Domino's Pizza franchise
A franchisee operates a Domino's Pizza Store selling pizza and other authorized menu items through delivery and carry-out service, either as a Traditional Store in a retail location or as a Non-Traditional Store in a venue such as an airport, stadium or convenience store.
Owner-operator required Disclosed
- Source
- 2026 Franchise Disclosure Document — Domino's Pizza Franchising LLC
- Document
- FDD 2026, issued 2026-04-01, amended 2026-07-29
- Item
- Item 15
- Page
- PDF p. 57
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640477
The Store must always be under the on-premises supervision of you or the Controlling Person.
Item 15 requires the Store to be under the on-premises supervision of the franchisee or the Controlling Person, who must devote full time to managing the Store or other Stores and commit fully to the business. The Controlling Person must own at least 51% of the entity and may not have financial or operational involvement in any business outside the Domino's system without written approval. Owners of more than one Store must also place each Store under a trained, disclosed manager. Developers under a Development Agreement face the same full-time commitment for their development area.
What stands out
- Total initial investment for a new Traditional Store is $231,450 to $743,500 on a leased site; the Non-Traditional format is $107,450 to $709,500.
- The initial fee is disclosed as a $0 to $10,000 range; $10,000 is the stated maximum for a new build and the $0 end reflects discretionary incentive waivers.
- Ongoing fees: 5.5% royalty plus 4% national advertising on weekly Royalty Sales, with cooperative contributions of 1-4% and a 9% cap on total required advertising.
5 more observations
- Item 19 reports average weekly unit sales of $27,267 for franchised U.S. Traditional Stores in 2025 (median $26,059, 6,655 stores) — a weekly gross sales figure, not annual revenue or profit.
- Item 19 also gives pro forma EBITDA margins by sales band, from 1.5% under $15,000 weekly sales to 14.4% above $30,000, based on unaudited franchisee statements from 6,571 stores.
- U.S. franchised outlets grew from 6,458 to 6,974 across 2023-2025; company-owned stores fell from 292 to 262 in 2025 mainly because 37 were sold to franchisees.
- Buyers must have at least 12 months' experience as a Domino's store general manager, own 51% or more of the entity, supervise on premises and personally guarantee the agreement.
- Affiliates supplied $2.7 billion of goods to franchisees in fiscal 2025, 55.4% of Domino's Pizza LLC's total revenues, plus $155 million in technology and related fees.
Things to verify
- Ask what the minimum net worth and liquidity requirements are for the number of stores you intend to operate — the FDD says they exist but never states the amounts.
- Confirm whether any royalty or advertising incentive, or an initial fee waiver, would actually apply to you, how long it lasts and on what terms it can be withdrawn.
- Item 19 is weekly, not annual; ask for the number of weeks reported and for the actual profit and loss statements of any specific store you are considering buying.
5 more questions
- The EBITDA table excludes owner compensation, debt service, capital expenditure and 325 franchised stores that did not submit usable statements — model your own financing costs.
- There is no exclusive territory; check how close the nearest areas of primary responsibility are and how the franchisor has adjusted delivery areas in your market.
- Costs largely flow to franchisor affiliates for food, PULSE hardware and software, online ordering and help desk; price the full technology stack over a ten-year term.
- Item 17 contains no arbitration clause and applies the law of the state where the store sits; ask counsel how that affects dispute costs.
- The franchisor can require relocation on renewal and refurbishment as a renewal condition; ask what recent renewals have cost existing franchisees.
Category cost placeholders, not a forecast. Owner operation is required; a manager-pay deduction does not make this an absentee model. This snapshot uses the default inputs; the calculator below updates when you edit them.
Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.
Read the full research overview
A Domino's Pizza franchisee operates a store selling pizza and other approved items for delivery and carry-out. The franchisor, Domino's Pizza Franchising LLC, is an indirect subsidiary of the publicly traded Domino's Pizza, Inc. and has franchised Traditional Stores since 1967; a Non-Traditional format for airports, stadiums, malls and convenience stores has been offered since 1990. Candidates for a single store must already have spent at least 12 consecutive months as a Domino's store general manager, and the person owning 51% or more of the entity must supervise the store on premises and stay out of unrelated businesses.
Item 7 puts the total initial investment for a new Traditional Store on a leased site at $231,450 to $743,500, including three months of additional funds and excluding any real estate purchase; the Non-Traditional format runs $107,450 to $709,500. The initial fee is disclosed as a range of $0 to $10,000, with $10,000 the stated maximum for a new build and lower or waived amounts available under discretionary growth incentives. Ongoing fees are 5.5% of weekly Royalty Sales in royalty and 4% to the national advertising fund, with advertising cooperative contributions of 1-4% and a 9% ceiling on total required advertising. Technology costs are substantial and mostly payable to affiliates: an $819.25 annual software enhancement fee, $0.385 per digital order, card processing and help desk charges, and an estimated $15,000 to $25,000 to acquire the PULSE point-of-sale system.
Item 19 reports weekly sales, not annual revenue and not profit. In 2025 the average U.S. franchised Traditional Store open all year took $27,267 a week in gross Royalty Sales, with a median of $26,059 across 6,655 stores and half of them at or above the average. A second table gives pro forma EBITDA as a percentage of Royalty Sales by sales band, from 1.5% for stores below $15,000 a week to 14.4% for stores above $30,000, based on unaudited profit and loss statements from 6,571 franchised stores. No dollar profit figure for any store is disclosed, and Non-Traditional Stores are absent from Item 19 entirely.
Item 20 shows a growing system: U.S. franchised outlets rose from 6,458 to 6,974 between 2023 and 2025, a net gain of 516, with 215 openings in 2025 against 9 terminations, 2 non-renewals, 2 reacquisitions and 4 other closures. Turnover of ownership is heavy — 491 outlets changed hands in 2025 and 1,564 over three years — and company-owned stores fell from 292 to 262 as 37 were sold to franchisees. Item 3 discloses a securities class action and five shareholder derivative suits against the public parent and its officers, plus unquantified joint-employer labour claims; Item 4 discloses no bankruptcies. Minimum net worth and liquidity requirements are said to exist but are not disclosed in the reviewed source.
View ratings and their supporting evidence
Transparent ratings
How these are computedEach dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.
How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.
Inputs
- Franchised outlets 6458 → 6974 (Item 20, Table 3)
- Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Inputs
- Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
- Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Inputs
- AUV $1,417,884 (annualized by us) ÷ midpoint investment $487,475 = 2.91×
- Thresholds: ≥2.0 → 5; 1.5–2.0 → 4; 1.0–1.5 → 3; 0.7–1.0 → 2; <0.7 → 1
How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.
Inputs
- Item 19 present (+1)
- Average plus median or a distribution (+1)
- Population 95% of franchised units, clearly described (+1)
- Cost or profit data disclosed (+1)
- Multi-year or cohort data (+1)
Details
- Missing: Annual AUV
- Franchisor Track Record
- Franchising 59 years (since 1967) · 7,236 outlets · Item 3: 6 matter(s) disclosed · Item 4: none disclosed
- Multi-Unit Scalability
- The franchisor may offer a Development Agreement giving the right to open a set number of Stores in a development area, with a minimum of one Store per year … · Owner-operator required
- Operational Intensity
- Owner-operator required
Initial investment
FDD Items 5 and 7Format shown: Domino's Pizza Traditional Store — new build on a leased site
$231,450–$743,500 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.
