Domino’s Pizza Franchise Cost & Fees

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Description

Year Business Began: 1963Franchising Since: 1967Headquarters: Ann Arbor, MichiganEstimated Number of Units: 14,855Franchise Description: The franchisor, Domino’s Pizza Franchising LLC, offers 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. These are the franchise formats Domino’s Pizza employs: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.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.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.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.Training Overview: 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 Manager Development Programs. Once franchisees have completed 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 Manager Development Programs, franchisees will be required to complete the franchise pre-qualification process. If qualified, franchisees will be required to complete all of the required tracks of the Franchise Management School (FMS) to obtain Qualified Franchisee Candidate status. 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. The training consists of two days of on-site training. The franchisor also may require that franchisees or their owners complete supplemental or additional training programs which it periodically may offer.Territory Granted: Franchisees may operate the store only at a location approved by the franchisor. Franchisees 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. During the term of a Standard Franchise Agreement, neither the franchisor nor its affiliates will operate or grant a franchise for a Store whose area of primary responsibility overlaps the area of primary responsibility.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 his/her full time as manager of the store or to the management of other stores (or other related activities the franchisor has approved). Franchisees must offer for sale all products required by the franchisor and make all menu items available for carry-out and delivery from the store. Franchisees may not offer for sale any products that have not been approved. The franchisor can periodically change the types of authorized products.Term of Agreement and Renewal: The term of the initial 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. If franchisees meets certain requirements, the 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 for the Transitional store franchise agreement.Financial Assistance: The franchisor does not offer direct or indirect financing or guarantee a franchisee’s note, lease or obligation; provided, however, in limited situations it may provide financing to franchisees or guarantee a loan in connection with the DPZ Builds program, on terms and conditions it prescribes from time to time. Investment Tables: Estimated Initial Investment Name of Fee Low High Initial Fee $0 $10,000 Leasehold Improvements $5,000 $225,000 Furniture, Fixtures and Equipment $62,000 $145,000 Signage $5,200 $35,000 3 Month’s Rent $3,000 $25,000 Security Deposit $1,000 $10,000 Opening Inventory and Supplies $2,750 $6,500 Opening Advertising and Promotion $0 $3,000 Training Expenses $1,000 $3,000 Domino’s PULSE Training Expenses $1,500 $1,500 Insurance $6,000 $17,000 Miscellaneous Opening Costs $2,500 $7,000 Additional Funds – 3 Months $10,000 $73,000 TOTAL ESTIMATED INITIAL INVESTMENT $99,950 $561,000 *The initial investment range covers from Non Traditional Stores up to Traditional Stores, including Transitional Stores. Please see FDD for more details. 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% PULSE Initial License Fee $4,923 Annual Software Enhancement Fee $528 per store per year, after the first year. Help Desk/Software Support Services Currently $32 per call. Connectivity Fee $1,200 per year. Monthly Service Fee for Application Processing $20.50 per month. Additional Ordering System Fee $0.25 per order. Credit Card Processing Fee $0.023 per transaction. Menu Management Services Fee $10 per month.  Spanish Language Call Center Program Fee $2.50 per call, after the first 65 per year 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. PULSE Training Not to exceed $1,500 plus expenses. 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/Non-Compliance Will vary under circumstances. The above information has been taken from the FDD of Domino’s Pizza. Year of FDD: 2018Franchise Direct’s Disclaimer

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%
PULSE Initial License Fee $4,923
Annual Software Enhancement Fee $528 per store per year, after the first year.
Help Desk/Software Support Services Currently $32 per call.
Connectivity Fee $1,200 per year.
Monthly Service Fee for Application Processing $20.50 per month.
Additional Ordering System Fee $0.25 per order.
Credit Card Processing Fee $0.023 per transaction.
Menu Management Services Fee $10 per month.
 Spanish Language Call Center Program Fee  $2.50 per call, after the first 65 per year
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.
PULSE Training Not to exceed $1,500 plus expenses.
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/Non-Compliance Will vary under circumstances.