Domino's Franchise Costs, Fees & Owner Salary (2023)









May 2, 2024



a franchise?


Domino's, established in 1960 and franchising since 1967, is headquartered in Ann Arbor, Michigan. The brand is a dominant force in the pizza delivery industry, recognized for its innovative approach and extensive global presence. Domino's has built a robust franchise system that emphasizes internal career progression, with a significant majority of U.S. franchisees beginning their journey as part-time employees within the company.

This unique model fosters a deep understanding and commitment to the company's values and operational standards among franchisees. The franchise offers a comprehensive training and support system, designed to assist franchisees in various aspects of their operations, from leveraging Domino's advanced technology for efficiency to engaging in effective marketing strategies.

The commitment to community involvement and strong brand awareness further solidifies Domino's position as a leader in the fast-food industry. Prospective Domino's franchisees in the U.S. are required to have at least one year of experience working as a general manager or supervisor within the company, underscoring the brand's preference for developing talent internally.

This approach ensures that franchisees are well-acquainted with Domino's culture and operational practices, contributing to the brand's consistent quality and service standards across locations.

How many



are there?

In 2022, there were
outlets in
the United
States, of which
are franchises, and
are corporate-owned.

What are the




Advertising fee

5% to 8%

Initial franchise fee ($10,000)
The initial franchise fee for Domino's ranges from $0 to $10,000 depending on the type of store to be developed, purchased, or opened. This fee is non-refundable and is payable prior to the issuance of the applicable agreement. In some cases, a reservation fee of $25,000 may be required under certain circumstances, especially under the new Store build incentive program.

Royalty fee (5.5%)
Domino's charges a royalty fee of 5.5% of the store's weekly royalty sales. This fee is paid via electronic funds transfer by Thursday of each week on royalty sales for the week ending on the preceding Sunday.

Advertising Fund (4%)
Franchisees are required to contribute 4% of the store's weekly royalty sales towards the Advertising Fund. This contribution is made alongside the royalty fee payment.

Advertising Cooperatives (1-4%)
In addition to the Advertising Fund, franchisees may be required to contribute between 1 to 4% towards Advertising Cooperatives. This contribution is also made alongside the royalty fee payment.

Technology Transaction Fee
Domino's may develop or contract with third parties to develop centralized or technology-based methods of taking, processing, routing, and delivering orders.

These may become mandatory at any time during the term of the agreement and may require franchisees to spend money to add or replace equipment, wiring, hardware, and software; to pay licensing fees, support and maintenance fees, fees paid to third parties; to incur other costs, and to sign agreements with third parties.

Upfront and/or ongoing fees may be charged as part of the Technology Transaction Fee to cover the costs of these technological advancements.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a



It costs between
to start a
Type of Expenditure Amount
Initial Fee $0 to $10,000
Leasehold Improvements $25,000 to $300,000
Furniture, Fixtures and Equipment $81,000 to $145,000
Signage $5,200 to $35,000
3 Month's Rent $3,000 to $25,000
Security Deposit $1,000 to $10,000
Opening Inventory and Supplies $2,750 to $6,500
Opening Advertising and Promotion $0 to $3,000
Training Expenses $1,000 to $3,000
Insurance $25,000 to $65,000
Miscellaneous Opening Costs $2,500 to $7,000
Additional Funds – 3 Months $10,000 to $73,000
Total Estimated Initial Investment $156,450 to $682,500

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.





to its



Domino's places a significant emphasis on training and education for its franchisees to ensure they are well-equipped to operate a Domino's franchise successfully.

Below is a detailed breakdown of the training provided to franchisees by Domino's:

  1. Initial Training:
    • If a franchisee or the controlling person has not previously opened a Domino's Pizza Store or Domino's Pizza Non-Traditional Store, they must enroll and complete all training programs and classes required for the operation of the Store. These programs are furnished at designated times and places, with a reasonable training fee charged for these programs or classes. All training programs and classes must be completed to Domino's satisfaction. The franchisee is responsible for travel, living expenses, and any other costs incurred during these training programs and classes.
  2. Franchise Management School (FMS):
    • Franchisees are required to complete various tracks of the Franchise Management School (FMS) to obtain Qualified Franchisee Candidate status. The training programs include workbooks, manuals, online courses, and facilitator-led PowerPoint presentations.
    • The FMS comprises different segments, including:
      • FMS - Admissions: Approximately 4575 hours of online/classroom training in the candidate’s market.
      • FMS - Undergrad Class: Approximately 8 hours per day for 3 days, held in Ann Arbor, Michigan or online.
      • FMS - Pre-Grad School: Approximately 4575 hours of training in the candidate’s market.
      • FMS - Grad School: Approximately 8 hours per day for 2 days.






Franchisees do not receive an exclusive territory. Under the Development Agreement, they may face competition from various sources, including other franchisees, outlets that Domino's owns, or other channels of distribution or competitive brands controlled by Domino's. Franchisees are provided with a development area in which to develop their Stores.

While neither Domino's nor its affiliates will operate or grant a franchise for a Store other than to the franchisee within this development area during the term of the Development Agreement, certain locations such as enclosed malls, institutions, airports, parks, sports arenas, convention centers, and other event venues are excluded from the Development Area.

Can a



be run as

a passive


Domino's expects the franchisee to be actively involved in the operation of their franchised restaurant. The franchise agreement stipulates that the store should always be under the direct, on-premises supervision of the franchisee or the Controlling Person if the franchisee is an Approved Entity.

If the franchisee owns more than one store, each store must also be under the on-premises supervision of a properly trained manager whose identity has been disclosed to Domino's.

Also, the manager should have signed an agreement not to divulge any trade secret or confidential or proprietary information, or to engage in or have any interest in any other carry-out or delivery pizza store business.

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