View full investment breakdown — Items 5 & 7
| Initial franchise fee (the named Item 5 fee only) | $0 Disclosed
Disclosed as 'Initial Fee'. Up to $10,000 for constructing a new Store or refranchising a closed Store; purchasing an existing Store is instead a $1,500 transfer fee. Amount and any waiver are at Domino's discretion under incentive programs. $10,000 Disclosed
Disclosed as 'Initial Fee'. Up to $10,000 for constructing a new Store or refranchising a closed Store; purchasing an existing Store is instead a $1,500 transfer fee. Amount and any waiver are at Domino's discretion under incentive programs. |
|---|---|
| Other required initial payments to the franchisor (Item 5) |
|
| Total initial investment — low | $231,450 Disclosed
|
| Total initial investment — high | $743,500 Disclosed
|
| Midpoint of range | $487,475 Derived
|
| Real estate purchase included? | No — assumes a leased site |
| Additional funds assumed | 3 months |
| Required liquid capital | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Domino's Pizza Franchising LLC; we do not fill gaps with estimates or third-party figures. Items 1 and 11 both state that there are minimum net worth and liquidity requirements depending on the number of Stores to be developed or purchased, but no dollar amounts are given anywhere in the reviewed document. |
| Required net worth | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Domino's Pizza Franchising LLC; we do not fill gaps with estimates or third-party figures. See liquidity note: minimum net worth requirements are said to exist but are not quantified in the reviewed document. |
Figures are for a new Traditional Store on a leased site; the table assumes a lease (leasehold improvements, three months' rent and a security deposit) and contains no land or building purchase. Delivery vehicles are excluded because the franchisor does not require franchisees to buy or lease them. Item 6 separately estimates $15,000 to $25,000 per store to acquire the required Domino's PULSE point-of-sale hardware and software; the Item 7 rows for equipment and miscellaneous costs are where those amounts appear. Item 7 Explanatory Note (10) states that of all company-owned stores sold to franchisees in 2025, two exceeded the top of the Item 7 range. No initial investment is required to sign a Development Agreement, but a full investment is required for each Store opened in the development area.
Item 7 line items (12)
| Expenditure | Low | High |
|---|---|---|
| Initial Fee — Paid to the franchisor when approved. | $0 | $10,000 |
| Leasehold improvements — Paid to landlord or third party; site must be leased and lease approved. | $67,000 | $350,000 |
| Furniture, fixtures and equipment — Paid to Domino's Pizza Distribution LLC or another approved supplier. | $105,000 | $145,000 |
| Signage | $8,200 | $35,000 |
| Three months' rent | $6,000 | $25,000 |
| Security deposit | $1,000 | $10,000 |
| Opening inventory and supplies | $4,750 | $6,500 |
| Opening advertising and promotion — Excludes Advertising Fund and cooperative contributions. | $0 | $3,000 |
| Training expenses — Travel and living costs are the participant's responsibility and are not included. | $1,000 | $4,000 |
| Insurance — Estimated annual premium for a Traditional Store. | $25,000 | $75,000 |
| Miscellaneous opening costs — Telephone, connectivity, utility deposits and similar items. | $3,500 | $7,000 |
| Additional funds — 3 months — Excludes ongoing inventory purchases, royalties, advertising payments and debt service. | $10,000 | $73,000 |
Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — Domino's Pizza Franchising LLC (table begins PDF p. 30) — rows inherit the table's citation rather than carrying fifteen identical ones.
Other formats disclosed in Item 7 (1)
| Format | Low | High | Fee |
|---|---|---|---|
| Domino's Pizza Non-Traditional Store (airport, stadium, convenience store and similar venues; usually carry-out only) | $107,450 | $709,500 | $10,000 |
Ongoing fees
FDD Item 6Royalty
5.5% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Domino's Pizza Franchising LLC
- Document
- FDD 2026, issued 2026-04-01, amended 2026-07-29
- Item
- Item 6 — Item 6 Table — Royalty Fee
- Page
- PDF p. 22
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640477
5.5% of Store's weekly Royalty Sales
Charged on weekly 'Royalty Sales', defined as total receipts from all authorized products and services sold at the Store or at an approved off-site location, excluding sales taxes and approved coupons and discounts. Paid weekly by electronic funds transfer. Item 6 note (2) says the franchisor may temporarily reduce royalties under discretionary incentive programs.
Brand advertising fund
4% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Domino's Pizza Franchising LLC
- Document
- FDD 2026, issued 2026-04-01, amended 2026-07-29
- Item
- Item 6 — Item 6 Table — Advertising Fund
- Page
- PDF p. 22
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640477
4% of weekly Royalty Sales to the national Advertising Fund, administered by Domino's National Advertising Fund Inc. Non-Traditional Stores may receive a quarterly rebate or credit of up to 3.5 of the 4 percentage points for local advertising, and some Non-Traditional franchisees who signed before April 2025 contribute at a different rate. The franchisor may waive part of the contribution at its discretion.
Local marketing
2% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Domino's Pizza Franchising LLC
- Document
- FDD 2026, issued 2026-04-01, amended 2026-07-29
- Item
- Item 6 — Item 6 Explanatory Note (6)
- Page
- PDF p. 28
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640477
Where no advertising cooperative exists, or where cooperative members have not agreed on a rate, the franchisor may require the franchisee to spend or contribute an amount it specifies of up to and including 2% of weekly Royalty Sales on local advertising. Item 6 caps the total the franchisor can require for the national fund plus local and regional advertising at 9% of weekly Royalty Sales.
Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.
