If you are an entrepreneur looking to invest in a Pizza franchise, then in all likelihood, Domino’s must have popped into your head first. So if you want to know how much a Domino’s franchise owner makes, then we’ve got you!
In this guide, we have shared all the necessary details of Domino’s franchise, including its investment cost, profit, and sales figure, etc.
So make sure you do not leave out anything!
About Domino’s
Domino’s is one of the most popular pizza chains in the world, and it was founded in 1960 in Ypsilanti, Michigan.
It all started when two brothers, Tom Monaghan, and James, purchased a local Pizza place called Dominick’s.
After purchasing Dominick’s, they changed its name to Domino’s, and owing to the delicious taste of their Pizzas, Domino started expanding rapidly.
In 1967, they opened their first franchised store, and ever since then, Domino’s has expanded to more than 20,000 stores in 90 international markets.
If you wish to own a Domino’s franchise yourself, then keep on reading to find out how much a Domino’s franchise owner makes.
How Much Does A Domino’s Franchise Owner Make?
The earnings of a Domino’s franchise owner may vary based on their operating cost, franchise model, location, etc.
However, on average, a Domino’s franchise owner makes $1,286,428 in sales annually.
Also, over the few years, there has been an increase in the median sales of Domino’s franchises which is a great thing.
Domino’s Intial Investment Figure
| Cost or Fee | Amount or Percentage |
|---|---|
| Franchise fee | $10,000 |
| Royalty fee | 5.5% |
| Marketing fee | 6.5% |
| Investment (mid-point) | $398,725 |
| Average sales | $1,286,428 |
| Payback period | 4 years |
| Minimum net worth | $250,000 |
| Minimum liquid capital | $75,000 |
How Much Does Domino’s Employee Earn?
The salary of a Domino’s employee may vary for different positions, departments, locations, skills, etc.
However, as per Indeed, the average hourly pay for a Domino’s employee ranges from $9.95 per hour for the position of Operations Associate to $24.96 per hour for the position of Yard Driver.
If we look at the salary figure on a yearly basis, then the average yearly salary for a Domino’s employee ranges from $30,000 per year for the position of Sales Associate to $117,000 per year for the position of Unit Controller.
Pros & Cons Of Domino’s Franchise
Pros Of Domino’s Franchise
- Great Business Model.
- Use of technology like e-commerce sites and mobile apps allows more sales.
- Low capital requirement.
- Profitable.
- Offers discounts to qualifying veterans & women.
- Provides training & support.
Cons Of Domino’s Franchise
- High competition.
- No territory protection.
Domino’s Franchise Average Revenue & Profit
As already mentioned, the average revenue and profit of a Domino’s franchise owner may vary based on a number of factors.
But on average, a Domino’s franchise owner makes $1,286,000 in sales per year, and with a profit margin of 15%, they make net profits of $192,900 per year.
This is how we calculated this amount:
| Financial Overview | Percentage of Revenue | Amount ($) |
|---|---|---|
| Individual Franchise Annual Revenue | 100% | 1286000.00 |
| Rent | 10.63% | (136637.50) |
| Insurance | 5.31% | (68318.75) |
| Salaries | 21.25% | (273275.00) |
| Franchise Royalty Fees | 5.31% | (68318.75) |
| Utilities | 2.13% | (27327.50) |
| Cost of Goods Sold (COGS) | 26.56% | (341593.75) |
| Labor (Variable) | 13.81% | (177628.75) |
| Total (Expenses) | 85.00% | (1093100.00) |
| Net Profit | 15.00% | 192900.00 |
Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.
You should note that this is an average number, and franchise owners may be able to make more or less than this. In fact, the top-performing Domino’s franchise has made up to $260,802 in profits which is pretty good.
Domino’s Franchise Failure Rate
To find out the failure rate of Domino’s franchise, let us look at the table below:
System-wide Outlet Summary
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2018 | 6 | 8 | +2 |
| 2019 | 8 | 24 | +16 |
| 2020 | 24 | 57 | 0 |
For the Franchised outlets:
- In 2019, the growth rate was (2)/6×100≈33.33%
- In 2020, the growth rate was (16)/8×100≈200%
- In 2021, the growth rate was (0)/24×100≈0.00%
Company-Owned Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2018 | 5 | 5 | 0 |
| 2019 | 5 | 7 | +2 |
| 2020 | 7 | 9 | +2 |
For the Company-Owned outlets:
- In 2018, the growth rate was (0)/5×100≈0.00%
- In 2019, the growth rate was (2)/5×100≈40%
- In 2020, the growth rate was (2)/7×100≈28.57%
Total Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2018 | 11 | 31 | +2 |
| 2019 | 13 | 31 | +18 |
| 2020 | 31 | 66 | +35 |
For Total outlets:
- In 2018, the growth rate was (2)/11×100≈18.18%
- In 2019, the growth rate was (18)/13×100≈138.44%
- In 2020, the growth rate was (35)/31×100≈112.9%
According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.
