Domino's Pizza Franchise
, ,

Domino’s Pizza Franchise Cost

Last Updated on December 11, 2022
Written by CPA Alec Pow | Content Reviewed by Certified CFA CFA Alexander Popinker

When it comes to ordering food online, pizza delivery is probably the most popular choice. Most of us choose to order pizza at home, at the office, or when visiting friends, simply because of its delicious taste. The crispy crust, the flavors of the toppings, and the easy way of serving make pizza one of the most famous food options.

With more than 1,000 stores around the world, Domino’s Pizza is the world leader in pizza delivery. Everywhere in the world, the Domino’s recipe is based on a unique, thin, tender, and crispy crust, left to ferment for at least 12 hours, 100% natural fresh milk mozzarella, tomato sauce without concentrates, and the freshest ingredients for toppings, mostly from local sources.

Domino’s recipes are clear proof that the taste of American pizza is a success regardless of culture, anywhere on the world map.

Domino’s Pizza Franchise History

Like any successful corporate business, Domino’s started as a small, one-store business in 1960. Tom Monaghan and his brother James bought DomiNick’s, a pizza shop in Ypsilanti, Michigan. They borrowed $500 for this purchase. The initial plan was to divide the working hours equally, but James did not want to give up his full-time job as a postman to work on the new business. After eight months, James offered his share in exchange for the car used for delivery, a Volkswagen Beetle.

You might also like our articles on the cost of getting a McDonald’s, Chick-Fil-A, or Popeye’s franchise.

In 1965, Tom changed the name to Domino’s Pizza.

Domino's LogoThe company’s logo initially had three dots; these represented the three restaurants that the company had opened. Tom planned to add one point for each branch opened, but the idea fell through quite quickly when the pizzeria began to expand rapidly.

In 1967, the company opened its first franchise location and by the end of 1978, the pizzeria already had 200 restaurants.

The first store outside the USA opened in 1983, in Canada, the year in which the network reached the threshold of 1,000 units. After six years, the 5,000th store was opened.

In 1996, a sales record of $2.6 billion was reached.

Tom Monaghan retired in 1998 and sold 93% of the company to Bain Capital.

In 2007, Domino’s Pizza was named for the ninth time in the top 10 best franchise opportunities.

At the beginning of 2009, the pizzeria started a rehabilitation program, which aimed to change the pizza recipes and improve the image of the franchise. Domino’s Pizza has embraced technology to make the ordering process much more efficient, customer-oriented, and perhaps cooler.

Today, the Domino’s network has over 19,000 stores opened worldwide! It is true that it took 60 years to reach this level, but it was definitely worth it.

Domino’s Pizza Franchise Initial Investment/Cost/Income

The initial investment for Domino’s Pizza Franchise would be anywhere between $120,000 and $470,000, and the franchisee fee is $25,000. Also, the franchisee must have a minimum of $75,000 in liquid cash available. The Domino’s Pizza franchise agreement is signed for a period of ten years and can be renewed. The royalty fee is 5.5%.

The advantages of a home delivery business such as Domino’s Pizza, are the low cost of investment compared to a traditional restaurant, a large number of internet users, especially among the young public, but also the fact that in most cities the neighborhoods are very dense and this makes delivery easier.

Other information about Domino’s Pizza Franchise

The franchisor helps to design the workspaces, so as to optimize the activity of the pizzerias as much as possible and offers a space management system – Pulse Domino – fully integrated, with online tracking of orders and customers. The licensor provides specialized training for franchisees and their employees and helps develop the individual marketing strategy throughout the year, tailored for each location (in addition, of course, to the network’s national advertising campaign). Partners can benefit from discounts and attractive offers.

Domino’s Pizza and Coca-Cola company signed an agreement to sell Coca-Cola items exclusively at its pizzerias.

Since 1973, Domino’s Pizza ensures the delivery of products in 30 minutes. If you pass this time, the product is offered for free, they said in the 70s. By the 80s, the free was replaced with a $3 discount. In 1992, the company lost a lawsuit and paid $2.8 million in damages after a delivery truck ended the life of a woman in an accident in the US state of Indiana. Another $15 million was paid out in 1993, also following an accident with a delivery truck that ran a red light.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *