In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Domino’s Pizza franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Domino’s Pizza franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Domino’s Pizza outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Domino’s Pizza franchise opportunity

Section V – Presentation and analysis of Domino’s Pizza’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023, 2022, 2021, 2020, and 2019 average and median weekly unit sales for company-owned, franchised, and combined company-owned and franchised Domino’s Pizza Traditional Stores located in the United States (not including Stores located in U.S. territories of Guam, Puerto Rico, and U.S. Virgin Islands) that were open at year end and were open and operational for the 12-month period of the applicable year

• number and percentage of Domino’s Pizza Stores in operation during the entire 12-month period in 2023, 2022, 2021, 2020, and 2019 that achieved or exceeded the average weekly unit sales for the year

• 2023 average total variable costs, total fixed costs, and EBITDA for franchised Domino’s Pizza Stores in operation as of the end of the fiscal year 2023 that have operated for at least 12 months and submitted complete and properly prepared profit and loss statements with average weekly unit sales of <$15,000; $15,001 to $20,000; $20,001 to $25,000; $25,001 to $30,000; and $30,001+, respectively

Section VI – Key ratios, comparables, computations, and analyses for the Domino’s Pizza franchise opportunity (exclusive content for Platinum subscribers)

Section I – Domino’s Pizza Franchise Costs

• Initial Fee:  $0 to $10,000
• Leasehold Improvements:  $25,000 to $350,000
• Furniture, Fixtures, and Equipment:  $81,000 to $145,000
• Signage:  $5,200 to $35,000
• 3 Months’ 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 $4,000
• Insurance:  $25,000 to $75,000
• Miscellaneous Opening Costs:  $2,500 to $7,000
• Additional Funds – 3 Months:  $10,000 to $73,000
• Total Estimated Domino’s Pizza Franchise Costs:  $156,450 to $743,500

Section II – Domino’s Pizza’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Fee:  $0 to $10,000
• Royalty Fee:  5.5% of Store’s weekly Royalty Sales
• Advertising Fund:  4% of Store’s weekly Royalty Sales
• Advertising Cooperatives:  1-4% of Store’s weekly Royalty Sales

Section III – Number of Franchised and Company-Owned Domino’s Pizza Outlets

Franchised

2021

• Outlets at the Start of the Year:  6,030
• Outlets at the End of the Year:  6,222
• Net Change:  +192

2022

• Outlets at the Start of the Year:  6,222
• Outlets at the End of the Year:  6,438
• Net Change:  +216

2023

• Outlets at the Start of the Year:  6,438
• Outlets at the End of the Year:  6,600
• Net Change:  +162

Company-Owned

2021

• Outlets at the Start of the Year:  362
• Outlets at the End of the Year:  375
• Net Change:  +13

2022

• Outlets at the Start of the Year:  375
• Outlets at the End of the Year:  286
• Net Change:  -89

2023

• Outlets at the Start of the Year:  286
• Outlets at the End of the Year:  288
• Net Change:  +2

Section IV – News Updates on the Domino’s Pizza Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Domino’s Pizza Franchise (Item 19, 2024 FDD)

• Set forth below is information concerning the average weekly unit sales (“AWUS”) and other financial data of franchised and company-owned Domino’s Pizza Traditional Stores located in the United States (not including Stores located in U.S. territories of Guam, Puerto Rico, and U.S. Virgin Islands) for the calendar years 2019 through 2023.

• AWUS is calculated by dividing the total Royalty Sales reported by all Stores operating during the year by the number of weeks reported.

• Royalty Sales means the total receipts from all sales by the Stores of all pizza, beverages, and other products or services authorized for sale at the Stores or at any approved off-site location but exclusive of sales or equivalent taxes, coupon and similar discounts, and beverage container deposits approved by Domino’s.

AWUS

2019

• Franchised (5,494 Stores):  $22,843
• Company-Owned (326 Stores):  $24,112
• Combined (5,821 Stores):  $22,914

2020

• Franchised (5,757 Stores):  $25,264
• Company-Owned (335 Stores):  $26,579
• Combined (6,092 Stores):  $25,336

2021

• Franchised (5,965 Stores):  $26,004
• Company-Owned (351 Stores):  $25,399
• Combined (6,316 Stores):  $25,970

2022

• Franchised (6,232 Stores):  $25,554
• Company-Owned (275 Stores):  $23,663
• Combined (6,507 Stores):  $25,334

2023

• Franchised (6,371 Stores):  $25,825
• Company-Owned (276 Stores):  $25,509
• Combined (6,647 Stores):  $25,810

Median Weekly Unit Sales

2019

• Franchised (5,494 Stores):  $21,448
• Company-Owned (326 Stores):  $23,585
• Combined (5,821 Stores):  $21,663

2020

• Franchised (5,757 Stores):  $23,845
• Company-Owned (335 Stores):  $25,776
• Combined (6,092 Stores):  $24,004

2021

• Franchised (5,965 Stores):  $24,739
• Company-Owned (351 Stores):  $24,683
• Combined (6,316 Stores):  $24,735

2022

• Franchised (6,232 Stores):  $24,322
• Company-Owned (275 Stores):  $24,248
• Combined (6,507 Stores):  $24,322

2023

• Franchised (6,371 Stores):  $24,594
• Company-Owned (276 Stores):  $25,535
• Combined (6,647 Stores):  $24,665

• These Store counts include all Stores open at year end that were open and operational for the full 12-month period of the applicable year.

