Domino’s Franchise Ownership FAQs

Are you interested in starting a restaurant with a proven business model? Have you researched companies that lack a successful franchise development program? Do you have a passion for providing superior service to customers, and do you appreciate popular meals like pizza? You might be the perfect candidate for the franchise opportunity of Domino’s Pizza ownership.

Basic Facts About the Domino’s Pizza Franchise

Domino’s Pizza Restaurant started in 1960 as a single pizza shop in Michigan. Today, the brand is one of the world’s leading pizza delivery chains with an internally based franchise system. Interested in learning more about the Domino’s franchise? Consider the following facts about Domino’s Pizza:

• The Domino’s Pizza franchise operates a highly-successful franchise business model, with more than 17,000 franchise units in the United States and across six continents in 90 international markets.
• Domino’s specialized in only pizza at one time, but the chain now offers sides and appetizers, including buffalo wings, breadsticks, desserts, as well as salads, pasta and specialty sandwiches.
• Domino’s Pizza has embraced mobile technology, and customers can order with ease using Domino’s app, where they can also track their orders and deliveries.
• More than half of all Domino’s Pizza franchise owners start more than one location since Domino’s favors internal candidates when opening new stores.
• Domino’s Pizza achieved global retail sales of almost $17.8 billion in 2021, with more than $8.6 billion in U.S. sales and more than $9.1 billion internationally.

• READ MORE: Buy Your First Franchise: Secrets Revealed

Domino’s Franchise Cost

How much does a Domino’s Pizza franchise cost? The initial investment to open a new Domino’s store can vary greatly depending on the location and the type of restaurant, but it typically ranges from $145,000 to $500,000. This includes the initial franchise fee of $10,000 and a possible reservation fee of $25,000. While Domino’s doesn’t offer direct or indirect financing for its franchisees, other franchise financing options may be available.

Domino’s Franchise Fee

According to the franchise agreement for the pizza company, Domino’s charges its franchisees various ongoing fees, including a royalty equal to 5.5% of a store’s weekly sales. Other fees charged to Domino’s franchisees include a marketing and advertising fee equal to 3% or 4% of a store’s weekly gross sales, as well as real estate fees and inventory costs.

Domino’s Franchise Profit

Domino’s franchise owners now can turn a greater profit than ever before. The brand boast’s a proven business model compared to many other pizza franchises, with more than 50 years of success and consistently solid sales. The company saw retained earnings of $402.46 million in 2021, an 11.3% increase over 2019 profits. With average profit margins of 15%, most franchisees can recoup their initial investment in Domino’s in just 4-5 years.

Domino’s Franchise Owner Salary

According to Glassdoor, the estimated annual salary range for a Domino’s pizza shop owner ranges from $107,000 to $116,000. Franchise owners are also eligible for benefits like health insurance, 401K and a 50% discount on pizzas for family and friends. Domino’s franchisees also can boost their income potential based on the store’s weekly royalty sales thanks to a generous profit-sharing program.

Requirements to Open a Domino’s Franchise

Ready to invest in opening one or more Domino’s franchise locations? The company requires Domino’s franchisees to meet certain qualifications, including:

Financial Assets

Domino’s franchisees must demonstrate a net worth of at least $250,000, including $75,000 in liquid capital.

Experience

To open a Domino’s franchise, prospective owners must have at least 1 year of experience working as a Domino’s general manager or supervisor.

Training

New Domino’s franchise owners are required to complete a franchise pre-qualification process, as well as study tracks within the company’s franchise management school.

Is Opening a Domino’s Pizza Franchise Worth It?

Starting a Domino’s franchise can be a worthwhile way to enter the restaurant business, especially compared to many other franchises. The company boasts a proven business model and ample brand recognition, making it almost impossible to fail to earn a profit. The cost of opening a Domino’s franchise usually can be recouped in 5 years or less, and the brand’s franchise fee is less than many competitors.

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This article, "Domino’s Franchise Ownership FAQs" was first published on Small Business Trends