(Domino’s franchise business image courtesy of Wikimedia)
Domino’s Franchise: Learn How To Open A Domino’s Pizza
Did you know that the Domino’s Pizza franchise is one of the largest pizza franchise businesses in the world? Check this out.
Domino’s (as of the second quarter of 2018), operated a network of more than 15,000 franchised* and company-owned stores in the United States and over 85 international markets.
*In the United States, 93% of Domino’s are franchises.
Additionally, 90% of the Domino’s Pizza franchise owners started their careers as pizza makers and/or delivery drivers etc.
And speaking of Domino’s Pizza owners, if you buy a Domino’s franchise, you’ll be provided with in-store and classroom training that’s focused on owning operating your franchise smoothly and profitably. That’s part of the cost of a Domino’s business.
Finally, and this is big, Domino’s stores sell 3 million pizzas a day.
So, do you think owning a Domino’s may be right for you? if so, I’m going to tell you about the cost of a Domino’s Pizza franchise-and more?
Domino’s Pizza History
If owning a Domino’s franchise is something you’re interested in, it would behoove you to understand the company’s history. Check this out.
The Domino’s franchise empire began in 1960, when Tom and James Tom Monaghan purchased “DomiNick’s,” a pizza place in Ypsilanti, Michigan. By 1965, Tom was the sole owner and renamed the business “Domino’s Pizza.”
By 1967, Domino’s Pizza became a franchise business, and (interestingly enough) the first franchise location opened its doors in…Ypsilanti, Michigan.
- By 1983, Domino’s was on a major roll.
- The 1,000th Domino’s store opened
- Domino’s first international store opened in Winnipeg, Canada
- The company opened their first Australian location
- And to top things off (pun intended) by 1995, Domino’s was the fastest-growing pizza company in the U.S.
(Domino’s delivery vehicle image courtesy of Wikimedia)
Domino’s Is An International Franchisor
One of the things that make this pizza franchise stand out is its massive international footprint.
To prove my point, take a look at this video showing the Domino’s Pizza toppings offered around the world, by popularity.
A Pizza Delivery Business Glitch
Without exception, fast-growing companies experience problems.
That said, sometimes these problems are larger than life-literally, as was the case with Domino’s, way back in 1973. Here’s what happened.
In a surprising move, Domino’s decided to offer a “30 minutes or it’s free” pizza delivery guarantee.
Specifically, if the Domino’s pizza delivery driver didn’t deliver your pizza to your home in 30 minutes or less (after ordering), your pizza would be free. I wonder how Domino’s Pizza owners felt about that promotion?
To be sure, the guarantee did help the Domino’s Pizza brand get known for it’s fast delivery. But it wasn’t without consequences.
Domino’s Pizza: 30 Minutes Or Less True Story
In 1992, an Indiana woman was killed by a speeding Domino’s delivery driver, and her family sued Domino’s. Domino’s lost the suit, and ended up paying the family $2.8 million.
Following that, a woman who was injured when a Domino’s delivery driver ran a red light and collided with her vehicle. She sued Domino’s in 1993, and was awarded almost $80 million (she ended up accepting $15 million). The end result? The “30 minutes or it’s free” guarantee was dropped.
Still Delivering Pizza
Even with the horrible things that happened, the team at Domino’s headquarters made the decision to remain in the pizza delivery business, but not with a “30 minutes or less” guarantee. In other words, they’re just more careful about how they go about doing it. And of course, how they word their guarantees, which I’m sure helps Domino’s Pizza owners sleep better at night.
(Pizza image from Wikimedia)
Next, I’m going to tell you the Domino’s Pizza franchise cost.
Owning A Domino’s Franchise: How Much Does A Domino’s Cost?
Here are the initial startup costs of a Domino’s business.
- Initial Investment: $119,950 to $461,700
- Liquid Cash Requirement: $75,000
- Franchise Fee: $25,000
- Royalty Fee: 5.5%
- Ad Fund: 3%+
Additionally, franchise owners cannot go below 51% ownership and they must oversee store operations personally.
Domino’s Earnings Update
From a Press Release dated April 29, 2021:
Domino’s Pizza, Inc. (NYSE: DPZ), the largest pizza company in the world based on global retail sales, announced results for the first quarter. Global retail sales increased 16.7% in the first quarter, or 14.0% excluding foreign currency impact. U.S. same store sales grew 13.4% during the quarter versus the year-ago period, continuing the positive sales momentum in the Company’s U.S. stores business. The international business also posted strong results, with same store sales growth of 11.8% during the quarter. The first quarter marked the 109th consecutive quarter of international same store sales growth and the 40th consecutive quarter of U.S. same store sales growth.
The Company had first quarter global net store growth of 175 stores, comprised of 36 net U.S. store openings and 139 net international store openings.
Domino’s Theater Concept
Domino’s franchising has come up with a new store design for franchise owners, and it’s sharp. Look:
All in all, Domino’s looks like it will continue dominating the delivery side of pizza.
In conclusion, if you’re thinking of owning a pizza business, and brand recognition is a major part of why you want to get into the business, Domino’s certainly has it. Plus, pizza is popular, and will remain so for years to come.
So, do you think a Domino’s franchise is right for you? Do you want to own a Domino’s Pizza franchise?
Domino’s Franchise Review: The Score
This pizza franchise is worth a look. Because:
1. Domino’s branding is off-the-charts.
2. This franchise business dominates pizza delivery-which makes their franchise owners happy.
Furthermore, I suggest buying 3 or more units, so you can make a serious go of this franchise business opportunity.
FAQ’s About Domino’s
Domino’s sells around 3 million pizzas a day.
Domino’s is one of the largest pizza franchise businesses in the world, with 15,000 franchised and company-owned stores around the world.
Domino’s opened their first franchise in 1967, in Ypsilanti, Michigan.
If the Domino’s pizza delivery driver didn’t deliver your pizza to your home in 30 minutes or less (after ordering), your pizza would be free.
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