View all recurring fees and conditions
| Royalty | 5.5% of gross sales Disclosed
Charged on weekly 'Royalty Sales', defined as total receipts from all authorized products and services sold at the Store or at an approved off-site location, excluding sales taxes and approved coupons and discounts. Paid weekly by electronic funds transfer. Item 6 note (2) says the franchisor may temporarily reduce royalties under discretionary incentive programs. Charged on weekly 'Royalty Sales', defined as total receipts from all authorized products and services sold at the Store or at an approved off-site location, excluding sales taxes and approved coupons and discounts. Paid weekly by electronic funds transfer. Item 6 note (2) says the franchisor may temporarily reduce royalties under discretionary incentive programs. |
|---|---|
| Advertising / brand fund | 4% of gross sales Disclosed
4% of weekly Royalty Sales to the national Advertising Fund, administered by Domino's National Advertising Fund Inc. Non-Traditional Stores may receive a quarterly rebate or credit of up to 3.5 of the 4 percentage points for local advertising, and some Non-Traditional franchisees who signed before April 2025 contribute at a different rate. The franchisor may waive part of the contribution at its discretion. 4% of weekly Royalty Sales to the national Advertising Fund, administered by Domino's National Advertising Fund Inc. Non-Traditional Stores may receive a quarterly rebate or credit of up to 3.5 of the 4 percentage points for local advertising, and some Non-Traditional franchisees who signed before April 2025 contribute at a different rate. The franchisor may waive part of the contribution at its discretion. |
| Required local marketing | 2% of gross sales Disclosed
Where no advertising cooperative exists, or where cooperative members have not agreed on a rate, the franchisor may require the franchisee to spend or contribute an amount it specifies of up to and including 2% of weekly Royalty Sales on local advertising. Item 6 caps the total the franchisor can require for the national fund plus local and regional advertising at 9% of weekly Royalty Sales. Where no advertising cooperative exists, or where cooperative members have not agreed on a rate, the franchisor may require the franchisee to spend or contribute an amount it specifies of up to and including 2% of weekly Royalty Sales on local advertising. Item 6 caps the total the franchisor can require for the national fund plus local and regional advertising at 9% of weekly Royalty Sales. |
| Technology / software | $819/year Disclosed
Annual Software Enhancement Fee for Domino's PULSE core software after the first year; it cannot rise more than 5% a year unless a higher increase is recommended by the Domino's Operations Advisory Council. Item 6 note (7) estimates total per-store annual cost for required maintenance, support contracts, third-party licences and upgrades at an average of no more than $7,000, and one-time PULSE hardware and software acquisition at $15,000 to $25,000. A $4,200 PULSE initial licence fee, a $0.385 per digital order technology transaction fee, a $0.0525 per transaction credit card processing fee, help desk charges of $44 per call and $28 per chat, and a $1,200 per year connectivity fee (if broadband is available but not maintained) are charged separately. Annual Software Enhancement Fee for Domino's PULSE core software after the first year; it cannot rise more than 5% a year unless a higher increase is recommended by the Domino's Operations Advisory Council. Item 6 note (7) estimates total per-store annual cost for required maintenance, support contracts, third-party licences and upgrades at an average of no more than $7,000, and one-time PULSE hardware and software acquisition at $15,000 to $25,000. A $4,200 PULSE initial licence fee, a $0.385 per digital order technology transaction fee, a $0.0525 per transaction credit card processing fee, help desk charges of $44 per call and $28 per chat, and a $1,200 per year connectivity fee (if broadband is available but not maintained) are charged separately. |
| Advertising cooperative | 1%–4% of gross sales Disclosed
Item 6 lists advertising cooperative contributions at 1-4% of weekly Royalty Sales. If a cooperative exists and 65% or more of its Stores agree or are contractually obligated to contribute a given percentage, the franchisee must contribute the same percentage; the franchisor may require no less than 2%. Company-operated stores contribute and vote on the same basis as franchised stores. Item 6 lists advertising cooperative contributions at 1-4% of weekly Royalty Sales. If a cooperative exists and 65% or more of its Stores agree or are contractually obligated to contribute a given percentage, the franchisee must contribute the same percentage; the franchisor may require no less than 2%. Company-operated stores contribute and vote on the same basis as franchised stores. |
| Transfer fee | $1,500 one-time Disclosed
Payable before any transfer of the Franchise Agreement, the Store's assets or an ownership interest. Item 5 states that a purchaser of an existing Store pays this $1,500 transfer fee instead of an Initial Fee. Payable before any transfer of the Franchise Agreement, the Store's assets or an ownership interest. Item 5 states that a purchaser of an existing Store pays this $1,500 transfer fee instead of an Initial Fee. |
| Renewal fee | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Domino's Pizza Franchising LLC; we do not fill gaps with estimates or third-party figures. Neither the Item 6 fee table nor the Item 17 renewal rows list a renewal fee. Item 17 requires the franchisee to sign the then-current form of franchise agreement and, if the franchisor decides, to refurbish or relocate the Store on renewal; those costs are not quantified. |
| Royalty + ad fund (% of sales) | 9.5% Derived
|
Fee schedule (19 fees; 17 verified against the source, 2 single-pass)
Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.
| Fee | Amount | Frequency | Mandatory | Verification | Cite | Notes |
|---|---|---|---|---|---|---|
| Royalty Fee | 5.5% of gross sales | weekly | Yes | verified (2-pass) | Item 6, p. 22 | |
| Advertising Fund | 4% of gross sales | weekly | Yes | verified (2-pass) | Item 6, p. 22 | Certain Non-Traditional Store franchisees who signed before April 2025 may contribute at a different rate; Non-Traditional Stores may receive a quarterly rebate/credit of up to 3.5 of the 4 points for local advertising. |
| Advertising Cooperatives | 1%–4% of gross sales | weekly | No | verified (2-pass) | Item 6, p. 22 | Only applies where an advertising cooperative exists for the Store's market; percentage set by cooperative vote or franchisor. |
| Local advertising / cooperative layer (conditional) | 2% of gross sales | weekly | Conditional | verified (tie-break) | Item 6, p. 28 | Two mutually exclusive branches (Item 6 note 6): where a cooperative exists and 65% of Stores agree a rate, you pay that co-op rate (franchisor may require no less than 2%); where no cooperative exists or no rate is agreed, you spend 'an amount we specify up to and including 2%' on local advertising — a franchisor-discretionary amount with a 2% ceiling, not an automatic 2%. Combined national + local/regional advertising is capped at 9% of weekly Royalty Sales. Verification 2026-09-03: re-read against Item 6 note 6 (p. per source); reclassified from mandatory percent_of_revenue to conditional ceiling assumption per the source text. |
| Third Party Vendor Pulse Fees | Not stated | annual | Yes | verified (tie-break) | Item 6, p. 23 | Paid annually as invoiced and subject to adjustment by DPL based on third-party vendor costs; charges may be invoiced separately for individual vendor services included within this fee. Page corrected to 23 (Pass A cited 22). No amount is disclosed; the third-party licence element sits inside the $7,000 annual PULSE ceiling, so overlaps_with points at pulse-annual-technology-cost rather than at the enhancement fee (Pass A's reading). |
| Annual Software Enhancement Fee | $819 | annual | Yes | verified (2-pass) | Item 6, p. 23 | |
| Help Desk/Software Support Services | $44 | per event | Yes | verified (tie-break) | Item 6, p. 23 | A Domino's Pizza Help Desk Services Agreement with DPL is mandatory for the entire term of the PULSE Software License Agreement; charges accrue per contact. The table prints two unit prices, so amount_type is fixed with both rates carried in tiers (Pass B's encoding) rather than variable (Pass A). Frequency is per_event, not 'varies'. Category is technology, not call_center: Item 6 note (7) puts help desk and support services inside the PULSE technology estimate. |
