Domino's Franchise Costs, Fees & FDD

Year Business Began: 1963

Franchising Since: 1967

Headquarters: Ann Arbor, Michigan

Estimated Number of Units: 20,500

Franchise Description: The franchisor is Domino’s Pizza Franchising LLC. Currently, the franchisor is only granting franchises to applicants who have completed at least 12 consecutive months of recent successful management or supervisory experience within the Domino’s Pizza system. Franchisees operate a Domino’s Pizza store selling pizza and other authorized products through delivery and carry-out services. These are the franchise formats the franchisor employs:

1. Domino’s Pizza Traditional Stores are retail outlets located primarily in shopping centers, strip centers and similar retail locations appropriate parking for delivery vehicles and customers of the store. Domino's Pizza Traditional Stores sell pizza and other authorized products through delivery and carry-out services.
2. Domino’s Pizza Non-Traditional Stores sell Domino's pizza and other authorized products and services at non-traditional locations. These locations include office buildings, shopping malls, stadiums, toll roads, airports, zoos, convenience stores and similar retail facilities. Domino's Pizza Non-Traditional Stores will ordinarily offer only carry-out service.

Training Overview: Prior to applying for and obtaining our approval for the rights to franchise and operate a Domino’s Pizza store, the franchisee, as the controlling person, must complete all training required to operate the store. All training programs will be held online or at times and places the franchisor designates. Once franchisees have completed at least 12 consecutive months of recent successful management or supervisory experience within the Domino’s Pizza system, franchisees will be required to complete the franchise pre-qualification process. If qualified, franchisees will be required to complete all of the required tracks of the Franchise Management School (FMS) to obtain “Qualified Franchisee Candidate” status. The franchisor also may require that franchisees or their owners complete supplemental or additional training programs which it periodically may offer. Franchisees must complete this supplemental or additional training within one year of the time in which it is originally offered to franchisees by the franchisor.

Territory Granted: Franchisees may operate the store only at a location approved by the franchisor. Franchisees will not receive an exclusive territory under the Traditional Store Franchise Agreement or the Non-Traditional Store Franchise Agreement. However, under a Traditional Store Franchise Agreement the franchisee is assigned an “area of primary responsibility.” The boundaries of the area of primary responsibility will be inserted in the Standard Franchise Agreement when it is signed. The area of primary responsibility will generally be a one mile radius around the store, a one mile radius from a street intersection or a written description equivalent to a one mile radius, except that in densely populated areas, it generally will be a 1/2 mile radius. During the term of a Standard Franchise Agreement, neither the franchisor nor its affiliates will operate or grant a franchise for a store whose area of primary responsibility overlaps the area of primary responsibility. The franchisor may periodically adjust the boundaries in which the store offers delivery service to reflect changing market conditions, population changes and other relevant considerations.

Obligations and Restrictions: The store must always be under the on-premises supervision of the franchisee or the controlling person. The franchisee or the controlling person must devote his/her full time as manager of the store or to the management of other stores (or other related activities the franchisor has approved). Franchisees must offer for sale all products required by the franchisor and make all menu items available for carry-out and delivery from the store. Franchisees may not offer for sale any products that have not been approved. The franchisor can periodically change the types of authorized products and services.

Term of Agreement and Renewal: The term length for the initial franchise agreement is 10 years. If franchisees meet certain requirements, the agreement can be renewed for 10 years.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Fee	$0	$10,000
Leasehold Improvements	$5,000	$350,000
Furniture, Fixtures and Equipment	$62,000	$145,000
Signage	$5,200	$35,000
3 Month's Rent	$3,000	$25,000
Security Deposit	$1,000	$10,000
Opening Inventory and Supplies	$2,750	$6,500
Opening Advertising and Promotion	$0	$3,000
Training Expenses	$1,000	$4,000
Insurance	$15,000	$75,000
Miscellaneous Opening Costs	$2,500	$7,000
Additional Funds -3 Months	$10,000	$73,000
ESTIMATED TOTAL	$107,450	$743,500

Other Fees

Type of Fee	Amount
Royalty Fee	5.5% of store’s weekly royalty sales.
Advertising Fund	4% of store's weekly royalty sales. Non-traditional stores may receive a partial credit or make a reduced contribution.
Advertising Cooperatives	1-4% of store's weekly royalty sales.
PULSE Initial License Fee	$4,200
Third Party Vendor Pulse Fees	$1,357.04 annually.
Annual Software Enhancement Fee	$743.10 per store per year, after the first year.
Help Desk/Software Support Services	Currently $44 per call and $28 per chat.
Connectivity Fee	$1,200 per year.
Flex Client Fee	$150 per device.
Annual Service Fee for Application Processing for Store Level Positions	$432 annually.
Technology Transaction Fee	$0.355 per digital order.
Credit Card Processing Fee	$0.0525 per transaction.
Spanish Language Call Center Program Fee	$3.00 per call.
Inspections	Will vary under circumstances.
Audit Expenses	Cost of audit, charges of employees, understatement plus 1.5% interest per month.
Transfer	$1,500
Training Fees	Maximum cannot exceed $1,000 per session.
Interest on Late Payments	Lesser of 1.5% per month or highest legal rate for open account business credit in the state store.
Charges for Testing and Evaluation	Will vary under circumstances.
Indemnification	Will vary under circumstances.
Costs of Enforcement/ Non-Compliance	Will vary under circumstances.
Carryout Tracker Bundle	Currently $321.73 but could increase if costs increase.
Server Bundle	Currently $3,354.06 but could increase if costs increase.
WAP & Meraki MX64 License	Currently $280 per year but could increase if costs increase.
Meraki Router/ WAP Bundle	Currently $621.79 but could increase if costs increase.
EMV Credit Card Reader Kit	Currently $537.95 but could increase if costs increase.
Flex Client	Currently $313.08 but could increase if costs increase.
Menuboard Client Bundle	Currently $403.19 but could increase if costs increase.

The above information has been compiled from the FDD of Domino’s. Year of FDD: 2024.

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