How Much Does a Domino’s Pizza Franchise Cost?

There’s one question here that needs to be answered. Just how much does a Domino’s Pizza franchise cost? Also, what do you get for your money?

As a pizza chain, Domino’s operates via a franchise model, and it’s an approach that has led to amazing success around the world. By purchasing a franchise, you do improve the chances of setting yourself up for what could turn into a profitable business.

After all, you can use Domino’s name, branding and sell their pizzas. Everyone knows the name, and the news that a new Domino’s will open in an area remains something that makes people sit up and take notice.

That’s what we intend to look into right now.

But let’s get one thing straight. Owning a Domino’s franchise will not become an automatic guarantee of success. Also, it’s not always a straightforward transaction either. 

The problem is that a typical franchise takes on so many different facets, and that’s where you start to run into some difficulties. 

However, we intend to guide you through these problems as best we can over the next few minutes. 

dominos store front

The Answer

The answer is not as clear-cut as you would like to think. A franchise has different components that result in the entire business. Each component has its own cost, eventually leading to the final figure.

The problem is that Domino’s states you must have a certain amount of money to qualify as a franchise owner. They state you need $100,000 in liquid capital to start the ball rolling, but that’s not all.

By the time you add in everything required, including additional money to invest in the business, a Domino’s franchise could cost you in the region of $450,000.

Alternatively, some figures state that your initial investment could soar past $600,000.

But the picture can prove more complicated than that, so we will look at things in more detail to help you better understand.

After all, if you feel intrigued about owning a franchise, you should know where your money will go. 

The Franchise Deal

As we said, you need $100,000 in liquid capital and another $100,000 in net assets before purchasing a franchise. According to Domino’s, the total investment required varies between $119,700 and $461,450.

That means the investment varies considerably, but there’s another problem. You can find other sources that state the investment figure can exceed $600,000 in some instances. So it’s far more complicated than it needs to be.

But part of the reason the cost varies so widely is the type of store or franchise you want to buy. Yes, you have several options for something that should be as simple as choosing a store.

You see, this part remains a problem for most people. They think owning a franchise for the likes of Domino’s is easy and straightforward. They don’t realize that costs vary, locations change, and even the type of store you can take over can change.

But don’t worry, as we cover all of the different options and variations below to help you perhaps come to some decision regarding a possible franchise. 

dominos pizza store

The Two Domino’s Franchise Options

Typically, you have two options for a Domino’s franchise: the traditional pizza store or a non-traditional one. Believe it or not, but differences do exist.

The traditional pizza store refers to the most common form. It involves the franchise owner taking over a store and offering delivery or take-out.

It will be in a mall or a retail location where it’s easy for both customers and delivery drivers to park and enter the store.

This is the type of store we feel most used to, but it’s not the only option.

Domino’s also offers a franchise option involving a non-traditional store.

These non-traditional stores appear in less familiar locations such as in an airport, or even in a convenience store. Often, these options will only have take-out as an option, and you cannot really sit in there. Also, it doesn’t always need to have Domino’s pizza as its main business.

The Breakdown of Costs

Aside from those two different franchise options, Domino’s does effectively break down the different costs associated with launching your own Domino’s franchise. These figures do come with a high and a low figure, so it means you have some variation. 

Take the initial fee as an example.

They do offer discounts to people such as veterans. It could potentially lead to you paying no fee. Alternatively, you may have to spend $10,000.

But that’s not all.

You probably have to purchase furniture and fixtures, and fittings. That will vary from around $60,000 to potentially $150,000, which is a huge difference.

Then you have signage costing you from $5,000 to $35,000. But it doesn’t end there.

You have rent to pay, training staff, advertising and promotional costs of around $3,000, and even insurance costing you as much as $65,000.

They also suggest having the money to pay for the first three months running costs, so it all adds up.

By the end, you could end up spending, or requiring, over $600,000 to open up your Domino’s franchise and get everything running smoothly.

That’s a lot of money, but as we said earlier, you all have this huge name supporting you. That alone count for a lot.

You Might Not Manage to Just Buy One

But hold on a minute because Domino’s does things slightly differently from most companies operating a franchise method. 

Domino’s prefers that all of its franchise owners have had direct experience working with Domino’s.

They state that around 90% of their current franchise owners worked as team members elsewhere before they went ahead and took over their own franchise.

They state this approach works well for them. It means the individuals already know so much about how this particular business operates, which means a better chance for success. 

You see, it becomes very clear rather quickly that Domino’s does not offer too many ‘external opportunities’ when owning a franchise. They see it as more beneficial to the brand in general if individuals have spent time within the Domino’s family.

However, you may find, from time to time, that those external opportunities do arise. But don’t bank on them happening as your way into the market.

dominos pizza box

The Normal Path to Owning a Franchise

The best approach, which is also the fastest approach, to owning a Domino’s franchise is to apply to become a manager of an existing store.

However, it’s best to manage a store for at least a year before you even contemplate taking over a franchise of your own.

Once again, Domino’s will likely give your application the go-ahead because you now have that experience of what’s involved in running this type of business.

Sure your money may not have been involved in it, at this point, but you still know all about what goes on behind the scenes.

But even then, you have no guarantee of your franchise application going through and opening up a store where you want to open one.

Other Options?

You have a couple of options available to you for potentially taking over an existing franchise.

First, if you have previous experience of managing or owning a restaurant, then that could help when it comes to your application. However, we cannot state 100% that this will lead to success.

Another way is if you have business experience. If you do, it may get to the point where you can take over an existing franchise if the current owner wishes to move on with their life or retire.

In that scenario, you will stand a better chance of your franchise application succeeding. After all, the previous franchise owner did all the hard work establishing the business and building its market. 

If you can show you have business acumen, then it may mean your application will go through.

Overall Conclusion

Owning a Domino’s franchise requires a substantial sum of money, but it does come with a huge number of benefits. After all, you do have the name of one of the biggest pizza brands in the world above the door, and that counts for a lot.

However, it doesn’t come with a guarantee that your business will prove a success. Yet you stand a better chance of this happening than starting up many other brick-and-mortar style businesses.

If you love pizza and have the liquid capital available, owning a Domino’s franchise may prove to be a wonderful opportunity. At least you will have your pizza on tap as well.