We can see that the franchised outlets for Domino’s grew from 2018 to 2020, showing a growth rate between 33.33% and 0.00%. On the other hand, for company-owned outlets, the growth rate of Domino’s is lying in the range between 0.00% and 28.57% for the same period of time.
Overall, when we combine the data of franchise and company-owned outlets, we can see that the Domino’s franchise has expanded in the years 2018-2020 showing a total growth rate between 18.18% and 112.9%.
Domino’s Franchise Payback Period
To find out the payback period of the Domino’s Franchise, let us do some calculations:
| AVERAGE INVESTMENT | $398,725 |
| AVERAGE REVENUE PER OWNER | $1,286,000 |
| AVERAGE PROFIT PERCENTAGE | 15% |
| AVERAGE PROFIT PER YEAR | $192,900 |
| AVERAGE PAYBACK PERIOD | 2 years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 389725/192900 = 2.02 = 2 Years based on median.
The average investment for a Domino’s Franchise is $398,725.
With an average profit percentage of 15%, the average profit per year is $192,900.
This means that the average payback period for a Domino’s Franchise is 2 years, and the total investment of $398,725 would be recovered within this period.
Facts About Domino’s
- You can create a single Domino’s pizza in more than 34 million ways.
- The first non-pizza item offered on Domino’s menu was Breadsticks.
- Pepperoni is the most demanded pizza topping in the U.S.
- Zagros Jaff, Domino’s pizza maker, can make two pizzas in only 70 seconds.
- Approximately 94% of Domino’s outlets in the U.S. are franchise owned.
- There are over 700 independent Domino’s franchise owners in the U.S.
- Across the globe, Domino’s sells 3 million pizzas a day on average.
- New Year’s Eve, Super Bowl, and Halloween are the busiest days for Domino’s.
- James Monaghan, one of the founding brothers, traded his partnership in the company for an old Volkswagen Beetle.
- The three dots in Domino’s logo represents three Domino’s store that was started during the initial years.
- Domino’s is the fifth favorite pizza chain in the United States.
- India has the most number of Dominoes after the U.S.
- They deliver more than a million Pizzas in a day.
- In 2016, Domino’s launched a zero-click delivery app that placed an order automatically after 30 seconds if the user didn’t stop the timer.
- In the same year, Domino’s also launched a delivery robot called Domino’s Robotic Unit.
((https://media.dominos.com/assets/files/dominos-101-fun-facts.pdf))
What Is Domino’s Best known For?
Dominos is known for its variety of delicious cheese pizzas. They are famous for their generous toppings and for the ways in which they keep on improving their pizza.
They are also undisputed when it comes to pizza deliveries and is also known for their 30-minute delivery promise.
Apart from this, they also have high-technology apps and e-commerce sites for customers that allow for speedy online food ordering.
Here are some of the most popular items of Domino’s:
- Chicken Alfredo Pasta.
- Marbled Cookie Brownie.
- Chocolate Lava Crunch Cake.
- Cheeseburger Pizza.
- Hot Wings.
- Plain Wings.
- Cinnamon Bread Twists.
- Boneless Chicken.
Is Domino’s Franchise Profitable?
Until now from what we have discussed, Domino’s seems like a profitable business to invest in, but is that true?
Well, yes, Domino’s as a company is profitable, and as we can see from the chart above, its sales have been increasing constantly.
Even the franchise owners make a profit of $192,900 and the top-performing franchises make as much as $260,802 in net profit. So yes, owning a Domino’s Pizza franchise is definitely profitable overall.
Domino’s Franchise Earning Potential
The earning potential of any company is dependent on their marketing skills, innovations, demand, etc.
And with the rate by which Domino’s is constantly growing, we can say that it is in demand, and with the increase in demand, there is a possibility for earning more.
Also, according to data, Domino’s franchise owners can make as much as $260,802 in net profit, so there is a potential to earn more money with this franchise opportunity.
Wrap Up
After looking at the nitty gritty of Domino’s franchise, we can say that Domino’s is a very popular franchise with a low failure rate.
It requires low capital investment and allows you to earn as much as $192,900 in net profit on average. Also, the payback period for Domino’s franchise is only 4 years which is quite decent.
Overall, we do not see any major flaw in this franchise opportunity and feel it is a good investment opportunity in the pizza industry.
Frequently Asked Questions
What is the franchise fees of Domino's?
Domino’s charge a franchise fees of $10,000.
What is the marketing and royalty fees of Domino's?
Domino’s charge 6.5% in marketing fees and 5.5% in royalty fees.
What is the intial investment required to open a Domino's franchise?
The initial investment required to open a Domino’s franchise is $107,450 to $682,500.
Who owns Domino's?
Domino’s is an American multinational pizza restaurant chain. The chain is owned by Master Franchisor Domnio’s Pizza Inc. and led by CEO Russel Weiner.
Where is Domino's headquartered?
Domino’s is headquartered at the Domino’s Farms Office Park in Ann Arbor Township, near Ann Arbor, Michigan.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.