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Considering a Domino’s Pizza Franchise? Don’t Overlook These 23 Important Franchise Fees

by Franchise Chatter on May 30, 2017

in Franchise Fees, Pizza Franchises



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If you are considering a Domino’s Pizza franchise, don’t get blindsided by these 23 important franchise fees (from the initial franchise fee, to the royalty fee, to 21 other fees found in Items 5 and 6 of Domino’s Pizza’s 2017 FDD).

1.  Initial Fee:  $0 to $25,000

  • Depending upon your recent management or supervisory experience in the Domino’s Pizza System; the type of Store to be developed, purchased, or opened; and whether you are participating in one of Domino’s Pizza’s incentive programs as discussed below, you will pay an initial franchise application processing fee (“Initial Fee”) ranging from $0 to $25,000.
  • The range of the Initial Fees paid to Domino’s Pizza during the year ending January 1, 2017, was from $0 to $25,000.
  • Domino’s Pizza’s current policy for determining the amount of the Initial Fee is (subject to the terms of an incentive program):
  • (a) If you are constructing a Store and have recent management or supervisory experience in the Domino’s Pizza System, you will pay an Initial Fee of up to $10,000. If you are constructing a Store and you do not have recent management or supervisory experience in the Domino’s Pizza System, you will pay an Initial Fee of up to $25,000.
  • (b) If you are refranchising a closed Store and have recent management or supervisory experience in the Domino’s Pizza System, you will pay an Initial Fee of up to $10,000. If you are refranchising a closed Store and you do not have recent management or supervisory experience in the Domino’s Pizza System, you will pay an Initial Fee of up to $25,000.
  • (c) If you are purchasing an existing Store and have recent management or supervisory experience in the Domino’s Pizza System, you will pay a transfer fee of $1,500. If you are purchasing an existing Store and you do not have recent management or supervisory experience in the Domino’s Pizza System, you will pay an Initial Fee of up to $25,000, which will include the cost of your initial training expenses. Training expenses include fees for training materials for each session required.
  • (d) The fee for a Development Agreement is each Store’s Initial Fee of up to $25,000 (“Reservation Fee”). The Reservation Fee for each Store is payable only if you fail to comply with the development schedule for a Store. Further, in the event that you do not open all of your required new Stores under the Development Agreement, you must pay Domino’s Pizza the Reservation Fee for each of the new Stores not opened. All such payments of the Reservation Fee will be due within 20 days of written notice from Domino’s Pizza.
  • (e) If you are applying to enter into a facility under the License Agreement, you will pay an Initial Fee of up to $5,000.
  • The Initial Fee is payable prior to Domino’s Pizza issuing the applicable agreement and is not refundable for any reason.
  • Also, at Domino’s Pizza’s discretion, all or a portion of the fees described in (a), (b), and (c) above may be required to be paid when the initial franchise application is submitted for Domino’s Pizza’s review and approval.
  • Additionally, at Domino’s Pizza’s discretion, this fee may be applied to the initial operational and classroom training of the individual who will own 51% or more of the equity and voting interest in the franchise. Domino’s Pizza may charge a reasonable training fee up to $1,000 for these training programs or classes which you must complete to its satisfaction.
  • Domino’s Pizza may waive all or a portion of the Initial Fee under incentive programs it implements from time to time to encourage system growth.
  • If you are developing a store under Domino’s Pizza’s New Store Build Incentive Program, you must pay Domino’s Pizza a reservation fee of $25,000 under certain circumstances. The reservation fee when paid is not refundable.

2.  Inventory and Supplies, Equipment, Fixtures, Furnishings, and Signage:  will vary under circumstances

  • You must purchase inventory and supplies, equipment, fixtures, furnishings, and signage to open your Store. DPD and approved vendors supply these items to franchisees.
  • Domino’s Pizza estimates that these payments together with Initial Fee payments will range from $88,950 to $186,500 for a Domino’s Pizza Traditional Store, $69,950 to $177,500 for a Domino’s Pizza Non-Traditional Store, and $82,700 to $181,500 for a Domino’s Pizza Transitional Store, based upon the experience with store openings during the last year.
  • You must also make certain payments to DPD when you acquire the proprietary computer and point of sale system.

3.  Grand Opening Advertising and Promotion:  $3,000 for your first Store



  • For the opening of your first Store, you must spend a minimum of $3,000 for grand opening advertising and promotion. You must also submit to Domino’s Pizza proof that you spent at least $3,000 on grand opening advertising no later than 90 days after the opening of the Store.

