Domino's franchise

Hassle-free business loans to start your Domino's franchise.

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In the highly competitive world of pizza retailing, Domino’s are the big boys on the block. In both sales and store numbers they are #1, well ahead of rivals such as Pizza Hut. 

Domino's business details

Domino’s began life in 1960 in Ypsilanti, Michigan as a single pizza restaurant. Today, the company is headquartered in Ann Arbor and operates in over 90 other countries. With more than 20,000 outlets globally, Domino’s are by far the largest pizza company in the world. They have offered franchise opportunities since 1967.

Domino’s at a glance:

  • Stores: More than 1300
  • Required Investor net worth: £250,000
  • Required investor liquid cash: £120,000
  • Min. investment: £120,000
  • Max. investment: £350,000
  • Standard franchise term: 10 years

Can I start a Domino's franchise?

You can get into a Domino’s pizza franchise for relatively low pounds and the minimum £120k liquid cash and £250k net worth requirements should not be an issue for many investors. However, you face a major roadblock if you have never worked for this company. Domino’s currently only offer new franchise licenses to entrepreneurs who have a minimum of one years’ experience working at a Domino’s store in a general manager or supervisor capacity. In other words, you need to be in this club to join this club, making it very difficult for outsiders to gain entry. Domino’s also expect franchisees to play a major role in the daily running and success of the store. This opportunity is not suitable for passive investment.

How much does a Domino's franchise cost?

Starting your own Domino’s pizza business can cost anywhere from £120,000 to £350,000 depending on the type and size of your operation – a cost range that ranks as low to high

Currently, Domino’s offer two types of franchise opportunity:

  1. Domino’s Pizza Traditional Stores are retail outlets located primarily in shopping centres, strip malls and similar retail locations with appropriate parking for delivery vehicles and customers. Domino’s Pizza Traditional Stores sell pizza and other authorised products through delivery and carry-out services.
  2. Domino’s Pizza Non-Traditional Stores sell Domino’s pizza and other authorised products and services at non-traditional locations, which include: Office buildings, shopping malls, stadiums, toll roads, airports, zoos, convenience stores and similar retail facilities. Domino’s Pizza Non-Traditional Stores typically offer only carry-out service.

The initial franchise fee ranges from £28,000 to £32,000. Military veterans may be eligible for a 20% discount off this cost.

After opening, you are required to pay an array of ongoing fees and charges. They include:

  • Royalty fee: 5.5% of weekly royalty sales
  • Advertising fund: 4% of weekly royalty sales
  • Advertising co-op fund: 1.4% of weekly royalty sales
  • PULSE initial license fee: £4,200
  • Third party vendor PULSE fees: £1,357 per year
  • Annual software fee: £743 per store after first year
  • Help desk fee: £44 per call, £28 per chat
  • Connectivity fee: £1,200 per year
  • Flex client fee: £150 per device
  • Annual application screening fee – hiring store level workers: £432 per year
  • Technology service fee: £0.355 per digital order
  • Credit card processing fee: £0.525 per transaction
  • Spanish language call centre fee: £3 per call
  • Transfer fee: £1,500
  • Carry out tracker bundle: £321
  • Server bundle: £3,354
  • Menu board client bundle: £403

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Estimated key costs to open a Domino’s franchise:

Key Costs GuideLowHigh
Franchise fee£28,000£32,000
Leasehold improvements£5,000£350,000
Furniture, fixtures, equipment£62,000£145,000
Signage£5,200£32,000
3 months’ 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£4,000
Insurance£15,000£75,000
Miscellaneous opening costs£2,500£7,000
Additional costs – first three months£10,000£73,000

Are Domino's franchises profitable?

Yes. Domino’s pizza restaurants typically generate profits of 10% to 20% of gross sales, giving potential net income to the franchise owner of £115,000 to £500,000 per year. This ranks as good to excellent and could recoup the typical Domino’s franchise investment of £419,000 in 5.8 to 4 years.

What is the failure rate for a Domino’s franchise?

Almost zero. The failure rate for a Domino’s franchise is 1% in year one, remaining at 1% by year three. This ranks as very low.

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What are the franchise territory policies for Domino's?

Franchisees do not receive an exclusive territory under the Traditional Store Franchise Agreement or the Non-Traditional Store Franchise Agreement. However, under a Traditional Store Franchise Agreement the franchisee is assigned an ‘area of primary responsibility’. The boundaries of this area are a one mile radius around the store, a one mile radius from a street intersection or a written description equivalent to a one mile radius, except in densely populated areas, where it will usually be a 1/2 mile radius. During the term of the franchise agreement, neither Domino’s nor its affiliates will operate or grant a new franchise for a store whose territory overlaps your area of primary responsibility.

The company may periodically adjust the boundaries in which your store offers delivery service to reflect changing market conditions, population changes and other relevant considerations.

What franchise resources does Domino's offer?

Domino’s support for franchisees includes:

  • Training: The franchisee must complete all training required to operate the store. All training programs will be held online or at times and places that Domino’s designates. Once franchisees have completed at least 12 consecutive months of recent successful management or supervisory experience within the Domino’s Pizza system, they will be required to complete the franchise pre-qualification process. If qualified, franchisees must complete all of the required tracks of the Franchise Management School (FMS) to obtain ‘Qualified Franchisee Candidate’ status. The company may also require franchisees to complete supplemental or additional training programs which it periodically may offer. Franchisees must complete any supplemental or additional training within one year from the date it is originally offered by the franchisor.
  • Marketing support: Domino’s provides promotional and other marketing support for their franchisees.
  • Third-party financing: Domino’s provides no financial support for investors seeking franchise funding. However, you may be able to obtain economical and flexible funding solutions from the many independent funders who provide business loans to franchise operators.

Why should you start a Domino's franchise?

Low start-up costs. Growing sales. Excellent profits. Almost zero failure rate. What’s not to like? The only dampener is the hoops you have to jump through to become a Domino’s franchise owner. However, maybe that’s what makes this franchise such a great opportunity – the business only works with investors who know how it works, which keeps results so high. Becoming a Domino’s employee to get necessary management experience could be well worth the effort.

What is the process for starting a Domino's franchise?

Unlike most other franchise operators, Domino’s currently demand that new franchise owners must have at least 12 months’ experience as a general manager or supervisor in one of their stores. If you’re interested in joining Domino’s as an employee to gain this necessary internal experience, you can learn more about the process here.

Secure franchise funding with Swoop

Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new pizza business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across the UK. Just tell us what you need and leave the rest to us.

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Testimonials

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

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