How Much Money Does Domino's Franchise Make

Domino's Pizza franchises sell pizza and other authorized products through delivery and carry-out services. Dominos' offers both traditional and non-traditional stores in thefood & beverage industry. Domino's started franchising in 2007.

The Chief Executive Officer of Domino's is Richard Allison Jr who has been in this position since July of 2018. Before this position he was the President of Domino's International from 2014 to 2018.

There are currently 6,157 Domino's stores in the U.S.5,815 are franchised operated, while 342 are company-owned. Throughout the world there are over 17,000 Domino's locations!

Domino's Pizza franchise fee for single stores ranges from $0 to $10,000 and is calculated by a number of considerations including the number of stores included in a development agreement and the duration of the development agreement.

Domino's Pizza Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business model, brand and rights to sell its products and services. The franchisee signs a contract (franchise agreement) with the franchisor to acquire the franchise and generally has a territory granted to operate. What is a Franchise?… More Cost:

The Total investment ranges from $144,450 to $582,500 for Traditional Store's (retail outlets primarily in shopping centers, strip centers, and similar retail locations with appropriate parking for delivery vehicles). Meanwhile, the total investment ranges from $101,450 to $573,500 for non-traditional stores (office buildings, shopping malls, stadiums. These stores usually only offer carry out service)

Domino's Franchise Cost Breakdown:

Initial Franchise Fee: $0 – $10,000
Lease Improvements: $25,000 – $225,000
Furniture, Fixtures and Equipment: $81,000 – $145,000
Signage: $5,200 – $35,000
3 Month's Rent: $3,000 – $25,000
Security Deposit: $1,000 – $10,000
Opening Inventory The value of the total finished and unfinished goods and materials the business holds for future sale. and Supplies: $2,750 – $6,500
Opening Advertising and Promotion: $0 – $3,000
Training Expenses: $1,000 – $3,000
Insurance: $13,000 – $40,000
Miscellaneous Opening Costs: $2,500 – $7,000
Additional Funds (3 months): $10,000 – $73,000

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Ongoing Franchise Costs and Fees:

Royalty Fee: 5.5% of store's weekly Royalty sales The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue.

License Fee: 10% of stores weekly gross sales

Pulse Initial Software Fee: $4,200

Annual Software Enhancement Fee: $611.34

Local Advertising Payment

Domino's Pizza has set up an advertising fund which is 4% of store's weekly royalty sales

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Domino's Pizza Sales The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue. Figures:

The financial data below is from the year ending in 2018 and shows the financial performance for both franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business model, brand and rights to sell its products and services. The franchisee signs a contract (franchise agreement) with the franchisor to acquire the franchise and generally has a territory granted to operate. What is a Franchise?… More stores and company-owned stores. "AWUS" presented below represents Average Weekly Unit Sales.

AWUS

	2014	2015	2016	2017	2018
Franchised	$15,693	$17,633	$19,370	$20,722	$22,045
Company-Owned	$17,745	$19,964	$22,050	$23,984	$25,314
Combined	$15,848	$17,633	$19,566	$20,958	$22,270

	2014	2015	2016	2017	2018
Average Weekly Unit Sales	<$10,000	$10,001 – $15,000	$15,001 – $20,000	$20,001 – $25,000	$25,001+
Total Variable Costs	81.4%	77.3%	75.4%	74.7%	74.2%
Total Cash Fixed Costs	21.5%	17.0%	14.5%	12.8%	10.8%
EBITDA	-2.9%	5.7%	10.1%	12.5%	15.0%

Key Insights from Sales Figures:

From 2014 Franchisee operated units had Average Weekly Unit Sales (AWUS) has increased from $15,693 (2014) to $22,045 (2018). The Franchisee's has seen consistent growth in "AWUS".

On a per year basis, the Average Unit Sales was over a million dollars per year! This was calculated by multiplying the AWUS by 52 for a year yielding $1,146,340 in average annual sales.

The last figure shown above shows the "EBITDA" percentage of these sales in which 5,175 stores were included in these calculations.

EBITDA is calculated by: Royalty Sales – Total Variable Costs – Total Cash Fixed Costs + Supply Chain Profit and Volume Discount Rebates

140 stores were in the <$10,000 Range (-2.9% EBITDA)

849 Stores were in the $10,001 to $15,000 range (5.7% EBITDA)

1,413 stores were in the $15,001 to $20,000 range (10.1% EBITDA)

1,205 stores were in the $20,001 to $25,000 range (12.5% EBITDA)

1,568 stores were in the $25,000+ range (15.0% EBITDA)

Domino's Pizza Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business model, brand and rights to sell its products and services. The franchisee signs a contract (franchise agreement) with the franchisor to acquire the franchise and generally has a territory granted to operate. What is a Franchise?… More Income Statement One of the major financial statements focused on a business's revenues and expenses in a particular period. It is also known as the profit and loss statement. The income statement includes the gross profit, earnings before tax, and net profit.Tax Returns: The forms a business makes on an annual statement of income and personal circumstances sent to the IRS to… :

Consolidated Statements of Income (In Thousands)

For years ended:	2019	2018	2017
Revenues:
U.S. Company-owned stores	$453,560	$514,804	$490,846
U.S. franchise royalties Fees paid by a franchisee to their franchisor in order to operate a franchise location. They are usually on a weekly or monthly basis. More and fees	$428,504	$391,493	$351,387
Supply chain	$2,104,936	$1,943,297	$1,739,038
International franchise royalties and fees	$240,975	$224,747	$206,708
US. franchise advertising	$390,799	$358,526	–
Total revenues	$3,618,774	$3,432,867	$2,787,979

Cost of sales The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue. :
U.S. Company-owned stores	$346,168	$398,158	$377,674
Supply chain	$1,870,107	$1,732,030	$1,544,314
Total cost of sales	$2,216,275	$2,130,188	$1,921,988

Operating margin	$1,402,499	$1,302,679	$865,991
General and administrative	$382,293	$372,464	$344,759
U.S. franchise advertising	$390,799	$358,526	–
Income from operations	$629,407	$571,689	$521,232
Interest A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate. In Vetted Biz, it is typically the additional rate of a loan a business buyer would pay off over time to borrow in purchasing a business. income	$4,048	$3,334	$1,462
Interest expense	$(150,818)	$(146,345)	$(122,541)
Income before provision for income taxes	$482,637	$428,678	$400,153
Provision for income taxes	$81,928	$66,706	$122,248
Net income	$400,709	$361,972	$277,905

Domino's Pizza Franchise Income Statement Key Insights:

Domino's Pizza is profitable When the earnings in a given period of time is more than the expenses in a business. business for the franchisor with a net income in 2019 of 400 million in 2019. The franchise has seen an increase every year in the past year of net income, in 2018 net income was 362 million and 2017 was 288 million.

Competition:

Domino's Pizza competes in the fast-food market against big brand companies such as Pizza Hut, McDonald's, Subway, and KFC.

Conclusion:

Domino's has both traditional and non-traditional locations to suit a variety of needs for potential franchisee's and allows you to open a store-front in different locations such as shopping malls, free standing units, and delivery only units.

While this may be the business for you, make sure to also check out other businesses offered on Vetted Biz and in Food and Beverage Industry.

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