| Connectivity Fee | $1,200 | annual | No | verified (2-pass) | Item 6, p. 23 | Only applies where the Store lacks high-speed broadband connectivity. |
| Flex Client Fee | $150 | per event | No | verified (tie-break) | Item 6, p. 23 | Payable to DPL (or a third party on DPL's behalf) only if Google Chrome OS is used in connection with any of the franchisee's devices. Page 23 confirmed. Frequency is per_event (charged on each device and again on replacement), not 'varies'. Basis is 'other' with the per-device denominator in basis_note; 'per_unit' in the schema denotes a per-outlet basis, which this is not. Pass A's excluded_immaterial understates it - a multi-device store can face several hundred dollars - so requires_assumption is used. |
| Annual Service Fee for Application Processing (SmartRecruiters) | $432 | annual | Yes | verified (2-pass) | Item 6, p. 23 | |
| Technology Transaction Fee | $0 | per event | Yes | verified (tie-break) | Item 6, p. 24 | May be increased or decreased pursuant to the terms of the Online Ordering Franchise Services Agreement; may also absorb up-front and ongoing fees for future Additional Order Systems. Page 24 confirmed. Both passes read $0.385 per digital order; only frequency differed, and per_event is correct for a per-order charge. The conflict file lists this fee twice (once mis-paired, once as 'listed only by Pass B') - it is a single fee found by both passes. |
| Credit Card Processing Fee | $0 | per event | Yes | verified (tie-break) | Item 6, p. 24 | Paid to an outside vendor and remitted to DPF by that vendor to cover credit card security and related costs. This sits on top of ordinary card interchange and merchant costs, which the FDD does not quantify. Page 24 confirmed. Passes agree on the amount; frequency resolved to per_event. |
| Spanish Language Call Center Program Fee | $3 | monthly | No | verified (2-pass) | Item 6, p. 24 | Only applies to Stores that opt to use the Spanish-language call center service. |
| Audit Expenses | Not stated | per event | No | single-pass | Item 6, p. 24 | Only triggered by an audit revealing understatement >2% or a failure to submit required reports. [Listed by one verification pass only (A); not independently confirmed.] |
| Interest on Late Payments | Not stated | per event | No | verified (tie-break) | Item 6, p. 25 | Payable on all overdue amounts only. Page corrected to 25 (Pass A cited 24). Listed only by Pass A but genuinely present in the Item 6 table, so it is kept. |
| Costs of Enforcement/Non-compliance | $20–$30 | per event | No | single-pass | Item 6, p. 24 | Triggered only by non-compliance/enforcement action or unresolved customer complaints. [Listed by one verification pass only (A); not independently confirmed.] |
| Environmental / Extended Producer Responsibility (EPR) Costs | Not stated | varies | No | verified (tie-break) | Item 6, p. 27 | Currently applies to Stores in Oregon and Colorado only; amounts may change based on legal requirements. Page 27 confirmed. Both passes found this fee under different ids (Pass A 'environmental-epr-costs', Pass B 'epr-costs'); the longer id is kept. unknown_amount is preferred to Pass A's excluded_immaterial because no amount is disclosed at all. |
| Meraki Licensing | $280 | annual | Yes | verified (2-pass) | Item 6, p. 26 | Citation audit 2026-09-04: page corrected 25 -> 26 (value verified on p. 26). |
| Insurance premiums | $25,000–$75,000 (min $25,000/annual) | annual | Yes | verified (tie-break) | Item 7, p. 32 | Paid to an insurance company, not to DPF or its affiliates. The FDD warns the cost 'may be significantly higher depending on the state coverage requirements, store location and your loss history.' Page 32 confirmed verbatim. Missed by Pass A because it sits in Item 7, not the Item 6 fee table; it is nonetheless a disclosed, mandatory, quantified annual operating cost and the schema provides an 'insurance' category for it. Calculator audit 2026-09-03: The entry is requires_assumption with amount_type 'variable', so the engine's seeding rule (which only annualizes an amount_type of 'fixed') found no floor and silently pushed a $25k-$75k mandatory cost into the excluded list; giving it an explicit annual `minimum` seeds the editable line at the disclosed low end instead of nothing. (p. 32; "We estimate that annual insurance premiums for a traditional Domino's Pizza Trad") |
Item 6 note (2) states the franchisor may reduce weekly royalties and reduce or eliminate advertising contributions for a period under discretionary incentive programs, and may modify or end those programs at will. Other charges in the Item 6 table include audit costs plus 1.5% monthly interest where an understatement exceeds 2%, interest on late payments at the lesser of 1.5% per month or the highest legal rate, training fees of up to $1,250 per session plus up to $500 per supplemental class, inspection costs, a $500 expedited server order fee, customer care charges of $20-$30 per escalated customer contact, and equipment bundles such as a $4,444.30 server pair and a $1,039.34 Meraki router/access point bundle.
Financial performance (Item 19)
What the franchisor actually disclosedWho is represented: Average and median weekly unit sales for Domino's Pizza Traditional Stores in the United States, excluding stores in Guam, Puerto Rico and the U.S. Virgin Islands, for calendar years 2021 through 2025. Only stores open and operational for the full twelve months of the year are counted. For 2025 the population was 6,655 franchised stores and 250 company-owned stores (6,905 total); figures are shown separately for franchised, company-owned and combined stores. Non-Traditional Stores are not represented. The separate EBITDA table is based on profit and loss statements submitted by 6,571 franchised stores out of the 6,896 franchised stores open at the end of fiscal 2025: 84 stores did not submit or submitted incomplete or improperly prepared statements and 241 were not operational for the full year, so 325 stores were excluded.
Qualifications: The headline sales figures are weekly, not annual, and are gross Royalty Sales rather than profit. They cover only Traditional Stores in the 50 states that were open and operational for a full twelve months, so newer stores, Non-Traditional Stores and stores in Guam, Puerto Rico and the U.S. Virgin Islands are excluded. Company-owned stores are reported separately and are also folded into the combined rows. The EBITDA percentages are pro forma figures derived from profit and loss statements submitted by franchisees, are grouped by sales band rather than reported for the system as a whole, and exclude 325 franchised stores that did not submit usable statements or were not open all year. EBITDA is defined as Royalty Sales less variable and cash fixed costs plus supply chain profit sharing and volume discount rebates; it is before interest, taxes, depreciation and amortization, and the cost categories include manager salary but no owner compensation, debt service or capital expenditure. The franchisor also notes it may give prospects supplemental site-specific projections from its internal siting model, which are not part of this Item 19.
View full Item 19 disclosure and tables
Item 19 reports how much a Domino's store sells in a week, not what it earns in a year. For 2025 the average U.S. franchised Traditional Store open the whole year took in $27,267 a week in gross Royalty Sales and the median store $26,059, across 6,655 stores; half of those stores reached or beat the average. The five-year series shows the franchised average moving from $26,004 in 2021 to $27,267 in 2025. The second half of Item 19 is a cost and margin table: franchised stores are sorted into five weekly-sales bands, and for each band the franchisor shows variable costs, cash fixed costs and resulting EBITDA as a percentage of Royalty Sales, rising from 1.5% in the lowest band to 14.4% in the highest. Those percentages come from franchisee-submitted profit and loss statements for 6,571 stores and are not audited. Item 19 gives no dollar profit for any store, no balance-sheet or financing costs, and no figures at all for Non-Traditional Stores.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Average weekly unit sales — U.S. franchised Traditional Stores open all of 2025 50% of units met or exceeded 2,963 franchised stores, or 50%, achieved or exceeded this average during 2025. Prior-year franchised AWUS: $26,004 (2021), $25,554 (2022), $25,825 (2023), $26,467 (2024). | Franchised Average | $27,267 | 6,655 | CY2025 | FDD p.65 |
