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The Domino effect

Sarah Stowe

Number of franchisees: there are 151 Domino’s franchisees in Australia operating 443 Domino’s stores in both metropolitan and regional areas. Our main focus is Victoria and South Australia where we have a lot of room to grow.

Franchise cost: an initial franchise fee is $50,000 plus GST.

Set-up costs/vehicle loans: set up costs vary depending on individual circumstances including landlords’ site contributions, size of the premises, level and type of equipment, and can range from $250,000 to $350,000 plus GST.

Working capital required: $30,000 working capital is required.

Marketing and royalty fees: ongoing royalty fee is seven percent of gross sales, paid monthly. A maximum of six percent of sales is paid as an advertising fee towards national advertising.

This includes campaigns on tv, point of sale material, local store marketing, website, online ordering estore, new product development, public relations support, directory listings, search engine marketing and optimisation, social media management, outdoor and radio advertising.

Income guarantees: none, but we make money out of selling pizzas, not franchises. Our whole focus is to help franchisees sell more pizza, make more money and have more fun.

Average franchise turnover Jan 2009 to Jan 2010: N/A

Term: 10 years with one option to renew for a further 10 years

Opportunity for multi-units: yes. There are currently 57 franchisees in the Domino’s group who operate two or more stores. Our largest multi-unit franchisee runs 14 stores.