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How Much Does It Cost To Open a Domino’s Franchise?

For Domino’s employees who are interested in becoming franchisees, understanding the pizza brand’s financial obligations and expectations is key.

By Victoria CampisiStaff Writer
Updated 6:18PM 02/19/24

If you've ever dreamed of owning your own pizza business, Domino's might come to mind as a potential franchise option. However, there is a caveat. At this time, Domino’s is only considering internal franchisee candidates. Additionally, these candidates must have at least one year of experience working as a Domino’s general manager or supervisor.

“We encourage those who are interested in franchising to follow the path of most Domino’s franchise owners and learn how to run and operate a store or supervise multiple stores before investing in their own,” the brand wrote on its franchise development page. 

Notably, more than 95% of Domino’s U.S.-based franchisees started off as part-time pizza makers or delivery drivers. If you’re a current team member, here’s what you should know about the costs associated with opening a Domino’s franchising before taking that step. 

The Investment

Domino’s does not publicly publish franchise investment costs on its website. However, Franchise Direct has published figures based on a review of the brand’s 2022 Franchise Disclosure Document. The estimated financial range for setting up and operating a Domino’s in the United States for the first three months ranges from $107,450 to $682,500, depending on store type. Domino's operates both traditional stores, primarily situated in shopping centers and non-traditional Stores, which can be found in office buildings, stadiums and airports. 

Costs include: 

  • Initial Fee: $10,000
  • Leasehold Improvements: $5,000-$300,000
  • Furniture, Fixtures and Equipment: $62,000-$145,000
  • Signage: $5,200-$35,000
  • Three Months of 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-$3,000
  • Insurance: $15,000-$65,000
  • Miscellaneous Opening Costs: $2,500-$7,000
  • Additional Funds — Three Months: $10,000-$73,000
  • Estimated Total: $107,450-$682,500

Like many franchises, the opening costs for a Domino's encompasses acquiring real estate, renovation or construction expenses, equipment, signage, and professional fees. The total initial investment varies based on real estate costs, store size, construction requirements and initial traffic. 

Other Fees To Expect

In addition to the initial investment, franchise owners should be prepared to pay: 

  • Royalty Fee: 5.5% of the store's weekly royalty sales.
  • Advertising Fund: 4% of the store's weekly royalty sales. Non-traditional stores may receive a partial credit or make a reduced contribution.
  • Advertising Cooperatives: 1-4% of the store's weekly royalty sales.

If you're ready to rise through the ranks and go the entrepreneurial route, take the first step by exploring internal opportunities with Domino's and securing your place in the thriving world of pizza. 

And at the 1851 Growth Club, we can help you find the right franchise for you at the right price point with your best interests at heart. Reach out today to start building your franchise legacy!



 

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