| Median weekly unit sales — U.S. franchised Traditional Stores open all of 2025 | Franchised Median | $26,059 | 6,655 | CY2025 | FDD p.65 |
| Average weekly unit sales — U.S. company-owned Traditional Stores open all of 2025 45% of units met or exceeded 126 of the 250 company-owned stores, or 45%, achieved or exceeded this average. | Company-owned Average | $26,728 | 250 | CY2025 | FDD p.65 |
| Average weekly unit sales — all U.S. Traditional Stores (franchised and company-owned) open all of 2025 45% of units met or exceeded 3,089 of 6,905 stores achieved or exceeded the combined average; the FDD prints 45% for the combined 2025 row (3,089 of 6,905 is about 45%). | Combined system Average | $27,248 | 6,905 | CY2025 | FDD p.65 |
Disclosed cost and profit figures
These figures are disclosed by the franchisor for the population stated in each row — often a subset (company-owned units, or franchisees who chose to report). They frequently exclude owner compensation, rent, debt service, taxes or royalties. They are not a prediction of your results.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Pro forma EBITDA as a percentage of Royalty Sales — franchised stores with average weekly sales under $15,000 Total variable costs 79.7% and total cash fixed costs 21.6% of Royalty Sales; 223 of 470 stores met or beat the 1.5% EBITDA. | AWUS under $15,000 Other | 1.5% | 470 | FY2025 | FDD p.66 |
| Pro forma EBITDA as a percentage of Royalty Sales — franchised stores with average weekly sales of $15,001-$20,000 Total variable costs 78.8% and total cash fixed costs 17.6%; 528 of 1,056 stores met or beat the 6.3% EBITDA. | AWUS $15,001-$20,000 Other | 6.3% | 1,056 | FY2025 | FDD p.66 |
| Pro forma EBITDA as a percentage of Royalty Sales — franchised stores with average weekly sales of $20,001-$25,000 Total variable costs 77.7% and total cash fixed costs 15.4%; 753 of 1,448 stores met or beat the 9.6% EBITDA. | AWUS $20,001-$25,000 Other | 9.6% | 1,448 | FY2025 | FDD p.66 |
| Pro forma EBITDA as a percentage of Royalty Sales — franchised stores with average weekly sales of $25,001-$30,000 Total variable costs 77.1% and total cash fixed costs 13.8%; 730 of 1,402 stores met or beat the 11.8% EBITDA. | AWUS $25,001-$30,000 Other | 11.8% | 1,402 | FY2025 | FDD p.66 |
| Pro forma EBITDA as a percentage of Royalty Sales — franchised stores with average weekly sales above $30,000 Total variable costs 76.6% and total cash fixed costs 11.6%; 1,037 of 2,195 stores met or beat the 14.4% EBITDA. | AWUS $30,001 and above Other | 14.4% | 2,195 | FY2025 | FDD p.66 |
System health (Item 20)
Outlets, openings, exits and transfers by fiscal year · U.S. onlyView detailed Item 20 tables and source notes
| Fiscal year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased — other | End | Transfers | Company-owned (end) |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 6,458 | 179 | 8 | 1 | 0 | 7 | 6,621 | 523 | 288 |
| 2024 | 6,621 | 164 | 2 | 1 | 0 | 6 | 6,776 | 550 | 292 |
| 2025 | 6,776 | 215 | 9 | 2 | 2 | 4 | 6,974 | 491 | 262 |
Disclosed 2026 Franchise Disclosure Document — Domino's Pizza Franchising LLC, Item 20, Tables 1–3 (PDF p. 68). Domino's presents Item 20 as separate sets of tables for Traditional Stores, Non-Traditional Stores and Development Agreements. The figures here add the Traditional and Non-Traditional outlet tables together; Development Agreements are contracts, not outlets, and are excluded. Traditional franchised outlets went 6,438 to 6,600 (2023), 6,600 to 6,751 (2024) and 6,751 to 6,948 (2025); Non-Traditional franchised outlets went 20 to 21, 21 to 25 and 25 to 26 over the same years. Table No. 2 transfers were 523, 550 and 490 for Traditional outlets plus 0, 0 and 1 for Non-Traditional; no Development Agreements were transferred. The 2025 drop in company-owned stores from 292 to 262 is driven by 37 stores sold to franchisees, 36 of them in Maryland, offset by 5 openings and 2 stores reacquired from franchisees. Tables cover the U.S. states plus Guam, Puerto Rico and the U.S. Virgin Islands. The separate Development Agreement tables show agreements rising from 168 to 356 over the three years, with 38 non-renewals and 30 mutual terminations in 2025 alone. Item 20 also states that 103 franchisees and 59 developers left the system or stopped communicating during fiscal 2025, and that the franchisor uses no confidentiality clauses that would stop franchisees discussing their experience.
Source data notes (10) — inconsistencies found in the FDD itself during verification
Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.
- [D/minor] Table No. 1 / Table No. 2 / Table No. 3: Domino's prints Tables 1, 2 and 3 as separate Traditional and Non-Traditional tables, each with its own Totals row, instead of one combined system-wide table. Any single 'TOTAL' field must be the sum of the two Totals rows. — Legitimate table-definition difference, not an error. The record correctly sums both Totals rows: franchised units 6,600+21=6,621 (FY2023 end), 6,751+25=6,776 (FY2024 end), 6,948+26=6,974 (FY2025 end); FY2024 openings 160+4=164; FY2025 transfers 490+1=491. Both components are corroborated by the two Table No. 1 summaries (p.68). Non-Traditional is at most 26 outlets, 0.38% of start-of-year franchised units, so the totals themselves are not in doubt.
- [A/minor] Table No. 3 2024: The two passes disagreed on FY2024 TOTAL openings: 160 (Traditional Totals row, p.78) versus 164 (Traditional plus Non-Traditional, p.78 + p.80). — Extraction error in Pass B: it read only the Traditional Totals row. Correct figure is 164 (160 on p.78 plus 4 on p.80). The record already holds 164 and it foots: 6,621 + 164 - 2 - 1 - 0 - 6 = 6,776, matching the combined Table No. 1 end-of-year count.
- [D/minor] Table No. 3 (Traditional and Non-Traditional): Footing check of start + opened - terminations - non-renewals - reacquired - ceased other = end, for FY2023-FY2025 in both Table 3 variants, and carry-forward of each year's end into the next year's start. — No discrepancy. Both passes independently footed every year in both tables and both reconcile exactly; Table No. 1 (p.68) corroborates the Table No. 3 end-of-year totals (6,600/6,751/6,948 Traditional franchised, 21/25/26 Non-Traditional franchised, 288/292/262 company-owned) with no carry-forward breaks. Table No. 4 (p.86) and Table No. 5 (p.87) also foot.
- [D/minor] Item 20 (all tables): Item 20 covers only U.S. Domino's Pizza Stores franchised or operated by DPF; DP International Franchising Inc.'s 14,956 international franchises and 35 Belarus franchises disclosed in Item 1 are outside it. — Legitimate scope definition, not an inconsistency. Item 20 is U.S.-only by construction and the record carries us_only=true. The caution is only for cross-brand comparison: this brand's headline unit count is U.S. domestic and is not comparable to a worldwide count.
- [D/minor] Item 20 Table No. 3 vs Item 19 2025: Item 20 includes U.S. territories - GUAM 7, PR 43, U.S.V.I. 2 at FY2025 year-end - which Item 19 expressly excludes, so the two Items print different franchised store counts. — Definition difference explained by the documents themselves. Table 3 Traditional franchised end of 2025 is 6,948 (p.78); less the 52 territory outlets gives 6,896, exactly the franchised store count Item 19 cites at p.66 ('At the end of 2025, there were 6,896 franchised' Stores). The two Items reconcile once the territory exclusion is applied.
- [D/minor] Table No. 4 2025: Company-owned outlets fell 292 to 262 in FY2025, a net -30, the only negative movement anywhere in Item 20. — Explained by the table's own columns, not an error: 292 start + 5 opened + 2 reacquired - 0 closed - 37 sold to franchisees = 262 (Totals row, p.86), and 36 of the 37 are the entire Maryland company market going from 36 to 0. This is a one-off refranchising, not closures. It should be presented as a divestiture rather than as company-owned attrition, and it does not touch franchised-unit growth, which was +198 in 2025.
- [D/minor] Table No. 3 (Development Agreements): The Development Agreement Table No. 3 reuses the outlet column headings and shows heavy churn - FY2023 Totals 168 start, 171 opened, 22 non-renewals, 90 ceased other, 226 end (p.85) - with DA counts running 168, 226, 323, 356. — The rows count development AGREEMENTS, not outlets, despite sharing the column headings; the Totals row foots (168+171-1-22-0-90=226). No DA figure may be mixed into outlet counts, openings or closures. It is a signal about the pipeline's volatility, not a unit-count discrepancy.