• In 2023, the average number of households in the delivery areas of these Domino’s Pizza Stores with delivery service areas was 14,175, and the average dollar per household was approximately $2.85.

• The charts below show the number and percentage of Stores in operation during the entire 12-month period which achieved or exceeded AWUS for the applicable year.

Number and Percentage of Stores in Operation During the Entire 12-Month Period Which Achieved or Exceeded AWUS for the Year

2019

• Franchised:  2,354 (43%)
• Company-Owned:  177 (54%)
• Combined:  2,531 (43%)

2020

• Franchised:  2,503 (43%)
• Company-Owned:  179 (53%)
• Combined:  2,682 (44%)

2021

• Franchised:  2,631 (44%)
• Company-Owned:  161 (46%)
• Combined:  2,797 (44%)

2022

• Franchised:  3,036 (50%)
• Company-Owned:  152 (52%)
• Combined:  3,188 (50%)

2023

• Franchised:  3,213 (50%)
• Company-Owned:  137 (50%)
• Combined:  3,355 (50%)

Part 2 – Other Financial Data

• Set forth below are calculations of EBITDA as a percentage of Royalty Sales, and other financial indicators based upon Average Weekly Unit Sales (AWUS) of <$15,000; $15,001 to $20,000; $20,001 to $25,000; $25,001 to $30,000; and $30,001+.

• These pro forma statements have been derived from profit and loss statements submitted by franchised Stores in operation as of the end of the fiscal year 2023 that have operated for at least 12 months.

• At the end of 2023, there were 6,548 franchised stores in operation. These calculations are based on the information received from 6,301 Stores. 70 Stores did not submit or submitted incomplete or improperly prepared profit and loss statements and 177 Stores were not operational for the full year. Accordingly, these 247 Stores were excluded from these calculations.

Average Weekly Unit Sales:  <$15,000 (560 Stores)

• Total Variable Costs:  80.8%
• Total Cash Fixed Costs:  20.7%
• EBITDA:  1.0%
• 271 (or 48.3%) of these Sores achieved or exceeded the 1.1% EBITDA

Average Weekly Unit Sales:  $15,001 to $20,000 (1,169 Stores)

• Total Variable Costs:  78.2%
• Total Cash Fixed Costs:  16.9%
• EBITDA:  7.3%
• 603 (or 51.6%) of these Stores achieved or exceeded the 7.3% EBITDA

Average Weekly Unit Sales:  $20,001 to $25,000 (1,510 Stores)

• Total Variable Costs:  76.8%
• Total Cash Fixed Costs:  14.8%
• EBITDA:  10.7%
• 809 (or 53.6%) of these Stores achieved or exceeded the 10.7% EBITDA

Average Weekly Unit Sales:  $25,001 to $30,000 (1,303 Stores)

• Total Variable Costs:  76.1%
• Total Cash Fixed Costs:  13.2%
• EBITDA:  13.0%
• 673 (or 51.7%) of these Stores achieved or exceeded the 13.0% EBITDA

Average Weekly Unit Sales:  $30,001+ (1,759 Stores)

• Total Variable Costs:  76.0%
• Total Cash Fixed Costs:  11.2%
• EBITDA:  15.1%
• 889 (or 50.5%) of these Stores achieved or exceeded the 15.1% EBITDA

• Total Variable Costs: Include operating expenses that tend to vary with a change in sales. These expenses include food costs; variable labor costs (which may vary depending on each store’s local labor market and applicable wage and working condition requirements), excluding manager salary; bonus; payroll taxes; worker’s compensation insurance; mileage reimbursement and related delivery expenses; advertising expenses; royalty expense; and operating supplies.

• Total Cash Fixed Costs: Include operating expenses that tend to not vary with a change in sales. These expenses include telephone and utilities, rent, repairs and maintenance, professional fees, small equipment and computer expenses, other taxes (real and personal property taxes, and business taxes), insurance (excluding worker’s compensation), manager salary, and miscellaneous operating expenses.

• EBITDA: Earnings before interest, taxes, depreciation, and amortization. EBITDA is calculated as follows: Royalty Sales minus Total Variable Costs minus Total Cash Fixed Costs, plus Supply Chain Profit Sharing and Volume Discount Rebates.

• Some Stores have achieved these sales or earned these amounts. Your individual results may differ. There is no assurance that you will achieve these sales or earn as much.

Section VI – Domino’s Pizza Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️