Domino’s Pizza – Franchise Review

The Company

Tom and James Moaghan purchased “DomiNicks’s” Pizza in 1960 for $500.00. A short time later Tom traded a Volkswagen Beetle for his brothers half of the business, renaming it Domino’s. Since those humble beginnings in Ypsilanti, Michigan the company has grown to more than 8600 stores worldwide exceeding sales of $5.5 billion, making it the world leader in pizza delivery.

Tom has actively ran the franchise until he sold 93% of the company to the current owners, Bain Capital for a cool $1 billion in 1998, after 38 years of active management. The company has now started trading in the NYSE.

The Product

Domino’s offers a diverse menu options like pasta, baked sandwiches, wings, boneless chicken, salads, breadsticks, cheese sticks, a variety of desserts and of course, pizza, its primary product.

Domino’s provides customized and specialized pizzas which are available with a wide variety of crusts. All these can be delivered right to your door step. Orders are taken by phone or you can order online. Domino’s investment in online trading and delivery has even enabled them to have a real time pizza tracker that consumers can use to track in real time where the delivery is. Consumers are guaranteed delivery within 30 minutes or the food is free.

Advantages

  • Global Brand
  • International Presence
  • Proven business model
  • Supply chain systems
  • Incredible brand awareness
  • Strong Training and Support
  • Low start-up costs
  • Incentive Programs
  • Recession Resistant Market

Costs

  • Franchise Fee: $25,000.00 ($5,000.00 for honorably discharged veterans)
  • Total Investment: $118,000.00 – $460,000.00
  • Term of Agreement: 10 years / Renewable
  • Royalty Fee: 5.5%

Requirements

  • Net Worth: $250,000.00
  • Liquid Assets: $75,000.00
  • Minimum 51% ownership
  • Completion of training modules
  • Good Credit
  • No Bankruptcies

Domino’s has a proven track record of successful franchising. They have market domination in a strong market where 94% of the American population regularly consume pizza and BandarQ family trends support this franchise category.

Domino’s strongly support women, minorities and veterans with incentive programs and have strong community and charitable involvement.

Ranked #1 in America’s Top Global Franchises, Pizza Category, Chain of the Year, Megabrand and Top 50 Franchises for Minorities, Domino’s continues to show itself an industry leader.

When looking to start any business it is important, particularly considering today’s market, that you look for specific ways to cut minimize or reduce overhead and risk. Any business is going to have risk, but it is important to have a full understanding of the amount of investment, startup cost and “ROI” (Return on Investment).

Most people are not aware that 80% of ALL franchise endeavors fail in the first two to five years leaving large debts looming for years thereafter.

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