- [D/minor] Exhibit B-2 vs Table No. 3 2025: Exhibit B-2 lists 103 franchisees and 59 developers who left the system in FY2025, far more than the 17 franchised-outlet losses Table 3 records for 2025 (9 terminations + 2 non-renewals + 2 reacquisitions + 4 ceased other). — Not an inconsistency: the exhibit counts franchisees and developers, including transferors (490 Traditional outlet transfers in 2025) and franchisees who have not communicated within 10 weeks, whereas Table 3 counts outlets. The two are not comparable and only the Table 3 figures may drive attrition.
- [D/minor] Table No. 2: Transfer volume is high relative to the system - 490 Traditional outlet transfers in FY2025 against 6,948 franchised outlets, about 7%, with TX at 130 and CA at 101 in 2024 - and transfers are excluded from Table 3, which is why Table 3 shows so little movement. — Correct by definition: Table No. 2 is a separate transfers table and its outlets do not leave the system, so they are absent from Table 3. Totals verified at 523/550/490 Traditional (p.73) plus 0/0/1 Non-Traditional (p.73), giving the record's 523/550/491. Transfers must not be added to closures or attrition.
- [D/minor] Table No. 5 2026: Table No. 5 is a single combined projection table with no Traditional/Non-Traditional split and includes a GUAM row of zeros; it projects 188 new franchised outlets, sitting between the 160 and 214 Traditional outlets actually opened in 2024 and 2025. — No discrepancy. Totals row 29 signed-not-open / 188 projected franchised / 7 projected company-owned verified on p.87. The comparison should be against the COMBINED actual openings of 164 (2024) and 215 (2025), not the Traditional-only 160 and 214, but the projection still falls between them either way.
Company-owned outlets (Table 4)
| Year | Start | Opened | Reacquired from franchisee | Closed | Sold to franchisee | End |
|---|---|---|---|---|---|---|
| 2023 | 286 | 4 | 0 | 1 | 1 | 288 |
| 2024 | 288 | 7 | 0 | 1 | 2 | 292 |
| 2025 | 292 | 5 | 2 | 0 | 37 | 262 |
Read: How to read Item 20.
Ownership and operations
Items 11, 12, 15, 17Owner-operator required Disclosed
- Source
- 2026 Franchise Disclosure Document — Domino's Pizza Franchising LLC
- Document
- FDD 2026, issued 2026-04-01, amended 2026-07-29
- Item
- Item 15
- Page
- PDF p. 57
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640477
The Store must always be under the on-premises supervision of you or the Controlling Person.
Item 15 requires the Store to be under the on-premises supervision of the franchisee or the Controlling Person, who must devote full time to managing the Store or other Stores and commit fully to the business. The Controlling Person must own at least 51% of the entity and may not have financial or operational involvement in any business outside the Domino's system without written approval. Owners of more than one Store must also place each Store under a trained, disclosed manager. Developers under a Development Agreement face the same full-time commitment for their development area.
View operating requirements, territory and contract term
| Owner involvement (Item 15) | Owner-operator required Disclosed
Item 15 requires the Store to be under the on-premises supervision of the franchisee or the Controlling Person, who must devote full time to managing the Store or other Stores and commit fully to the business. The Controlling Person must own at least 51% of the entity and may not have financial or operational involvement in any business outside the Domino's system without written approval. Owners of more than one Store must also place each Store under a trained, disclosed manager. Developers under a Development Agreement face the same full-time commitment for their development area. Item 15 requires the Store to be under the on-premises supervision of the franchisee or the Controlling Person, who must devote full time to managing the Store or other Stores and commit fully to the business. The Controlling Person must own at least 51% of the entity and may not have financial or operational involvement in any business outside the Domino's system without written approval. Owners of more than one Store must also place each Store under a trained, disclosed manager. Developers under a Development Agreement face the same full-time commitment for their development area. |
|---|---|
| Initial training | Before approval, the Controlling Person must complete every required track of Franchise Management School: Admissions (about 45-75 hours of online or classroom training plus about 1-5 hours on the job, in the candidate's market), Undergrad Class (about 8 hours a day for 3 days, in Ann Arbor, Michigan or online at the franchisor's discretion), Pre-Grad School (about 45-75 hours in the candidate's market) and Grad School (about 8 hours a day for 2 days, Ann Arbor or online). Candidates for a single store must already have been a successful Domino's store general manager for at least 12 consecutive months; multi-unit candidates need 12 months as a store supervisor or above. The franchisor may charge up to $1,250 per training program and up to $500 per supplemental class, and the franchisee pays travel and living costs. Once training is complete, the candidate has one year to acquire a franchise before some or all programs may have to be repeated. Franchisees are responsible for training their own managers and team members. Disclosed
|
| Multi-unit / development options | The franchisor may offer a Development Agreement giving the right to open a set number of Stores in a development area, with a minimum of one Store per year and each site subject to approval. No initial investment is due when the Development Agreement is signed, but a $25,000 reservation fee is payable for each required Store not leased, under construction or opened on schedule. Multi-unit franchises are granted at the franchisor's discretion to candidates who have been a successful store supervisor or above for at least 12 months. A developer receives a development area in which the franchisor will not operate or franchise another Store during the term, but no exclusive territory. Development Agreements grew from 168 to 356 between 2023 and 2025. Disclosed
|
| Territory (Item 12) | No exclusive territory is granted under either franchise agreement. A Traditional Store receives an 'area of primary responsibility', generally a one-mile radius around the store or an equivalent written description, and about a half-mile radius in densely populated areas; the franchisor and its affiliates will not operate or franchise another Store whose area of primary responsibility overlaps it. A Non-Traditional Store's area of primary responsibility is only the premises of the store. Enclosed malls, hospitals, airports, parks, stadiums and similar venues are carved out, with the franchisee given a first option to serve them subject to approval. The franchisor sets and may adjust the delivery and service area at its discretion, and the franchisee may not change its boundaries without consent. Keeping the area does not depend on hitting any sales volume or market penetration target. The agreements do not stop the franchisor from selling similar products through other channels or under other brands in the area. Disclosed
|
| Initial term | 10 years Disclosed
Ten years under both the Traditional Store Standard Franchise Agreement and the Non-Traditional Store Franchise Agreement. |
| Renewal | One 10-year renewal if conditions are met: written notice, no material default, substantial compliance as defined in the agreement, signing the then-current form of franchise agreement (which may differ materially from the original), keeping possession of the Store or securing approved substitute premises, and completing refurbishment or, if the franchisor decides, relocating and developing new premises to current standards. The franchisee may also be asked to submit a renewal application. No renewal fee is listed in Item 6 or Item 17. Disclosed
|
| Staffing | Item 15 requires that a franchisee owning more than one Store place each Store under the on-premises supervision of a properly trained manager whose identity is disclosed to the franchisor and who signs an agreement not to disclose confidential information or work for a competing carry-out or delivery pizza business. The reviewed document does not state a typical headcount or required operating hours. Disclosed
|
Risk and legal observations
Items 3, 4, 8, 15, 17 — summarized neutrallyLitigation: 6 matter(s) disclosed Disclosed · Bankruptcy: None disclosed Disclosed
View legal disclosures, restrictions and guarantees
