Domino's Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$10,000
Investment required
$107,000 - $744,000
Royalty fee
5.50%

Domino's: Pioneering Excellence in Pizza Delivery

Founded in 1960 and franchising since 1967, Domino's is based in Ann Arbor, Michigan. The brand is a powerhouse in the pizza delivery sector, known for its innovative methods and vast global reach. Domino's has developed a strong franchise system that promotes internal career advancement, with a large number of U.S. franchisees starting their careers as part-time employees within the company.

This distinctive model ensures that franchisees have a profound understanding and dedication to the company's values and operational standards. The franchise provides extensive training and support, helping franchisees in various operational aspects, from utilizing Domino's advanced technology to implementing effective marketing strategies.

Domino's commitment to community involvement and strong brand recognition further cements its status as a leader in the fast-food industry. U.S. franchisee candidates must have at least one year of experience as a general manager or supervisor within the company, reflecting the brand's focus on nurturing internal talent.

This strategy guarantees that franchisees are thoroughly familiar with Domino's culture and operational methods, maintaining consistent quality and service standards across all locations.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Domino's Pizza Store (Low) Domino's Pizza Store (High) Domino's Pizza Non-Traditional Store (Low) Domino's Pizza Non-Traditional Store (High)
Initial Fee $0 $10,000 $0 $10,000
Leasehold Improvements $25,000 $350,000 $5,000 $350,000
Furniture, Fixtures and Equipment $81,000 $145,000 $62,000 $136,000
Signage $5,200 $35,000 $5,200 $35,000
3 Month's Rent $3,000 $25,000 $3,000 $25,000
Security Deposit $1,000 $10,000 $1,000 $10,000
Opening Inventory and Supplies $2,750 $6,500 $2,750 $6,500
Opening Advertising and Promotion $0 $3,000 $0 $3,000
Training Expenses $1,000 $4,000 $1,000 $4,000
Insurance $25,000 $75,000 $15,000 $50,000
Miscellaneous Opening Costs $2,500 $7,000 $2,500 $7,000
Additional Funds – 3 Months $10,000 $73,000 $10,000 $73,000
TOTAL ESTIMATED INITIAL INVESTMENT $156,450 $743,500 $107,450 $709,500

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Number of units

2024
Franchised units

6,243

6,458

6,621

Company-owned units

375

286

288

Total units

6,618

6,744

6,909

Franchise Disclosure Document

Training 

Domino's prioritizes comprehensive training and education for its franchisees to ensure they are thoroughly prepared to manage a Domino's franchise effectively.

Here is an in-depth overview of the training programs offered to franchisees by Domino's:

Initial Training: New franchisees or controlling persons who have not previously opened a Domino's Pizza Store or Domino's Pizza Non-Traditional Store are required to enroll in and complete all necessary training programs and classes for store operation. These training sessions are scheduled at specific times and locations, with a reasonable fee charged for participation. All training must meet Domino's standards. Franchisees are responsible for their travel, living expenses, and any other associated costs during these programs.

Franchise Management School (FMS): Franchisees must complete various tracks of the Franchise Management School (FMS) to achieve Qualified Franchisee Candidate status. The training includes workbooks, manuals, online courses, and facilitator-led PowerPoint presentations. The FMS consists of several segments, including:

  • FMS - Admissions: Approximately 45-75 hours of online/classroom training in the candidate’s market.
  • FMS - Undergrad Class: About 8 hours per day over 3 days, held either in Ann Arbor, Michigan, or online.
  • FMS - Pre-Grad School: Approximately 45-75 hours of training in the candidate’s market.
  • FMS - Grad School: Around 8 hours per day over 2 days.

Territory Protection

Franchisees do not receive exclusive territory rights. Under the Development Agreement, they might encounter competition from various sources, including other franchisees, Domino's-owned outlets, or other distribution channels and competitive brands managed by Domino's. Franchisees are assigned a development area to establish their stores.

During the term of the Development Agreement, neither Domino's nor its affiliates will operate or grant a franchise for a store to anyone else within the designated development area, except the franchisee. However, specific locations, such as enclosed malls, institutions, airports, parks, sports arenas, convention centers, and other event venues, are not included in the development area.

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