Learn About Owning a Domino’s Pizza Franchise
Domino’s is one of the leading brands in the delivery pizza industry. Do you want to learn everything about domino’s franchise application procedure before starting a new business? Keep on reading for the opportunities, requirements, training, cost, profit and more about Domino’s Pizza.
Information About Domino’s Pizza
Domino’s Pizza was established in 1960 and started with just one store in Michigan. The first store was bought by $900 and the name was Domi-Nick. The business renamed as Domino’s Pizza by 1965.
The first Domino’s Pizza franchise opened in 1967 in Michigan. In ten years, in 1978, 200th Store and it reached to 1000th Store in 1983. The same year, Domino’s first international franchise opened in Canada and after Australia. Internationalization was followed by UK, Japan, Colombia etc. In other words, at the beginning of the 1980s, the Company developed an international strategy. In 1989, there was 5000 Domino’s Pizza Store in the world and 1000 of them was a franchise.
In the beginning of the 1990s, the Company focused on new technology, innovation and marketing. By 2006, the Company had 5000 Stores in the US and 3000 international stores. The company has open approximately 1000 Stores per year. By 2017, The Company has 14,000 stores all over the world. By the third quarter of 2018, it reached to 15,300 in the US and more than 85 international markets. The Company developed online ordering in 2007 and it is the main source of the orders today.
The franchise formats Domino’s Pizza
We can mention about four main formats of Domino’s Pizza franchises.
- Traditional Stores: They are retail outlets located in shopping centers or similar retail locations. These locations should be appropriate for delivery vehicles as well as customers. These Stores produce and sell products through delivery and carry-out services.
- Non-Traditional Stores: These stores are located in non-traditional places like office buildings, shopping malls, airports, convenience stores etc. These Stores mainly has carry-out services. Sit-down facilities are optional and depending on the location.
- Transitional Stores: In these stores, the menu is designed depending on the location. They operate in certain and selected markets where potential customers are fewer. As understood by the name, it is a transitional model where the Store expected to become a Traditional Store. This opportunity exists when the franchisee converts its carry-out service to full delivery service.
- Licensing: The franchisor may issue licenses to large public facilities like stadiums. This license allows them to sell brand’s products for carry-out service.
Why Should I Choose Domino’s Pizza Franchisee?
Domino’s Pizza has an understanding of teamwork which is the main locomotive of the success. The central issue for the Company is building strong teams to maintain its leading role in the delivery pizza industry. There are significant points that make Domino’s a good start.
- Domino’s is the fastest growing brand in pizza delivery showing the increasing demand by years and Company’s success in the international area.
- The company never stops innovation in products. Not only new pizzas but also new sandwiches, desserts and more are available each year.
- Domino’s continues to shape and drive the industry using the best and the most effective technological applications and marketing strategies.
- The Company has great support to all franchisees that is critique in maintaining the quality of the products. Domino’s offers in-store and classroom training for all new members. Moreover, you get support in the Store focusing especially on your operations and your business.
- As an owner of the Domino’s, you will contribute to charities, non-governmental organizations etc.
- Whenever a member experience hardship and adversity, the Domino’s Pizza Partners Foundation financially aids.
- The economic model of the company built on cash-on-cash returns. The model also enables profit sharing programs. Parallel to this, domino’s franchise owner salary increases with profit increases.
What Should I Do?
Before investing your own store, you are advised to learn the way of operating the store by working in a Domino’s Store. The Company highly supports internal candidates while there are only limited opportunities. You should fill the online form to get more information.
You should find an appropriate site. You can find the details below.
As a franchise, you are not expected to involve in direct operations of the Store. If this is the case, there should be a Controlling Person devoting her full time to manage the Store.
You must offer all the products required by the Company. Moreover, you are not allowed to sell products not approved.
What Are The Qualifications For Domino’s Store?
You can operate the Store only at sites approved by the Company.
Under traditional store franchise, the criteria for the site are defined as:
- The land should be between 0.3-0.75 acres.
- Traffic count should be approximately 20,000 per day.
- 3,000- 15,000 households should locate in a three-mile radius.
- There should be a minimum of 15 parking spaces for customers and delivery vehicles.
- High visibility and use of necessary signs.
The size of the building expected to be between 1,200-3,000 feet. Moreover, it should satisfy the necessities of electric, gas, and water defined by Agreement.
Under this agreement, the Store generally has an area of primary responsibility. The boundaries are defined in the Franchise Agreement, but generally, it is a 1-mile radius around the Store. For highly dense areas, it may reduce to a 0,5-mile radius.
The initial agreement has a 10 years term for Traditional and Non-Traditional Stores; and 5 years for Transitional Stores. If franchisee meets the qualifications, the agreement can be renewed by 10 years for the first types and 5 years for the second type.
Training and Support
Franchisees or controlling person should complete all the training programs offered by the Company. The type and duration of the programs depend on whether the franchise is internal.
If you have experience at Domino’s system for at least 12 consecutive months as a management or supervisory position and completed Domino’s Pizza High-Performance University Crew and Manager Development Programs; you are required to complete franchise pre-qualification process. Once qualified in this program, you are expected to complete all the required tracks of the Franchise Management School (FMS) and obtain a Qualified Franchise Candidate status.
If you are an external franchisee or do not have sufficient experience in the system yet; you are required to succeed in training in the use of Domino’s PULSE. The training program includes two-days on-site training program and the fee is approximately $1,500. Additional required courses may also be offered.
Costs and Fees
The initial fee of the Domino’s is one of the cheapest among other pizza franchise cost. The initial fee is up to $10,000. The total investment necessary at the beginning is ranged between $100,000 to $400,000 depending on the location, size, design etc. of the Store. This includes insurance, equipment, opening day expenses, additional expenses for first 3 months etc.
You should pay 5,5½ of the weekly Royalty Sales as Royalty fee and 4% of it as advertising fund. You are also paying for connectivity, help desk support, yearly software enhancement fee, menu management etc. These are on average $200 per month.