| Litigation (Item 3) | 6 matter(s) disclosed Disclosed Item 3 lists six named pending matters, all involving the publicly traded parent Domino's Pizza, Inc. and its officers and directors rather than franchise disputes. One is a federal securities class action in the Eastern District of Michigan, led by the State of Rhode Island Office of the General Treasurer, alleging that statements about global net store growth between December 2023 and July 2024 were misleading; a motion to dismiss was fully briefed as of September 2025. The other five are shareholder derivative suits (Ayers, Joshi, Kassner, Chu and Walker) filed between January 2025 and February 2026, alleging breach of fiduciary duty, unjust enrichment and insider trading by directors and officers; they are stayed pending the motion to dismiss in the securities case, and three have been consolidated. The defendants state they intend to defend all of these actions. Item 3 also says, without giving a number, that Domino's Pizza LLC has been named in several labor and employment lawsuits brought by employees of franchisees claiming the franchisor is a joint employer; the franchisor disputes those allegations. No concluded actions and no actions commenced against franchisees during the last fiscal year are reported. |
|---|---|
| Bankruptcy (Item 4) | None disclosed Disclosed Item 4 states that no bankruptcy is required to be disclosed. |
| Personal guaranty | Required Disclosed
If the franchisee is a corporation, partnership or limited liability company, the Controlling Person must personally guarantee the franchise or development agreement, be personally liable for every breach, and be bound by the confidentiality and non-competition provisions. Every other shareholder, member or partner must also guarantee the obligations in proportion to their ownership interest. |
| Non-compete | During the term, the franchisee may not be involved in any business similar to the one conducted under the franchise agreement, anywhere. After termination or expiry, the restriction is one year at the premises of the Store or within 10 miles of it. Under a Development Agreement, the developer may not engage in any other business activity during the term without consent, and the Controlling Person may not have financial or operational involvement in a business outside the Domino's system without written approval. Disclosed
|
| Transfer restrictions | Any transfer of the agreement, the Store, its assets or an ownership interest needs the franchisor's approval, and the buyer must meet its standards for new franchisees. Conditions include full compliance by the seller, the buyer not operating any other pizza business except other Domino's Stores, the buyer signing the then-current franchise agreement and completing training, refurbishment of the Store if requested, payment of the $1,500 transfer fee, and signing the franchisor's Rider to Purchase Agreement. The franchisor holds a right of first refusal and can match a third-party offer. On the franchisee's death or permanent disability, a personal representative has 120 days to submit a transfer proposal. Item 20 records 491 outlet transfers to new owners in 2025. Disclosed
|
| Termination / non-renewal | The franchisor cannot terminate without cause. Curable defaults carry short cure periods: 48 hours for failing to obtain or maintain required insurance, 7 days for breaches of trademark, safety, security or product quality rules, 10 days for unpaid amounts, and 30 days for other defaults; the franchisor can also order operations to stop for health and sanitation reasons with 7 days to cure. Non-curable causes include misrepresentation in the application, failing to open within 6 months, bankruptcy, abandonment, child labour violations, loss of possession of the Store, a felony conviction or conduct the franchisor judges dishonest, intentional under-reporting, unauthorised assignment, breach of restrictive covenants, repeated violations, and failing to reopen or relocate within six months of a closure. The franchisee may terminate only if the franchisor breaches and fails to cure within 30 days. On termination or non-renewal the franchisor may buy the business for an amount based on a percentage of the prior twelve months' Royalty Sales less deductions, and the franchisee must de-identify the Store, return the manual and customer lists and assign telephone numbers. Disclosed
|
| Supplier restrictions (Item 8) | The franchisor sets specifications for equipment, food preparation, vehicles, signage and decor and may designate the only approved source for any item, including itself or an affiliate. Affiliate Domino's Pizza Distribution LLC (DPD) is the sole approved supplier of thin crust and, in practice, of fresh and pan dough balls, and sells it above cost; franchisees may operate an approved commissary using pre-mix from approved suppliers. Affiliate Domino's Pizza LLC (DPL) is the only approved supplier of the Domino's PULSE point-of-sale software and is currently the approved hardware and help desk vendor, and franchisees must sign online ordering, help desk and Microsoft participation agreements. Participation in the gift card program, the SmartRecruiters hiring platform and a designated third-party additional order system is mandatory. Item 8 states that in the fiscal year ended December 28, 2025, DPD's revenue from sales to all franchisees was $2.7 billion, or 55.4% of DPL's total revenues of $4.9 billion, and DPL collected a further $155 million (3% of total revenues) in online ordering, technology, credit card, help desk and other fees from franchisees. Purchases from the franchisor and affiliates are estimated at roughly 25-65% of the cost of establishing a Store and 25-40% of ongoing operating expenses. In 2025 the national advertising fund received an estimated $9.39 million and DPL an estimated $31.26 million in supplier rebates and similar payments tied to franchisee purchases. Disclosed
|
| Dispute resolution | Item 17 lists no arbitration or mediation requirement and no choice-of-forum clause in either franchise agreement or the Development Agreement. The governing law is that of the state where the Store is located (for a Development Agreement, the state where the development area is predominantly located). The Michigan notice reproduced in the disclosure document states that a clause requiring arbitration or litigation outside Michigan is void for Michigan transactions. Disclosed
|
- The Controlling Person must own at least 51% of the franchise entity and may not have financial or operational involvement in any business outside the Domino's system without the franchisor's written approval.
- Applicants for a single store must already have worked at least 12 months as a Domino's store general manager, which narrows the pool of eligible buyers and limits resale to similarly qualified people.
- The franchisor may require technology upgrades during the term; aggregate spending on additions, substitutions or replacements to the Brand Technology is capped at 1.5% of the Store's Royalty Sales over the preceding period of up to ten years.
- The franchisor may require relocation of the Store on renewal, and a Store destroyed or unusable must reopen within six months or termination can follow.
- The maximum the franchisor can require for national advertising plus local and regional advertising is 9% of weekly Royalty Sales, on top of the 5.5% royalty.
- The franchisor has independent access to store data including sales figures, with no contractual limit on that access.
- Item 6 incentive programs that cut royalty or advertising contributions are discretionary and can be modified or ended at any time; a $25,000 reservation fee can apply to development stores that are not opened on schedule.
Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.
Illustrative unit economics
Model estimateModel estimate — not disclosed by the franchisor, not a forecast. Fee lines below come from this brand's verified FDD fee schedule and are computed exactly as disclosed (each line shows its arithmetic). Operating-cost ratios are category placeholders we chose — every one is editable and labeled assumption. Results are illustrative arithmetic, not expected returns. Every figure here belongs to one of five labeled categories — disclosed inputs, model assumptions, unmodeled mandatory fees, user-editable assumptions, and exclusions — defined in our methodology. This brand's Item 19 also discloses some cost or profit data — see the Item 19 section, which takes precedence over any assumption here.
