Although the pay for Domino’s franchise owners tends to vary by location, Glassdoor indicates a yearly salary spectrum of $107,000 to $116,000 could be anticipated. Aside from a very good paycheck, franchise owners receive excellent benefits such as a 401k as well as insurance.
Owners often get a 50% discount on pizzas for relatives and friends. According to findings, over half of the franchisees own over one store, implying a much higher salary. Based on a franchise owner’s average take-home pay, it is entirely feasible to establish new outlets after saving around one year’s salary.
As per Domino’s estimates, establishing a traditional Domino’s franchise costs around $151,450 and $667,500, and establishing a non-traditional outlet costs around $101,450 and $648,500 (Item 7, FDD 2021). These expenses usually involve initial fees, lease, store modifications, as well as opening supplies.
Traditional stores are primarily found in shopping malls and other easily accessible major retailers, as well as inside select Walmart stores.
Non-traditional stores are located where access is much more restricted or specialized, including industrial buildings, shopping complexes, sporting venues, toll roads, and airports. Non-traditional stores typically only provide take-out services.
A Domino’s store’s average annual sales are $1,313,728 and its average EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is $203,628. The above leaves you with an operating revenue of slightly more than $200,000.
It’s important to keep in mind that this is merely an estimate. When you compare key performance indicators with other establishments in the same category, you might get an estimation of the sum of money you can make with a local Domino’s.
Factors Impacting Domino’s Franchise Owners’ Income
As said before, the amount of money earned by Domino’s Franchise owners depends greatly on a number of factors. They include;
-
Location
As a Domino’s Franchise owner, the intense competition in your area would most definitely impact your income. If this is the first Domino’s franchise to open in an area, it may require some time to develop a consistent clientele. Notwithstanding, in the bigger picture, you’ll be serving a local market with few competitors, which can end up driving progress over time.
-
Years in business
It is interesting to note that the majority of Domino’s franchise owners with the highest pay have already been successfully established in their respective jurisdictions for years or might very well hold multiple units. However, spending habits have changed immensely in successive periods, and creative standards are sprouting up everywhere, so opening a Domino’s franchise to meet an evolving need in your area could prove to be a solid strategy.
-
Operating costs
Acquiring a Domino’s franchise, just like numerous other enterprises, tends to come at a huge expense. Acquiring supplies, financing salaries, tax liabilities, loan repayments, and so forth are all part of the cost of running a Domino’s franchise.
Domino’s, like many food franchise opportunities, allows franchisees to review their own real estate at an additional and significant cost.
-
Business knowledge
You should also acknowledge that the potency of a Domino’s franchise is determined primarily by the franchise owner. When compared to somebody who lacks those attributes, a Domino’s franchise owner with effective business qualifications and experience is much more likely to generate huge revenue.
It’s understandable why Domino’s desires internal candidates for franchise ownership. Internal staff members are individuals who have become acquainted with the organization, how operations work, and the procedures and instruments that are used.
- The number of units
Numerous Domino’s Franchise owners begin with one unit, but with time, they get to expand and acquire other units. If you run a large number of profitable units, your income capacity will most likely increase.
Conclusion
Based on the net AUV for Domino’s franchise locations, it would take approximately 4.5 years to recuperate your capital at a 15% profit margin. This possibility is medium to long term than most franchise opportunities, and you might not receive a 15% profit margin, which might delay your return on investment.