Donatos Pizza Franchise Costs, Fees & Owner Salary (2023)

Initial Franchise Fee ($30,000)

• This fee is due upon signing the Franchise Agreement. It covers the rights to open and operate a Donatos Pizza Restaurant.

Licensing Fee (4% of Net Sales)

• This fee is due weekly and is based on the Net Sales of the previous week. It covers the use of Donatos Pizza's Marks and operating system.

National Marketing Fund Contribution (5% of Net Sales)

• This fee is also due weekly and is based on the Net Sales of the previous week. Franchisees are required to spend a total of 5% of their Net Sales each calendar quarter on advertising and marketing.

Software License Fee ($4,500)

• This one-time license fee is for the TRIO Software, which is used in the restaurant. It is due prior to the installation of the software, which happens before the grand opening of the restaurant.

Training Fee (Greater of $15,000 or actual costs and expenses)

• This fee is only applicable if this isn't the franchisee's first restaurant and they desire to receive the Opening Training. The fee is due within 15 days of the final calculation.

Transfer of Franchise Rights Fee ($15,000)

• This fee is due upon the transfer of the Franchise Agreement or controlling ownership interest in the business entity franchisee to a new owner or partner who is not an existing franchisee.

Renewal Fee ($15,000)

• This fee is due if the franchisee qualifies and elects to renew their franchise for a subsequent 10-year term.

The estimated initial investment for opening a Donatos Pizza franchise can vary, but for a clearer understanding, we've broken down the costs. The investment ranges from approximately $457,244 to $989,654.

This estimate encompasses various expenditures, from the initial franchise fee to training expenses and additional funds for the first three months. Below, you'll find a detailed table that provides a comprehensive overview of each expenditure type, the associated cost range, and the respective payee.

At the heart of Donatos Pizza's franchise support is their comprehensive training program. Designed for up to three individuals, including the Designated Principal and possibly the district manager or general manager, this program ensures that every franchisee is well-equipped to run their store.

The curriculum is extensive, covering everything from operations and guest service to marketing and IT.

The duration of the training varies, tailored to the class size and the pace of material coverage. Most of the hands-on training and classes take place at approved locations, often including Donatos Pizza's home office.

Donatos Pizza is a firm believer in continuous growth and development. They offer advanced and refresher training programs, ensuring that franchisees and their teams are always at the top of their game.

And while the initial training programs come at no extra charge for franchisee owners, it's essential to note that other related expenses, like transportation, lodging, and meals, fall on the franchisee.

Each Restaurant is assigned to a specific location (the "Site"). This assignment is either made at the time of the execution of the Franchise Agreement or within one hundred eighty (180) days. Relocating the Restaurant from the Site requires prior written approval from the franchisor.

Typically, the franchisor does not grant a relocation of a Restaurant during the term of the Franchise Agreement. However, exceptions might be made in cases such as catastrophic events or loss of occupancy rights to the approved site through no fault of the franchisee.

For those entering into a Development Rights Agreement, the designated Territory is defined based on various factors. The size of the Territory is primarily determined by the number of Donatos Pizza Restaurants the franchisee agrees to develop, the market, other characteristics of the Territory, and demographic factors. The Territory is usually an entire city or county, depending on the area's urban or rural nature.

Donatos Pizza emphasizes the importance of active management in their franchised units. Every franchise owner, regardless of their level of involvement in daily operations, must complete a specific training program.

Additionally, for daily restaurant operations, there should be at least one manager-level personnel staff member on-site who has completed the Operational Management Training or is a Manager in Training.

If Donatos Pizza determines that a restaurant manager hasn't satisfactorily completed the current training curriculum for their position, the franchisee is expected to hire a substitute manager who must then complete the necessary training to the company's satisfaction.