| Line (annual) | Downside | Base | Upside |
|---|---|---|---|
| Revenue (AUV basis) | $1,134,307 | $1,417,884 | $1,630,567 |
| − Cost of goods / supplies assumption | $351,635 | $439,544 | $505,476 |
| − Payroll (excl. owner) assumption | $317,606 | $397,008 | $456,559 |
| − Occupancy assumption | $90,745 | $113,431 | $130,445 |
| − Other operating expenses assumption | $124,774 | $155,967 | $179,362 |
| − Royalty Fee disclosed 5.5% of gross sales = $77,984 |
$62,387 | $77,984 | $89,681 |
| − Advertising Fund disclosed 4% of gross sales = $56,715 |
$45,372 | $56,715 | $65,223 |
| − Local advertising / cooperative layer (conditional) assumption 2% of revenue (your assumption; conditional — the FDD lets the franchisor require UP TO 2%; modeled at the ceiling by default, adjust to the currently specified amount (possibly 0) — Two mutually exclusive branches (Item 6 note 6): where a cooperative exists and 65% of Stores agree a rate, you pay that co-op rate (franchisor may require no less than 2%); where no cooperative exists or no rate is agreed, you spend 'an amount we specify up to and including 2%' on local advertising — a franchisor-discretionary amount with a 2% ceiling, not an automatic 2%. Combined national + local/regional advertising is capped at 9% of weekly Royalty Sales.) = $28,358 |
$22,686 | $28,358 | $32,611 |
| − Annual Software Enhancement Fee disclosed $819 per year |
$819 | $819 | $819 |
| − Annual Service Fee for Application Processing (SmartRecruiters) disclosed $432 per year |
$432 | $432 | $432 |
| − Meraki Licensing disclosed $280 per year |
$280 | $280 | $280 |
| − Insurance premiums assumption $25,000/yr (seeded from the disclosed floor) |
$25,000 | $25,000 | $25,000 |
| = Modeled operating result before the items below (EBITDA-style) | $92,571 | $122,347 | $144,678 |
| − Manager compensation assumption | $60,000 | $60,000 | $60,000 |
| = Modeled result after manager compensation | $32,571 | $62,347 | $84,678 |
| − Illustrative debt service assumption | $55,253 | $55,253 | $55,253 |
| = Illustrative pre-tax cash flow — before taxes, capital expenditures and unmodeled fees | −$22,682 | $7,094 | $29,425 |
| Modeled operating margin | 8.2% | 8.6% | 8.9% |
This modeled result is not owner income. It excludes: income taxes; capital expenditures and equipment-replacement reserves; working-capital needs; ramp-up losses; owner-specific costs; one-time and per-event fees (transfer, renewal, audit); and 4 mandatory fee(s) whose amounts the FDD does not state (listed below — real outflows are higher by these amounts). It is illustrative arithmetic on stated assumptions, not a promise or forecast of what a franchisee earns.
Mandatory fees disclosed but not quantified — not included in the modeled result: the FDD requires these but states no amount (e.g. billed at "then-current" rates). They are never modeled as $0. If you have a quote or estimate, enter an annual amount to include it as your own assumption:
- Third Party Vendor Pulse Fees (Item 6, p. 23) — amount not stated in the FDD (e.g. “then-current fee”)
- Help Desk/Software Support Services (Item 6, p. 23) — Unit price is fixed and disclosed; annual contact volume is not. Sits inside the $7,000 annual PULSE ceiling, so do not add it on top of pulse-annual-technology-cost.
- Technology Transaction Fee (Item 6, p. 24) — Digital order volume is not disclosed; scales with the digital mix of sales, so an assumed order count is required to express it as an annual cost.
- Credit Card Processing Fee (Item 6, p. 24) — Transaction volume and card-payment share are not disclosed.
Overlap control: Advertising Cooperatives is counted within “local-advertising-no-cooperative” — excluded to avoid double counting.
Every figure in this table is a model estimate built on the disclosed fee schedule plus labeled assumptions. Excluded: income taxes, owner draw, working-capital swings, capital expenditures, ramp-up losses in year one, one-time and per-event fees (transfer, renewal, audit), and the undisclosed-amount fees listed above. Read AUV vs. EBITDA vs. owner income before using this.
Sources and provenance
Primary source: 2026 Franchise Disclosure Document — Domino's Pizza Franchising LLC · issued 2026-04-01 · amended 2026-07-29. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.
View all sources, provenance and verification notes
| Document | Obtained from | Dates | Status |
|---|---|---|---|
| 2026 Franchise Disclosure Document — Domino's Pizza Franchising LLC Registry file 640477 · 546 pages Cover and receipt pages read 'Issuance date: April 1, 2026, as amended July 29, 2026'; running footer reads 'July 2026'. Wisconsin registration effective 3/27/2026, status Registered. This is the newest document available in the registry. | Wisconsin Department of Financial Institutions — Franchise Registration Search | Issued 2026-04-01; amended 2026-07-29 Retrieved 2026-08-29 | Newest available at retrieval |
AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-05. AI-assisted extraction independently machine-verified against the cited source document (2026-09-01): two independent AI reading passes plus tie-break re-inspection of every disagreement; 70 of 74 material fields confirmed (65 with the exact page citation re-confirmed), 0 corrected, 0 unresolved, 4 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 28, 2025). See how we use AI and verify data.
Fields flagged as uncertain (4)
- investment.franchise_fee_low / investment.franchise_fee_high — Item 5 and the Item 7 table state a $0 to $10,000 range. Both are recorded at the $10,000 standard maximum because the $0 end reflects discretionary incentive-program waivers rather than a standard price; a buyer's actual fee may be lower.
- item19.headline_auv / item19.headline_median — the disclosed figures are average and median WEEKLY unit sales. No annual figure is disclosed, so none is recorded; multiplying by 52 would imply about $1,417,884 and $1,355,068 respectively, but the FDD does not state how many weeks each store reported.
- item19.population_share_of_system — computed as 6,655 franchised stores in the 2025 Item 19 population divided by 6,974 franchised outlets at fiscal year end (95.4%); the two counts are drawn on different bases (Item 19 excludes territories, Non-Traditional Stores and partial-year stores).
- units.* and item20.* — the FDD publishes separate Item 20 tables for Traditional and Non-Traditional outlets; the figures recorded here are the two tables added together, with the component numbers given in item20.notes.
Extraction notes (8)
- Item 9 was not split into a separate text file for this document; its table appears at the end of item_08.txt and was not needed for any field.
- Item 20 tables cover the U.S. states plus Guam, Puerto Rico and the U.S. Virgin Islands, so us_only is set true; the international system is franchised by a separate affiliate and excluded.
- Item 19 store counts differ from Item 20 counts because Item 19 covers only Traditional Stores in the 50 states that were open for the full twelve months, while Item 20 counts every outlet at period start and end including territories and Non-Traditional Stores.
- All Item 7, Item 20 Table 1, Table 3 and Table 4 totals were recomputed from the underlying rows and foot correctly; the Traditional Item 7 columns sum exactly to $231,450 and $743,500.
- The Item 19 combined 2025 row prints 45% of stores attaining the combined average (3,089 of 6,905, which computes to about 44.7%); the franchised row prints 50% (2,963 of 6,655, about 44.5%). The printed percentages are recorded as disclosed rather than recalculated.
- Domino's fiscal year ends on the Sunday closest to December 31; fiscal 2025 ended December 28, 2025 and Item 20 Table No. 5 projects openings through January 3, 2027.
- No renewal fee is disclosed in Item 6 or Item 17, so fees.renewal_fee is recorded as not disclosed rather than zero.
- Advertising resolution 2026-09-03: Item 6 note 6 re-read. National fund 4% mandatory (exact). Local/co-op layer is CONDITIONAL: co-op-voted rate where a co-op exists (franchisor may require >=2% there), otherwise a franchisor-specified amount UP TO 2%; never an automatic 2%. Combined cap 9%. Calculator models the layer as a labeled editable assumption seeded at the 2% ceiling; the two branch entries no longer stack.
We do not host or redistribute FDD PDFs. Search the registry linked above by franchisor name to obtain the document. Found an error? Report a correction with the field and the primary source.
Compare Domino's Pizza
Other food & qsr franchises: Crumbl, Dunkin', Eggs Up Grill, Firehouse Subs, Jersey Mike's Subs, Jimmy John's. See all →