Domino’s Pizza Franchise Cost: A Comprehensive Guide
Domino’s Pizza is one of the world’s leading pizza delivery chains, with over 18,000 stores in more than 90 countries. The company has been franchising since 1967, and today, over 90% of Domino’s stores are owned and operated by franchisees.
If you’re interested in starting a Domino’s Pizza franchise, there are a few things you need to know about the costs involved.
Initial Investment
The initial investment for a Domino’s Pizza franchise ranges from $119,000 to $450,000. This includes the cost of the franchise fee, equipment, inventory, and working capital.
- Franchise Fee: The franchise fee for a Domino’s Pizza franchise is $25,000. This fee gives you the right to use the Domino’s name, trademarks, and business model.
- Equipment: The cost of equipment for a Domino’s Pizza franchise can range from $100,000 to $200,000. This includes the cost of ovens, mixers, refrigerators, and other equipment needed to make and deliver pizzas.
- Inventory: The cost of inventory for a Domino’s Pizza franchise can range from $10,000 to $20,000. This includes the cost of ingredients, such as flour, cheese, and toppings.
- Working Capital: Working capital is the money you need to operate your franchise on a day-to-day basis. This includes the cost of rent, utilities, and payroll.
Ongoing Costs
In addition to the initial investment, there are also ongoing costs associated with owning a Domino’s Pizza franchise. These costs include:
- Royalty Fees: Domino’s Pizza franchisees pay a royalty fee of 5.5% of their gross sales. This fee is used to cover the costs of marketing, research and development, and other corporate expenses.
- Advertising Fees: Domino’s Pizza franchisees are required to spend a certain amount of money on advertising each year. The amount of money you need to spend on advertising will vary depending on the size of your market and the level of competition.
- Rent: The cost of rent for a Domino’s Pizza franchise can range from $2,000 to $10,000 per month. The amount of rent you pay will depend on the location of your store and the size of the space.
- Utilities: The cost of utilities for a Domino’s Pizza franchise can range from $500 to $1,500 per month. The amount of money you pay for utilities will depend on the size of your store and the climate in your area.
- Payroll: The cost of payroll for a Domino’s Pizza franchise can range from $5,000 to $15,000 per month. The amount of money you pay for payroll will depend on the number of employees you have and the wages you pay them.
Total Cost of Ownership
The total cost of ownership for a Domino’s Pizza franchise can range from $250,000 to $750,000. This includes the initial investment, ongoing costs, and the cost of financing.
Financing
Domino’s Pizza offers a variety of financing options to help franchisees cover the cost of their investment. These options include:
- SBA Loans: SBA loans are government-backed loans that are available to small businesses. SBA loans can be used to cover the cost of the initial investment and ongoing costs.
- Bank Loans: Bank loans are traditional loans that are available from banks and other financial institutions. Bank loans can be used to cover the cost of the initial investment and ongoing costs.
- Private Equity: Private equity is a type of investment that is provided by private investors. Private equity can be used to cover the cost of the initial investment and ongoing costs.
Conclusion
If you’re interested in starting a Domino’s Pizza franchise, it’s important to understand the costs involved. The initial investment can range from $119,000 to $450,000, and the ongoing costs can range from $25,000 to $75,000 per year. However, Domino’s Pizza offers a variety of financing options to help franchisees cover the cost of their investment.
