Risk Score
Pending analysis
Investment Range
$107,450 - $743,500
Total US Locations
7,068
Business Summary
Domino's Pizza offers franchises for stores specializing in pizza and other authorized food and beverage products. These stores operate under the Domino's System, which includes unique recipes, distinctive designs, and strict operating procedures. Domino's Pizza stores provide services primarily through delivery and carry-out. They come in two main formats: Traditional Stores, found in typical retail locations with delivery and carry-out services, and Non-Traditional Stores, located in venues like airports or stadiums, which usually offer only carry-out.
Corporate History
Domino's Pizza's business was originally founded by Mr. Thomas S. Monaghan in 1963. The company, through its predecessors and affiliates, has operated Domino's Pizza Traditional Stores since 1960 and Non-Traditional Stores since 1990. Domino's Pizza LLC (DPL), a predecessor, began granting franchises for Traditional Stores in 1967 and Non-Traditional Stores in 1990. In December 1998, Mr. Monaghan sold a significant portion of his ownership, and in July 2004, the parent company, Domino's Pizza, Inc., became publicly traded. Domino's Pizza Franchising LLC (DPF), a Delaware limited liability company organized in 2007, became the franchisor for U.S. franchise agreements after April 2007 following a securitization transaction. DPL now acts as DPF's franchise sales agent and provides support services to franchisees under a management agreement.
Financial Overview
Investment Range
$107,450 - $743,500
Franchise Fee (High)
$10,000
Royalty %
5.5%
Marketing %
4%
Equipment Costs (Low)
$72,200
Equipment Costs (High)
$530,000
Working Capital
$41,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Domino's Pizza Franchising LLC (DPF) and its indirect parent, Domino's Pizza LLC (DPL), both have unqualified audit opinions, indicating their financial statements are presented fairly. DPF shows strong net income and very low liabilities, though a significant portion of its cash is distributed to its parent company, Domino's Pizza Master Issuer LLC, which uses these funds to service its debt. DPL, the indirect parent of DPF, also demonstrates robust revenues and net income. However, DPL carries substantial long-term debt, totaling over $3.8 billion in 2024, primarily from asset-backed securitization transactions. A significant portion of this debt ($1.1 billion in 2024) is classified as current because its anticipated repayment date is October 2025, although DPL expects to refinance it before then. Despite this, DPL's Holdco Leverage Ratio in 2024 was below a threshold that allowed it to suspend certain debt amortization payments, reclassifying more debt as long-term. DPL maintains strong cash flow from its operations, suggesting a financially robust overall system, but with considerable debt obligations to manage.
Financing Details
Domino's Pizza does not offer any direct or indirect financing to its franchisees, nor does it guarantee any loans, leases, or other financial obligations for them.
Performance Metrics
Total US Locations
7,068
Franchised Units
6,776
Corporate Units
292
Franchising Since
1967
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
Domino's Pizza is currently involved in several active lawsuits. A federal securities class action, filed in September 2024, alleges that Domino's, its CEO (Russell Weiner), and CFO (Sandeep Reddy) made false or misleading statements regarding the company's global net store growth, leading to investor losses. Additionally, two derivative lawsuits were filed in early 2025 against Domino's directors and executives, including the CEO and CFO, alleging breaches of fiduciary duties related to the same store growth issues, with one lawsuit also accusing the CEO of unlawful insider trading. Domino's is vigorously defending these claims. Furthermore, Domino's Pizza LLC is defending against several labor and employment lawsuits from franchisee employees, who claim DPL is a joint employer and violated wage and hour laws, allegations DPL disputes. An older case from 2015, involving a Master Franchise Agreement in Africa, was settled for $400,000.
