(Domino’s pizza business image courtesy of Wikimedia)
Domino’s Franchise Facts
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 units are franchises.
Additionally, 90% of the franchise owners started their careers as pizza makers and/or delivery drivers etc.
Finally, and this is big, Domino’s stores sell 3 million pizzas a day.
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)
A Business Glitch
It’s a fact that most 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:
Domino’s decided to offer a “30 minutes or it’s free” pizza delivery guarantee.
In other words, 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.
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.
Pizza Delivery Becomes Dangerous
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.
Then, 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 minute guarantee was dropped.
(Pizza image from Wikimedia)
Domino’s Franchise Costs
Here are the initial costs for a Domino’s franchise 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, franchisees cannot go below 51% ownership and they must oversee store operations personally.
Domino’s Theater Concept
Domino’s has come up with a new store design, 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 getting into the 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.
Domino’s Franchise Score
Furthermore, I suggest buying 3 or more units, so you can make a serious go of this franchise business opportunity.