Do you want to put up a pizza delivery but don’t know where to start? Well, you can try venturing into the Domino’s franchise! The company has been franchising since the 1960s. Their business experience, hence, will be your guide as a starter.
Aside from valuable lessons from the company, you would also be operating under a world-renown brand. That will give you leverage as people already recognize your product.
Interested? Read on to know the Domino’s franchise cost. Plus, learn the requirements to become an operating partner of the company.
Average Domino’s Franchise Cost
Based on the Franchise Disclosure Document posted by Franchise Direct, the initial investment for Domino’s ranges from $99,150 to $542,400. The exact price varies depending on the store. The list is as follows:
- Traditional store: $141,560 to $542,400
- Non-traditional store: $99,150 to $535,900
- Transitional store: $115,600 to $378,400
The definition of each type is as follows:
- Traditional store- located in shopping centers, strip centers, and similar locations that have parking space for both delivery vehicles and customers
- Non-traditional store- located in office buildings, shopping malls, stadiums, toll roads, airports, zoos, and convenience stores
- Transitional store- menus in this type of unit are customized by the company to fit the location
The expenses included in the Domino’s franchise cost are:
- Franchise fee
- Location
- Equipment, furniture, and fixtures
- Other opening costs
Domino’s Franchise Startup Fee
The franchise fee for Domino’s is $25,000.
The cost is the same regardless of the type of store you plan to put up. This one-time payment would allow you to enjoy the following terms:
- 10 years for the standard and non-traditional Franchise Agreement
- 5 years for the transitional Franchise Agreement
The company also allows you to renew your term provided you meet certain requirements. If Domino’s approve the renewal, there will be an additional 10 years for standard and traditional agreements. Your ownership of a transitional store, on the other hand, will extend for another 5 years.
Location
Your total expenses for the franchise location will also depend on the type of store. Following are the costs:
- Traditional store
- Leasehold improvements: $25,000 to $225,000
- Rent for 3 months: $3,000 to $12,000
- Non-traditional store
- Leasehold improvements: $5,000 to $225,000
- Rent for 3 months: $3,000 to $12,000
- Transitional store
- Leasehold improvements: $15,000 to $100,000
- Rent for 3 months: $2,400 to $10,500
Equipment, Furniture, and Fixtures
Some of the equipment you need for your Domino’s store include:
- Pizza ovens
- Makelines
- Walk-in coolers
- Hot racks
- Point-of-Sale system
- Digital menu boards
All the above items are necessary for the operation of your Domino’s business. As for the cost, the exact amount will also vary based on the type of store. For instance:
- Traditional store: $81,000 to $145,000
- Non-traditional store: $62,000 to $136,000
- Transitional store: $76,000 to $140,00
Other Opening Costs
Domino’s franchise startup fee? Check. Location? Settled. Equipment? Funded. If your checklist looks like this, you’re making great progress. Note, however, that you still have a long way ahead before you can operate your business.
For instance, the initial investment also includes the following expenses:
- Traditional store
- Signage: $5,200 to $35,000
- Security deposit: $1,000 to $4,000
- Opening inventory and supplies: $2,750 to $6,500
- Opening advertising and promotion: $3,000
- Insurance: $9,000 to $17,000
- Miscellaneous costs: $2,500 to $7,000
- Non-traditional store
- Signage: $5,200 to $35,000
- Security deposit: $1,000 to $6,500
- Opening inventory and supplies: $2,750 to $6,500
- Opening advertising and promotion: $3,000
- Insurance: $6,000 to $17,000
- Miscellaneous costs: $2,500 to $7,000
- Transitional store
- Signage: $5,200 to $35,000
- Security deposit: $800 to $3,500
- Opening inventory and supplies: $1,500 to $6,500
- Opening advertising and promotion: $3,000
- Insurance: $6,000 to $17,000
- Miscellaneous costs: $1,500 to $5,000
Don’t forget to secure your working capital. The said fund would cover the expenses for the first 3 months of operation. Prepare $10,000 to $60,000 if you’re putting up a traditional or non-traditional store and $5,000 to $30,000 if it’s a transitional unit.
Additional Fees
Aside from the Domino’s franchise startup fee, you will also have to pay the following opening and ongoing fees:
- Royalty: 5.5% of weekly royalty sales
- Advertising fund: 4% of royalty sales
- Advertising cooperatives: 1% to 4%
- PULSE initial license fee: $4,923
- Annual software enhancement fee: $479 per store annually, after the first year
- Helpdesk/software support services: $32 per call
- Connectivity fee: $1,200 per year
- Monthly service fee for application processing: $8.47 per month
- Additional ordering system fee: $0.21 per order
- Credit card processing fee: $0.023 per transaction
- Menu management services fee: $10 per month
- Audit: Cost of audit, charges of employees, understatement plus 1.5% interest per month
- Transfer: $1,500
- Training fees: Maximum of $1,000 per session
- PULSE training fee: Maximum of $1,200 plus expenses
- Interest on late payments: Lesser of 1.5% per month
Some of the obligations have varying costs based on circumstances. These include inspection, testing and evaluation, indemnification, and enforcement fees.
Training
Your training will depend on your franchise experience. If you worked as a manager or supervisor in Domino’s, you need to complete the required tracks of the Franchise Management School (FMS).
If you don’t have the said experience within the Domino’s Pizza system, you need to:
- Complete the pre-qualification process
- Complete the entire FMS course
- Complete an individualized accelerated store training program
- Complete Domino’s PULSE training (if you do not have sufficient experience with PULSE)
The costs for the training are:
- Training expenses: $500 to $1,700
- Domino’s PULSE training expenses: $1,200
Requirements to Become a Domino’s Franchise Owner
According to Franchise Help, the financial requirements to be a Domino’s franchise owner include:
- Liquid capital worth $75,000
- Net worth of $250,000
Note that Domino’s prioritizes its team members when it comes to franchise opportunities. If you’re an external candidate, the company will only consider you if there is an available store for development. To apply, visit their webpage and fill out the online form. You would get a call if there’s an opportunity that is not yet developed by an internal franchise owner.
Better yet, join the Domino’s growing team. Not only will you secure a ticket to a franchise, but you will learn first-hand how to operate and supervise multiple stores.
Whatever your decision, good luck!