Franchise Deep Dive: Domino's Pizza Franchise Costs, Fees, Profit and Data

Here’s what you need to know about franchising with one of the world’s most iconic pizza delivery brands.

By Victoria CampisiStaff Writer

8:08AM • 04/12/24

LAST UPDATED: 2/2024

FRANCHISE WEBSITE: https://biz.dominos.com/about-us/franchising/

NUMBER OF LOCATIONS: 20,000+

REPORTED COST TO GET IN: $145,000 to $500,000.

REPORTED ROI (Item 19): N/A

Domino's Pizza is a multinational pizza restaurant franchise that follows a quick-service restaurant (QSR) format. Notably, Domino’s follows an internal franchising model in which franchisees start off as team members in the Domino’s system.

How Many Domino's Pizza Locations Are There?

Since its humble beginnings in 1960 in Ypsilanti, Michigan, Domino's Pizza has emerged as a global powerhouse in the pizza delivery industry. In just over 60 years, the company has achieved remarkable milestones, including expanding internationally with stores in Canada and Australia in 1983, introducing new products like Handmade Pan Pizza and Buffalo Wings in 1989 and 1994 respectively, and going public on the New York Stock Exchange in 2004.

Domino's has continually innovated its offerings, including online and mobile ordering in 2007 and the groundbreaking Domino's Tracker in 2008, which allows customers to monitor their orders from placement to delivery. Most recently, in 2022, Domino's announced its plan to electrify pizza delivery with the rollout of over 800 electric vehicles, solidifying its position as a leader in both technology and customer service within the pizza industry.

As of March 2024, Domino's has extended its global reach to include more than 90 international markets serviced by more than 20,000 stores.

What Is The Domino's Pizza Business Model?

Domino's QSR pizza business model focuses on franchising, internal development of franchisees, and providing support to ensure the success of its franchise operations worldwide.

Internal Franchise System: Domino's emphasizes internal growth for franchise ownership, nurturing employees from entry-level positions like pizza makers or delivery drivers to franchisees. The brand says this approach fosters a culture of excellence and ensures franchisees are well-versed in Domino's operational standards and values.
Franchisee Qualifications: To become a franchisee in the U.S., individuals must typically have at least one year of experience working as a Domino's general manager or supervisor. This requirement ensures that franchisees have a solid understanding of the operational aspects of running a Domino's store.
Franchise Support: Domino's provides support and resources to franchisees, including training programs, operational guidance, marketing support, and ongoing assistance to help ensure the success of their franchise operations.
Global Expansion: Domino's also offers franchising opportunities outside the U.S. through its "Around the World" program, allowing individuals in other countries to become franchisees and operate Domino's stores in their respective regions.

Here's an overview of Domino's real estate specifications and requirements:

Real Estate Specifications:

Domino's is seeking outparcels, endcaps, inline spaces, and land for its next locations.
Land size: 0.3 - 0.78 acre
High visibility and traffic count: 20,000 ADT (variable by market)
Targeted households: 3,000-15,000 within a three-mile radius
Parking: Minimum of 15 spaces for customer and delivery vehicles
Requirement for a pole sign or dedicated pylon sign allotment

Building Requirements:

Building size: 1,200 - 3,000 square feet
Electrical: 3 Phase, 400 amp service to the main panel as required by code
HVAC: 1 ton per 150 square feet
Gas: 2" line/1.1 million BTUs
Water: 1" line (minimum)
Desirable features include high, open ceilings, large signs, illuminated awnings, and dedicated trash enclosure.

Lease Terms:

10-year base term with two 5-year options
No percentage rent agreements

How Much Can Domino's Pizza Owners Make?

Earnings for Domino’s Pizza franchise owners are not publicly available. However, SharpSheets estimates that a Domino’s franchise restaurant makes $1,286,000 in sales per year on average.

How Much Does It Cost to Open a Domino's Pizza Franchise?

The initial investment varies depending on the location and type of Domino's store franchisees want to open, according to NerdWallet. On the lower end, it can be around $145,000, while on the higher end, it can exceed $500,000.

Franchisees need to have a net worth of at least $250,000 to qualify for a Domino's franchise, as well as liquid capital of at least $75,000.

Ongoing Fees: Franchisees are responsible for ongoing franchise fees, including a royalty fee and a marketing and advertising fee.

Royalty Fee: The franchise royalty fee is approximately 5.5% of a store’s weekly gross sales.
Marketing and Advertising Fee: Franchisees can expect to pay around 3% to 4% of their store’s weekly gross sales for marketing and advertising supported by the corporate office.

What Is the Franchise Fee for Domino's Pizza?

The initial franchise fee for building a new store or refranchising a closed store is $10,000, according to NerdWallet. Additionally, Domino's may charge a "reservation fee" of $25,000.

Who Are the Leaders of Domino's Pizza?

What Helpful Articles Can I Read to Learn More?

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