Franchise Costs: Detailed Estimates of Domino’s Pizza Franchise Costs (2017 FDD)

This post was updated on May 29, 2017 to reflect information from Domino’s Pizza’s 2017 FDD (Item 7).

Detailed Estimates of Domino’s Pizza Franchise Costs Based on Item 7 (Estimated Initial Investment) of Domino’s Pizza’s 2017 Franchise Disclosure Document

For a Traditional Store

1.  Initial Fee:  $0 to $25,000

• The Initial Fee for single Stores ranges from $0 to $25,000. The Initial Fee due under a Development Agreement is calculated based on a number of considerations, including your prior management or supervisory experience in the Domino’s Pizza System, the number of Stores included in a Development Agreement, and the duration of the Development Agreement.

2.  Leasehold Improvements:  $25,000 to $225,000

3.  Furniture, Fixtures, and Equipment:  $81,000 to $145,000

4.  Signage:  $5,200 to $35,000

5.  3 Months’ Rent:  $3,000 to $12,000

6.  Security Deposit:  $1,000 to $4,000

• You must lease an appropriate site, subject to the franchisor’s approval of the lease prior to your execution of the lease. Generally, the leases are for 5 years with an option to renew for 5 years. The term and renewal of leases for Domino’s Pizza Non-Traditional Stores will be subject to negotiation but may be three (3) years or less, subject to renewals or extensions by the parties.

• The amounts specified for leasehold improvements, security deposits on a lease, and rent are based on the franchisor’s business experience. These costs depend on the size, condition, and location of the leased premises, and the costs the landlord assumes.

• You may hire any party for site selection assistance or may conduct site selection yourself.

7.  Opening Inventory and Supplies:  $2,750 to $6,500

• Other than as described in Items 7 and 8, you may purchase or lease original equipment and supplies, signs, and opening inventory meeting the franchisor’s standards from any approved source, including Domino’s Pizza Distribution LLC (DPD). The purchase or lease payments are made to either DPD or other suppliers.

• The franchisor does not require you to purchase or lease delivery cars and therefore these costs are not included in this Item.

8.  Opening Advertising and Promotion:  $0 to $3,000

• This amount is for opening advertising and promotion and does not include Advertising Fund or cooperative contributions.

9.  Training Expenses:  $500 to $1,700

10.  Domino’s PULSE Training Expenses:  $1,200

• Training expenses include fees for training materials for each session required for all new employees, manager candidates, managers, and prospective franchisees.

• Domino’s PULSE Training may be required for prospective franchisees who do not have sufficient experience in the use of Domino’s PULSE.

• The travel expenses are the participant’s responsibility.

11.  Insurance:  $9,000 to $17,000

• The franchisor estimates that annual insurance premiums for a Domino’s Pizza Traditional Store will range from $9,000 to $17,000; from $6,000 to $17,000 for a Domino’s Pizza Non-Traditional Store; and from $6,000 to $17,000 for a Domino’s Pizza Transitional Store.

• However, this cost may be significantly higher depending on the state coverage requirements, store location, and your loss history.

12.  Miscellaneous Opening Costs:  $2,500 to $7,000

• The Miscellaneous Opening Costs are the franchisor’s best estimate of the costs and deposits for and installation of telephones, connectivity, internet, deposits for gas, electricity, and related items. These are paid as incurred to various utilities and suppliers.

13.  Additional Funds – 3 Months:  $10,000 to $60,000

• This item estimates your initial startup expenses for 3 months and assumes you pay the maximum estimated figure for monthly rent. This item does not include ongoing inventory purchases, royalty or advertising payments, or the cost of any financing interest or amount of debt service obligation.

• These figures are estimates and the franchisor cannot guarantee that you will not have additional expenses starting the business.

14.  Total Estimated Initial Investment:  $141,150 to $542,400

• The franchisor relied on over 50 years of its affiliates’ and predecessors’ business experience to compile these estimates.

• From time to time, the franchisor sells company-owned stores to franchisees. The purchase price of the store will vary and may be more or less than the amounts set forth in the tables. The purchase price of these stores did not exceed the upper range of the Total Estimated Initial Investment in the Item 7 table in fiscal year 2016.

For a Non-Traditional Store

• The total estimated initial investment necessary to begin operating a Domino’s Pizza Non-Traditional Store ranges from $99,150 to $535,900.

For a Transitional Store

• The total estimated initial investment necessary to begin operating a Domino’s Pizza Transitional Store ranges from $115,100 to $378,400.

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