Bankruptcy History
Domino's Pizza has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Domino's Pizza franchisees must meet several conditions. They must not be in material default of any agreements with Domino's or its affiliates and must have substantially complied with all terms throughout the agreement period. This means avoiding more than six breaches during the term, more than three breaches in the last 24 months, or any severe violations listed in Section 18.2.1. Franchisees must also secure or maintain possession of an approved store location. They are required to refurbish the existing site according to current standards, or if requested by Domino's, relocate to a new, approved location and develop it to meet current requirements, with relocation costs potentially creditable towards refurbishing. Additionally, the franchisee and their owners must sign a general release of claims against Domino's and its affiliates, and sign Domino's then-current standard franchise agreement, which may have different terms, including higher fees for royalties and advertising. There is no initial franchise fee for renewal.
Training & Support Program
Franchisor Assistance
Domino's Pizza Franchising LLC provides extensive support to its franchisees both before and after a store opens. Before opening, Domino's Pizza assists with granting rights to open stores within a development area, approving suitable sites and leases, and providing standards for store plans, equipment, fixtures, and signs. Franchisees must complete initial training programs. Once open, Domino's Pizza offers ongoing operating assistance including advice on food preparation, packaging, sales, administrative procedures, accounting, and inventory control. The company also guides franchisees on operating problems identified through reports or inspections. Domino's Pizza formulates national, local, and regional advertising and promotional programs, and sets pricing requirements when permitted by law. Franchisees gain access to an Operating Manual containing mandatory procedures and benefit from required Brand Technology systems like Domino's PULSE for point-of-sale, online ordering, and a Global Positioning System for delivery tracking. Additional training programs may also be offered or required.
Initial Training Hours
195
Training Location
Ann Arbor, Michigan or online
Ongoing Support
After opening, Domino's Pizza provides franchisees with ongoing operating assistance and guidance on food preparation, packaging, sales, and administrative and inventory control procedures. The company also offers advice on operating problems identified through reports or inspections. Domino's Pizza develops and conducts national, local, and regional advertising programs. It can also establish pricing requirements and offers optional or mandatory additional training programs for a fee. Franchisees receive access to a comprehensive Operating Manual with required standards and procedures. The company mandates the use of its Brand Technology, which includes the Domino's PULSE computer system, online ordering platforms, and a Global Positioning System for delivery tracking, requiring ongoing maintenance and support services.
Franchise Requirements
Ideal Candidate Profile
Domino's Pizza seeks individuals with proven operational experience within its system. For a single-store franchise, candidates must have at least 12 consecutive months of experience as a Store general manager. For multi-unit franchises, successful Store supervisors or higher with at least 12 months of experience are considered. All applicants must have completed specific store operations classes. Financial requirements include meeting minimum net worth and liquidity thresholds, which depend on the number of stores to be developed or purchased. The primary owner, or "Controlling Person," is expected to be fully dedicated to the Domino's Pizza business and not have financial or operational involvement in outside ventures without prior written approval. Additional factors considered during the application process include credit and criminal background checks, community reputation, motor vehicle records, and, where permissible by law, fluent English speaking ability.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
1
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
For Domino's Pizza Traditional Stores, the territory is defined as an Area of Primary Responsibility. This area typically extends as a 1-mile radius around the store or a 1-mile radius from a street intersection. In densely populated areas, this is generally reduced to a 0.5-mile radius. The specific boundaries are outlined in the franchise agreement. For Non-Traditional Stores, the territory is limited to just the premises of the store itself.
Staffing Notes
Domino's Pizza franchisees are entirely responsible for all staffing aspects, including recruiting, hiring, training, scheduling, supervising, and paying their employees; these individuals are considered the franchisee's employees, not agents of Domino's Pizza. Each store must always have direct, on-premises supervision by the franchisee or their designated Controlling Person, who is required to dedicate full-time effort to managing the store(s). If a franchisee owns multiple Domino's Pizza stores, each location must be supervised by a properly trained manager whose identity has been disclosed to Domino's Pizza. These managers must also sign confidentiality and non-compete agreements. Franchisees are specifically responsible for ensuring their employees are trained on all legal, safety, and operational procedures, including those for delivery. While Domino's Pizza offers training advice, it does not assume responsibility for implementing employee training programs or instructing on safety.