How to Start Domino’s Franchise In USA ?

Overview

For growth-driven entrepreneurs looking to expand, the best option to consider is owning a profitable franchise. When you own a franchise, you don’t have to worry about its success as it already has a good reputation in the market.

Additionally, it also mitigates the risk that comes with any new business venture. If you’re interested in grabbing a profitable franchise opportunity, opening a Domino’s franchise could be the ideal project. The company has a strong reputation and presence in the US and worldwide. So, if you’re wondering to boost your business career with Domino’s, having a better understanding of the business plan, required investment, and fees is the most crucial step to follow.

In this article, we will cover all the key topics related to the specifics of starting a Domino’s franchise in USA, including initial investments, fees, corporate assistance, structure, and more. Having access to all of this information will enable you to decide for yourself if owning a Domino’s franchise in USA is the right move for you.

Domino’s began as a small pizza shop in Michigan in 1960 and has since grown to become one of the biggest pizza-selling restaurant chains in the US and the world. The company expanded swiftly, and today it is a recognized global brand with more than 17,000 franchise locations in the United States and on six continents in 90 different countries.

From a single-serve pizza menu, the company expanded to include a variety of sides and appetizers, including buffalo wings, breadsticks, desserts, and more.

Additionally, they have incorporated technology into their business, making it simple for customers to order and track their pizzas via the Domino’s app. They frequently introduce customer service programs, including their brand-new “Delivery Insurance,” which are well-liked by clients and help build a solid customer base.

The franchisees hold approximately half of all Domino’s locations. When it comes to franchising, Domino’s significantly prioritises internal candidates and often has stricter restrictions for outsider candidates.

The company’s franchise agreements also have a ten-year term. Therefore, understanding the corporate structure and goals of a potential franchise is one of the keys to choosing the best restaurant franchise opportunity for you. Before applying for a Domino’s franchise in US, understand as much as possible about the company, including the expenses, corporate assistance, and your obligations. Also, make sure to carefully read the franchise disclosure document (FDD).

Read More: How to Start Pizza Hut Franchise In USA ?

Types of Franchise Models

When researching Domino’s franchise options, you may have gone through various franchise models offered by the company. These models are developed with the intention to cater to every sort of entrepreneur.

Additionally, your initial investment, overall costs, and the business’s location will depend on the type of Domino’s franchise model you choose. Currently, the fast-food giant offers three franchise models in the USA:

Traditional Store

These are retail establishments similar to the ones you are most used to, frequently in malls or other retail hotspots, with plenty of parking for both customers and delivery drivers. They provide delivery, carryout, and in-store dining.

Non-traditional Store

You find these stores inside larger locations, such as malls, offices, stadiums, etc. Although some of them have a few seats inside, they frequently just provide carryout.

Transitional Stores

These establishments cater to a smaller clientele by having more condensed, tailored menus and being situated in smaller marketplaces. They started as carryout-only establishments but could change to traditional stores if the market is established.

Cost & Capital Requirement

Wondering how much it costs to own a Domino’s franchise in USA? There are several different expenses, such as one-time, upfront expenses and recurring charges like the franchise royalty fee.

The principal prices are covered here. However, remember that these figures only represent averages or estimations.

One-time/Fixed Costs

Initial Investment/cost: $145,000 – $500,000.

Initial franchise fee: $10,000

Net worth: $250,000

Cash liquidity: $75,000

Read More: How to Start Burger King Franchise in USA ?

Ongoing Fees

Royalty Fees: 5% of a store’s weekly gross sales

Marketing and Advertising Fees: 3% to 4% of your store’s weekly gross sales or higher

Estimated Initial Investment

CostLowHigh
Initial Franchise Fee$0$10,000
Furniture, Fixtures and Equipment$62,000$145,000
Leasehold Improvements$5,000$300,000
3 Month’s Rent$3,000$25,000
Signage$5,200$35,000
Security Deposit$1,000$10,000
Opening Advertising and Promotion$0$3,000
Opening Inventory and Supplies$2,750$6,500
Miscellaneous Opening Costs$2,500$7,000
Insurance$15,000$65,000
Additional Funds – 3 Months$10,000$73,000
Training Expenses$1,000$3,000
ESTIMATED TOTAL*$107,450      $682,500
Note: The initial investment range includes both traditional and non-traditional stores.

