1. Click on the link in the summary. How much does it cost to buy into the Domino's franchise concept in Canada? What are the royalty and ad fee percentages?
2. Why do people want to buy into the franchise concept in the first place? Why not just start their own businesses?
3. Do you think there would be disadvantages to owning a franchise? What might some of them be?
4. How is Domino's different from the stereotypical franchisor?
With approximately 9400 franchises worldwide, Domino's is known as a global market player, and they want to become even bigger! Domino's offers franchise opportunities to people who want to become an owner of a business but not wanting to deal with all the challenging startup issues which new business owners normally endure. "In order to become an owner you have to work in the system for a minimum of one year and be recommended by either another franchisee or someone in executive," says Scott Hinshaw
(Executive VP of Franchise Operations & Development). The cost to join is very reasonable as well; currently in the USA it cost only $5000.00 to become a franchisee (that doesn't include capital assets which would run you around an additional $200,000.00). The costs are higher in Canada, but still fairly reasonable. Click on the link (express.dominos.ca/pages/legalfranchise-ca.jsp) for details.
Franchisees pay both a royalty and an advertising fee. These fees are ongoing; as long as you own the franchise you will have to pay these fees.
Domino's isn't autocratic (like a lot of franchisors); it doesn't just give orders to their franchisees. Domino's wants the franchisee to feel like a part of the organization and makes sure they are involved in the strategic planning process for the entire organization. When the franchisor came up with new pizzas, they first went to the franchisees to ensure they were on board with the changes prior to rolling them out to consumers, instead of forcing franchisees to go with the new types of pizzas. The franchisor collected feedback from the franchisees via road shows and conference calls and gained consensus from the franchisees before bringing the new products to market, working collaboratively for the betterment of all concerned parties and the long term success of Domino's.