Domino's Franchise

Domino's, a Domino's Pizza Inc franchise, has been franchising since 1967 - 7 years after the concept was founded in 1960 , currently with 19,762 total locations in the food & beverage sector, headquartered in MI. Per the 2024 FDD, budget a total initial investment of $131K to $513K, with the 292% low-to-high spread driven mainly by site size, market, and how extensive the buildout runs. This figure includes the franchise fee of $10K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 5.5% of gross sales with an additional 6.0% national advertising fund contribution, bringing the combined ongoing cost to 11.5% of every dollar in sales. Critically, Domino's does disclose financial performance data in Item 19, a voluntary disclosure that only about a third of U.S. franchisors make. The reported average gross revenue per location is $1.3M, meaning the typical unit pays roughly $72K per year in royalty alone. Revenue is not profit, actual franchisee take-home depends on rent, labor, cost of goods, and local demand.

Domino's's network is expanding: unit count grew at a 1.0% net rate over the past year (700 openings, 500 closures). Growing networks tend to signal healthy unit economics for prospective operators, though it is worth distinguishing organic demand from an aggressive franchise-sales push.