How Much Domino's Pizza Franchise Owners Really Make Per Year
If owning a piece of the Domino's Pizza pie sounds like your dream investment, it just might be. While owning a Domino's franchise is certainly a natural, and easier step as a current employee, buying into one of the largest pizza companies in the world is an investment to consider (via Small Business). One former entry-level deliveryman even told his story to CNN about how he eventually became a store owner of 18 Domino's restaurants, making more than six-figures per year.
So, whether you are a high schooler or college student looking to make extra cash as an entry-level Domino's employee — with an eye for long-term investment options, or an external franchise candidate with enough money to meet the chain's rather extensive franchise requirements, taking time to consider investing in the pizza company could easily pay off with time. From the reduced risk of investing in an existing Domino's location, to the bonus of corporate marketing, Domino's offers more than just a good payday for franchise owners.
The price to invest in a franchise
Buying a Domino's franchise requires at least $75,000 in liquid capital, not to mention the $25,000 franchise fee you'll need, according to Franchise Help. Potential franchise owners also need to have a total net worth of at least $250,000. All in all, the entire investment could cost potential buyers anywhere from about $120,000, to more than $460,000. Clearly, Domino's wants to take on less risk training outside franchisees from scratch, given the high threshold of entry.
With a big investment to buy a franchise, however, comes big support. The Domino's name alone helps sell pizzas and breadsticks. And the company does a lot to help with local, direct-mail marketing, in addition to the national marketing the chain already provides (via Small Business). Domino's further offers tools and training to its franchisees in order to help them succeed. Then, the company offers franchise owners a renewable, 10-year contract. So this is definitely a longterm investment.
Domino's receive a 5.5 percent royalty fee from franchisees in exchange for this significant support, which impacts how much a franchisee stands to make, well, making and delivering piping-hot pizzas. Are you getting hungry, too? The good news is that pepperoni and cheese can add up to big bucks for hardworking Domino's restaurant owners, especially if they operate more than one location.
How much Domino's franchise owners make
While how much Domino's franchise owners make definitely varies from location to location, Glassdoor reports an annual salary range between $107,000 to $116,000 can be expected. In addition to a very comfortable salary, franchise owners get great benefits, like a 401k and insurance. Owners also receive 50 percent off of pizzas for family and friends. Isn't that enough right there to sign up to own a Domino's restaurant? Um, plus wings, breadsticks, pasta dishes, and sandwiches; yes, the Domino's menu has certainly grown a lot from its inception.
Meanwhile, according to Franchise Help, more than half of franchise owners own more than one store, which means a much larger salary. Based on the average take-home for a franchise owner, it is quite possible to open additional stores after saving the equivalent of one year's salary. And, as owners pay down any loans, profits can really take off resulting in as much as seven-figure income (via Small Business).
What franchise owners get
As previously stated, Domino's primarily franchises internally, so many entry-level employees at the chain eventually move up. In fact, more than 90 percent of franchise owners come from within the company, having managed or supervised stores before owning their own. Today, there are more than 17,000 franchised and corporate-owned stores in more than 90 international markets. That means there's no shortage of locations for employees to learn and train in, and to perhaps become a franchise owner of one day (via Domino's).
It makes sense why Domino's prefers internal candidates as franchise owners. Internal employees are people who already understand the company, how things are done, and the systems and tools they use, like the ordering software and the delivery tracking tool. Internal candidates also have a direct "in" to attend the Domino's Franchise Management School, which teaches employees everything they need to know about owning and operating their own business.
So, go ahead — start delivering pizzas today. Dream big! If you are a hard worker like the Domino's deliveryman-turned-multiple-franchise owner who lived the American dream with Domino's, then you too can own a franchise (or many!) one day. And if you get the munchies, there will always be a pizza with your name on it waiting to satisfy your hunger for success; and your real hunger, too!