Dominos
Domino's Pizza offers traditional and non-traditional store franchises selling pizza and other products through delivery and carry-out services. Known for its customizable pizzas and efficient delivery system, Domino's operates in the fast-food and casual dining industry.
About Dominos
Domino's Pizza, Inc., trading as Domino's, is an American multinational pizza restaurant chain founded in 1960. The corporation is Delaware-domiciled and headquartered at the Domino's Farms office park in Ann Arbor Township near Ann Arbor, Michigan. As of 2018, Domino's had approximately 15,000 stores, with 5,649 in the United States, 1,500 in India, and 1,249 in the United Kingdom. Domino's has stores in more than 83 countries and 5,701 cities worldwide.
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Dominos franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment for opening one store can vary widely and includes an initial franchise application processing fee ranging from $0 to $10,000 [p.21]. Additionally, there are startup expenses estimated over 3 months, which do not include ongoing costs like inventory purchases or royalty payments [p.32]. This isn't specified in the excerpts for a fixed amount.
What is the initial franchise fee?
The initial franchise fee ("Initial Fee") ranges from $0 to $10,000 depending on the type of store and participation in incentive programs [p.21, p.31]. This fee is generally not refundable and may be applied towards training fees or waived under certain incentive programs [p.21]. There is no initial franchise fee upon renewal of the franchise [p.395, p.337].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is generally 5.5% of sales, with potential reductions in certain circumstances [p.293]. The standard advertising contribution is 6.0%, though this was temporarily reduced to 5.75% from March 27, 2023, until the start of the second quarter of 2024 [p.311], and it may be adjusted based on market conditions or agreements [p.28].
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement is for a period of ten years [p.394]. You are also entitled to renew the franchise at the end of the renewal term in accordance with the renewal provisions contained in the franchise agreement executed by you for your renewal [p.337, p.395].
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts. The provided FDD sections discuss conditions under which other owners might be required to sell their interests if the Controlling Person receives a bona-fide offer, but they do not detail the process for you selling or transferring your own franchise. For specific information on restrictions and requirements for selling or transferring your franchise, you would need to refer to Item 16 of the FDD or contact the franchisor directly.
On what grounds can the franchisor terminate the agreement?
The franchisor can immediately terminate the agreement if the franchisee violates or infringes on the intellectual property rights of another related to the Platform or OLO [p.540, p.534]. Additionally, the franchisor may also terminate the agreement based on competition grounds, even if the franchise agreement grants a territory, as the franchisor has the right to compete in the franchisee's territory [p.4].
What financial requirements — net worth and liquid capital — do I need to qualify?
The FDD does not specify exact net worth and liquidity requirements, but it indicates that these requirements depend on the number of stores to be developed or purchased [p.50]. Therefore, you would need to discuss specific financial requirements with the franchisor based on your planned expansion [p.51].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other channels of distribution or competitive brands controlled by the company. [p.53, p.52, p.51]
What training and ongoing support does the franchisor provide?
This isn't specified in the excerpts. The provided FDD excerpts do not detail specific training and ongoing support programs offered by the franchisor, except to mention that DPL acts as the manager for DPF providing required support and services to franchisees under their franchise agreements [p.502]. For more detailed information on training and support, you would need to review additional sections of the FDD not included in these excerpts.
How many franchised outlets are there, and how many have closed or been terminated?
As of December 29, 2024, there were 7,043 Domino's Pizza Traditional Stores (with 6,751 being franchisee-owned) and 25 Domino's Pizza Non-Traditional Stores (all franchised). The FDD does not specify the exact number of closed or terminated outlets, but it mentions a list on page [p.281] that includes franchisees who have left the system through termination, non-renewal, transfer, or other means.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance representations based on actual records of existing outlets if a prospective franchisee requests such information upon reasonable request [p.67]. However, the franchisor does not make any financial performance representations other than those included in Item 19 and does not authorize its employees or representatives to make such representations [p.67].
What am I restricted to selling, and where must I buy supplies?
You are required to offer for sale all products approved by the franchisor and make all menu items available for carry-out and delivery from the Store. You may not offer any unapproved products [p.58]. For supplies, you must purchase food ingredients, beverage products, cooking materials, etc., that meet the franchisor's standards and are typically required to be purchased exclusively from the franchisor, affiliates, or approved suppliers [p.36]. This includes items like paper and plastic products imprinted with the franchisor’s marks [p.36]. The franchisor may examine facilities of these suppliers and impose limitations on the number of approved suppliers for certain products [p.36].