Before we get into the Domino’s Financing discussion lets establish that Domino’s Pizza is one of the most turnkey franchises you will find. It’s great to have some business training going in. However, Domino’s will train you completely from start to finish.
In addition, most people can only name 1 or 2 people who don’t know what the Domino’s pizza business is all about, what their price point is and what foods they sell besides pizza. So many casual, social events in our lives from pre-school parties to 5k runs are marked by the statement, “Let’s go get a pizza.” Or “I ordered some pizza for everyone.”
Domino’s expects new entrepreneurs to:
1. Have $250,000 in net worth (including property, cash-like holdings like cd’s, cars etc.), of which $75,000 must be liquid, so you can turn it into cash if you need to; and
2. Make an initial investment between $119,950 and $461,700 depending on where you live, (which includes the $25,000 franchise fee, the store location itself, payroll, supplies and all new business expenses).
After you pay your fee, Domino’s will ask you to attend a 3-week course to learn how to run your new business. Domino’s teaches you how to recruit employees, manage and operate your store and make their signature pizzas and menu items. You will also have to work in an existing Domino’s to get hands-on experience.
Your Domino’s financing franchise fee pays for everything including your equipment and building location. You will also have to use the corporate suppliers and recipes for everything. The agreement you sign will require you to run everything according to corporate policy and you can only use approved:
Store layout etc.
Your pizza and food must also meet quality requirements.
Once you’ve gotten started, you’ll have to pay a royalty fee every month to Domino’s of 5.5% of your store earnings. That goes to the national advertising and sponsorship budget for the brand.
The Domino’s Pizza head office will help you with your online and offline store marketing as well. They know what works, so there’s no need to figure out your own SEO or determine what local radio or TV stations to advertise on. All that work is done for you. Domino’s will also assign you a franchise consultant to handle any concerns you have along the way and advise you on what you can improve.
Building a food service business is not the easiest thing to do. However, owning a Domino’s franchise tips the odds in your favor. Many of the things that cause small businesses to fail are non-issues with this franchise. You will have to be attentive to your business and make sure it’s run properly or hire a manager that can. However, that, along with efficient workers that do their jobs properly are generally all you need to make this turnkey franchise successful.
Contact us today at IRH Capital to learn more about Domino’s financing!