Fixed Fees

Fees/ExpensesAmount
Royalty Fee5.5% of the store’s weekly royalty sales.
Advertising Fund4% of the store’s weekly royalty sales
PULSE Initial License Fee$4,200
Advertising Cooperatives1-4%
Annual Software Enhancement Fee$674.01 per store per year, after the first year.
Third Party Vendor Pulse Fees$908
Help Desk/Software Support Services$44 per call and $28 per chat.
Flex Client Fee$150 per device.
Connectivity Fee$1,200 per year.
Technology Transaction Fee$0.295 per digital order.
Annual Service Fee for Application Processing for Store Level Positions$412.50 annually.
Credit Card Processing Fee$0.0475 per transaction.
InspectionsVaries
Spanish Language Call Center Program Fee$3.00 per call.
Audit ExpensesCost of audit, plus 1.5% interest per month.
Interest on Late Payments1.5% per month
Transfer Fees$1,500
Training FeesMaximum cannot exceed $1,000 per session.
Charges for Testing and EvaluationVaries
Costs of Enforcement/Non-ComplianceVaries
IndemnificationVaries
Carryout Tracker Bundle$300.98
WAP & Meraki MX64 License$250 per year
Server Bundle$3,231.46
Meraki Router/WAP Bundle$621.29
Flex Client$292.99
EMV Credit Card Reader Kit$484.49
Menuboard Client Bundle$378.53
Note: The abovementioned details were taken from Domino’s FDD: the Year 2022.

Reasons Why Owning A Domino’s Franchise In USA A Profitable Idea?

As a global brand, Domino’s Pizza gives a chance to all entrepreneurs to grow with the company. Additionally, it also offers many benefits and privileges.

Strong Brand Presence

Domino’s is the world’s largest Pizza brand and one of the most well-known consumer brands in the world. The company continues to strengthen its brand through substantial television, radio, print, and online advertising.

Consumer-Focused Menu

The fast food giant vigorously tests new menu items and promotions with the help of its franchisees to ensure long-term success.

Advanced Technology

Domino’s Pulse increases operating efficiency using web-based reporting, labour management tools, online ordering, and a leading point-of-sale system that delivers operational results.

Training and Assistance

For new and existing franchisees, Domino’s provides in-store and classroom training as well as assistance that focuses on your operations and your company.

Franchisees are required to undergo a five-day franchise development programme and a four-day pizza prep school at Domino’s corporate headquarters. Franchisees will also go through six to eight weeks of in-store training.

Community Participation

In addition to local charities, schools, and organizations, Domino’s Pizza supports St. Jude Children’s Research Hospital, a nationwide partner in charitable giving. In addition, Domino’s Partners Foundation provides financial support to team members through difficult times.

Minority and Veteran Discounts

There are chances for veterans, minorities, and female candidates to obtain considerable savings on the initial franchise fee and opening expenses. This is also applicable for internal applicants with a year of management experience.

Application Process

To apply for Domino’s Franchise in USA, the only official way to do so is by visiting the official website of Domino’s Pizza LLC. It is th parent company of Domino’s Pizza and the official franchisor.

  • Visit the official website and search for ‘Domino’s Franchise’, and you will be presented with a form.
  • Fill out the application form and submit it. The company will run several background checks. It may take 5-6 weeks.
  • Following the approval, you will be contacted by the concerned team.
  • Sign the contract and undergo a mandatory training program.

Read More: How to Start A Starbucks Franchise In USA ?

Financial Support

Financing is the first and the top most requirement of every business. This can cover all key expenses as well as upfront charges like the franchise fee and furnishings.

Like many other franchises, Domino’s doesn’t provide direct or indirect financing for their franchisees. As a result, you’ll have to search elsewhere for funding.

In this case, third-party lenders are frequently a wise choice as they offer loans such as personal business loans, term loans, equipment finance, and more.

You’ll be more likely to get a business loan if you have a solid financial profile, such as good credit and any other relevant company experience. The amount of funding you will be given will also be influenced by these qualifications.

Conclusion

There are several benefits to owning a Domino’s franchise in USA. As with any franchise, you should be sure to ask for the complete franchise disclosure document so you are fully aware of the most recent costs you are paying and all the requirements.

Be aware that Domino’s provides a significant priority to internal applicants who wish to open a franchise. However, suppose you’re an outside applicant who is seriously interested in a Domino’s franchise. In that case, we suggest you start your career as a Domino’s employee first and then apply for a franchise. It will help you understand the daily routine & the working process of the company.

In either case, throughout your research process, be sure to talk to as many current and past Domino’s franchisees to get a sense of what your experience would be like. In addition, there are many alternative food franchises to look into if you decide Domino’s isn’t the perfect business for you.

FAQ’s

Is Domino’s A Chain Or A Franchise?

How Many Domino’s Restaurants Are Franchised?

How Much Does It Cost To Own A Domino’s Franchise In USA?

What Is The Domino’s Pizza Initial Franchise Fee?

How Much Money Can You Make Owning A Domino’s Franchise In USA?

Does Domino’s Offers Special Incentives To Franchisees?

What’s So Special About Domino’s Pizza?

How Can I Apply For Domino’s Franchise In USA?

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