In 1960, Tom Monaghan, along with his brother James, bought “DomiNick’s” Pizza in Ypsilanti, Michigan, for $500, which he borrowed. That next year, Tom traded his brother a Volkswagen Beetle for his half of the company and renamed it, “Dominos”. Today, Domino's Pizza is the recognized world leader in pizza delivery. Domino's operates in more than 50 countries and boasts a network of 8,366 franchised and Company-owned stores worldwide. Domino's Pizza is a “Megabrand” with approximately $5.1 billion in global retail sales in 2006, including $3.2 billion domestically and almost $1.9 billion internationally. Domino’s Pizza offers a proven business model in a proven market creating a win-win investment opportunity, with 93% of Americans eating at least one Pizza per month (Source: Bolla Wines).
Background and Benefits
Every year since 2004, Entrepreneur Magazine has rated Domino's Pizza “the best franchise opportunity in the pizza category.” Domino’s Pizza offers qualified veterans a whopping 80% off the franchise fee and has additional benefits for minorities and women owners. Domino’s strong business model comes with a profitable value-added distribution system. Domino's also provides an opportunity for each local market to pool funds and optimize local marketing opportunities by becoming part of a co-op advertising program. Domino's Pizza utilizes a national advertising firm to help local franchise groups effectively market their area.How Much Does a Domino's Pizza Franchise Cost?
Franchisees at Domino’s Pizza fall into one of two categories: internal or external. Internal franchisees have already worked within Domino’s as a General Manager for at least one year. External franchisees have not previously worked with Domino’s as a General Manager, but do bring outside business or other management experience to the table. For the first group the franchise fee is $0 to $25,000 depending of the social segment (woman, minorities, veterans). For External franchisees, the fee is set at $25,000. Domino's Pizza offers a comprehensive training program covering store operations, marketing, finance, and human resources. Training consists of a five-day Franchise Development Program and four-days of Pizza Prep School. Both are held in Michigan.
What We Like
Woman, minorities, and veterans get a big break when purchasing a Domino’s Pizza Franchise offering both groups deep discounts on the franchise fee. Financing is available to everyone, however, through Domino’s designated lenders’ finance programs that were specifically created for the restaurant industry. With statistics showing, 94% of the population of the U.S. eat pizza regularly (Source: Parade Magazine), along with around 3 billion pizzas sold in the US each year, family trends favor this category of franchise.
Pros
- Special Incentive Programs - VetFran Participant, MinorityFran Participant and Women's Programs available.
- Recession Proof Market - Pizza-eating actually increases in recessive markets.
- Established Branding - Domino's offers unsurpassed name recognition and National Advertising Support to boost local awareness.
Cons
- Outside Business Interests - Domino's does not allow the franchisee to have business interests outside the franchise location.
- Ownership Structure - owners cannot slip below 51% ownership and must oversee store operations personally.
Domino's Franchise Information
Business Established: 1960Start-up Cost: $0 to $25,000
Total Investment: $118,500 to $460,250