4.  Royalty Fee:  5.5% of Store’s weekly Royalty Sales

  • Due Date:  Paid via electronic funds transfer by Thursday of each week on royalty sales for the week ending on the preceding Sunday.
  • Royalty Sales are the total receipts from all sales of pizza, beverages, and other products or services authorized for sale at the Store or at any approved off-site location.

5.  Advertising Fund:  4% of Store’s weekly Royalty Sales under the Franchise Agreement. Non-Traditional Stores and Transitional Stores may receive a partial credit or make a reduced contribution.

  • Due Date:  Same as Royalty Fee.

6.  Advertising Cooperatives:  1-4%

  • Due Date:  Same as Royalty Fee.
  • May be required to participate in local and regional advertising cooperatives.

7.  PULSE Initial License Fee:  $4,923

  • Paid to DPD. $723 is paid by DPD to third party vendors.

8.  Annual Software Enhancement Fee:  $528 per Store per year, after the first year

  • Due Date:  As invoiced.
  • Covers cost of updates to Domino’s PULSE core software.
  • Fee for first year is included in initial cost.

9.  Help Desk/Software Support Services:  currently, $32 per call

  • Due Date:  As invoiced.

10.  Connectivity Fee:  $1,200 per year

  • Due Date:  As invoiced.
  • Paid when you do not have high speed broadband connectivity where the service is available.

11.  Monthly Service Fee for Application Processing:  $8.47 per month

  • Paid to IBM but refunded to DPL at the end of the year to offset expenses and costs incurred by DPL in implementing this service.

12.  Additional Ordering System Fee:  $.21 per order

  • Due Date:  As invoiced.
  • May be increased or decreased pursuant to the terms of the Online Ordering Franchise Services Agreement.

13.  Credit Card Processing Fee:  $.023 per transaction



  • Due Date:  As invoiced.
  • Paid to an outside vendor ($.04 per transaction) but portion remitted to Domino’s Pizza by vendor to cover costs for credit card security and related costs.

14.  Menu Management Services Fee:  $10 per month

  • Due Date:  As invoiced.
  • Not currently mandatory.

15.  Inspections:  will vary under circumstances

  • Due Date:  As incurred.
  • Includes all travel expenses, room and board, and compensation of Domino’s Pizza’s employees.

16.  Audit Expenses:  cost of audit, charges of employees, understatement, plus 1.5% interest per month

  • Due Date:  10 days after receipt of final audit.
  • Payable if understatement is greater than 2%, or audited because you failed to submit reports.

17.  Transfer:  $1,500

  • Due Date:  Before transfer.
  • Payable when Franchise Agreement or the assets of the Store or any ownership interest is transferred.
  • Domino’s Pizza may charge up to $25,000 if you do not have management or supervisory experience in the Domino’s Pizza System.

18.  Training Fees:  not to exceed $1,000 per session

  • Due Date:  Upon class registration.
  • Domino’s Pizza may require supplemental or additional training programs.
  • You pay cost of additional or supplemental programs (not to exceed $500) and other expenses.

19.  PULSE training:  not to exceed $1,500, plus expenses

  • Due Date:  As invoiced.

20.  Interest on Late Payments:  lesser of 1.5% per month or highest legal rate for open account business credit in the state

  • Due Date:  As incurred.
  • Payable on all overdue amounts.
  • 2% above the Libor rate for Alaska and Hawaii stores.

21.  Charges for Testing and Evaluation:  will vary under circumstances

  • Due Date:  As incurred.

22.  Indemnification:  will vary under circumstances

  • Due Date:  As incurred.
  • You must indemnify and hold Domino’s Pizza harmless if it is held liable from your Store’s operations.

23.  Costs of Enforcement/Non-Compliance:  will vary under circumstances

  • Due Date:  As incurred.
  • Reimburse Domino’s Pizza to enforce the Franchise Agreement.
  • Under Domino’s Pizza’s Customer Care billing program, you will be charged $20.00 for excessive calls Domino’s Pizza receives from your customers related to product and services concerns at your store.
  • You will be charged only if the customer indicates they contacted the store and did not get resolution of his or her issue.
  • For subsequent contacts to Domino’s Pizza’s Customer Care department by the customer, you will be charged $30.00 per contact but only if they occur outside of a 5-day standard reply period.


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