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

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.

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:

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.

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.