Domino's Pizza
Date Incorporation: 1963
Franchising Since: 1967
Headquarters: Ann Arbor, Michigan
Business Description: The franchisor 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.
Training and Assistance: The type and duration of the training will depend on whether the franchisee has at least twelve consecutive months of recent management or supervisory experience within the Domino's Pizza system. the franchiseehas at least twelve consecutive months of recent successful management or supervisory experience within the Domino's Pizza system, they will be required to attend a "Discovery Day" held at the World Resource Center in Ann Arbor, Michigan. Discovery Day is a one day event. The franchisee must also complete the Franchisee Development Program (FDP) to obtain Qualified Franchisee Candidate status.
If the franchisee does not have at least twelve consecutive months of recent satisfactory management or supervisory experience within the 's Pizza system, they must attend a "Discovery Day," complete FDP, and complete an individualized, accelerated store training program, beginning with Domino's Pizza Prep School, a four-day, intensive in-store training program. The duration of the individualized, accelerated training program may last 90 days.
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.
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 5 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 5-year term, provided at the end of the initial term and renewal term for the Transitional store franchise agreement and the franchisor 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.
Total Number of Units: 9000th store opened in 2010
Investment Tables:
Initial Investment:
Traditional store
| Expenditures | Low | High |
|---|---|---|
| Franchise fee | $0 | $25,000 |
| Leasehold improvements | $25,000 | $150,000 |
| Furniture, fixtures and equipmen | $62,000 | $145,000 |
| Signage | $2,500 | $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 | $1,000 | $1,000 |
| 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 | $119,950 | $461,700 |
Non-traditional store
| Expenditures | Low | High |
|---|---|---|
| Franchise fee | $0 | $25,000 |
| Leasehold improvements | $5,000 | $150,000 |
| Furniture, fixtures and equipment | $62,000 | $136,000 |
| Signage | $2,500 | $30,000 |
| 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 | $1,000 | $1,000 |
| 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 | $96,950 | $455,200 |
Transitional store
| Expenditures | Low | High |
|---|---|---|
| Franchise fee | $0 | $25,000 |
| Leasehold improvements | $15,000 | $100,000 |
| Furniture, fixtures and equipment | $10,500 | $100,000 |
| Signage | $2,500 | $30,000 |
| 3 month's rent | $2,400 | $10,500 |
| Security deposit | $800 | $3,50 |
| Opening inventory and supplies | $1,500 | $6,500 |
| Opening advertising and promotion | $0 | $3,000 |
| Training expenses | $1,000 | $1,000 |
| Insurance | $6,000 | $17,000 |
| Miscellaneous opening costs | $1,500 | $5,000 |
| Additional funds (3 months) | $5,000 | $30,000 |
| Total | $46,20 | $331,500 |
Ongoing fees:
| Name of fee | Amount |
|---|---|
| Royalty fee | 5.5% of store's weekly royalty sales |
| Advertising fund | 4% of store's weekly royalty sales |
| Advertising cooperatives | 1 - 4 |
| Inspections | Vary |
| Annual software enhancement fee | $415 per store per year, after the first year |
| Gift Card transaction and processing fees | 2.5% of gift Card redemption transactions, subject to change |
Year of FDD: 2009
The above information has been taken from the UFOC/FDD of Domino's Pizza
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