5,000
Additional Funds - 3 Months $5,000 $30,000
TOTAL ESTIMATED INITIAL INVESTMENT $115,600 $377,700

 

Other Fees:

Type of Fee Amount
Royalty Fee 5.5% of Store's weekly Royalty Sales.
Advertising Fund

4% of Store's weekly Royalty Sales.


Non-Traditional Stores and Transitional Stores may receive a partial credit or make a reduced contribution.

Advertising Cooperatives 1-4%
Inspections Will vary under circumstances.
Audit Expenses Cost of audit, charges of employees, understatement plus 1.5% interest per month.
Transfer $1,500
Training Fees Maximum cannot exceed $1,000 per session.
Interest on Late Payments Lesser of 1.5% per month or highest legal rate for open account business credit in the state Store.
Charges for Testing and Evaluation Will vary under circumstances.
Indemnification Will vary under circumstances.
Costs of Enforcement Will vary under circumstances.
Annual Software Enhancement Fee $435 per store per year, after the first year.

 

The above information has been taken from the UFOC/FDD of Domino's Pizza along with other sources.

Year of FDD: 2013.

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