The fast food industry in India has been completely transformed in the last two decades with the growth of fast-food joints. Currently, Domino’s is one of the most popular pizzerias in India that made pizza delivery a phenomenon in the Indian market. Therefore, for those interested in entering the business as a franchisor in the QSR space, getting an understanding of the Domino’s franchises in India becomes very essential before one begins the journey.
The idea of franchising presents an opportunity for would-be business persons to own a business venture that will already be equipped with brand recognition, advertising and revenues generating blueprint. However, as detailed above, owning a franchise of Dominos comes with the Domino’s Franchise Cost in India, but the profitability and future growth of the business’s investment in a this franchise are worthwhile. This blog will offer a complete breakdown the Franchise Costs in India and delve deep into the cost of investment that is needed, the functional methodology, and the possible ROI.
About Domino’s
| Category | Details |
| Brand Name | Domino’s Pizza |
| Founded | 1960 (United States) |
| Headquarters | Ann Arbor, Michigan, United States |
| Parent Company | Domino’s Pizza, Inc. (Publicly traded) |
| Presence in India | Since 1996 |
| Number of Outlets | Over 1,300 stores across India (as of 2023) |
| Core Offerings | Pizzas, Pasta, Chicken, Sides, Beverages, Desserts |
| Franchise Model | FOFO (Franchise Owned, Franchise Operated), Delivery-only stores, Express outlets |
| Target Audience | Fast-food lovers, families, young professionals, and anyone looking for convenient pizza delivery |
| Website | www.dominos.co.in |
| Global Reach | Present in over 85 countries with more than 17,000 stores worldwide |
Understanding the Domino’s Franchise Opportunity
This brand Pizza started its business in India back in 1996 and has now grown to be a leading pizza company in India. With exponentially increasing customer traffic and a sturdy market position, it is still growing in size with the chance to buy into the restaurant franchise. Chen and Chen also add that Shiny functions have successfully established the influence of the brand based on its quality, speed of service, and customer satisfaction. So when you become a franchisee, you will be buying into one of the most recognizable brands in the restaurant industry.
Before we discuss Franchise Costs in India, let’s just admit that the cost is on the higher side, however going through this not only gives the franchiser a readymade operational model that is already successfully working but there is always support and the powers of a globally recognised brand with you. Marketing campaigns and the ability for customers to order online are other facilities that franchisees gain fav which boosts their prospects.
Reasons to Choose a Domino’s Franchise in India
- Brand Recognition: Domino’s is a global brand with significant presence in India.
- Successful Business Model: Excellent success ratio with a tried and proven franchise model.
- Extensive Support: Continuous training, marketing support, and operational assistance.
- High Market Potential: Huge demand for pizza and QSRs in urban and suburban markets.
- Flexible Franchise Models: Various models (FOFO, Delivery-only, Express) to cater to different investment levels.
- Marketing Support: National advertisement campaigns that boost brand awareness and customer traffic.
- Technology: Advanced ordering systems, mobile applications, and online platforms.
- Consistent Sales Growth: Steady sales growth, more so with the rise of online order and delivery services.
- Strong Supply Chain: Reliable supply of high-quality ingredients and operational tools.
- High ROI Potential: Continuous returns with a focus on customer satisfaction and operational excellence.
Breaking Down the Domino’s Franchise Cost in India
Before looking at the details, regarding the Franchise Cost, it is essential to note that one can about various aspects affecting the total investment. This means that the more the type of outlet, the location, the size of the store or operational model, the higher the amount of investment required.
| Cost Category | Details | Cost Range |
| Franchise Fee | Fee for using the Domino’s brand, training, support, and operational guidance. | ₹10 lakh to ₹20 lakh |
| Setup and Store Design Costs | Costs for building, remodeling, and equipping the store (depends on the outlet type). | Full-Service Outlet: ₹30 lakh to ₹60 lakhDelivery-Only: ₹50 lakh to ₹70 lakhExpress Outlet: ₹40 lakh to ₹60 lakhCloud Kitchen: ₹30 lakh to ₹50 lakh |
| Working Capital | Funds for daily operations (stocks, wages, bills, etc.). | ₹10 lakh to ₹15 lakh |
| Royalty Fees | Ongoing fee for using the brand, paid monthly as a percentage of sales. | 1.6% of monthly sales |
| Marketing Fund Contribution | Contribution towards national and regional marketing campaigns to promote the brand. | 2% to 3% of monthly sales |
Franchise Fee
The franchise fee refers to a fee paid by you to Domino for permitting you to use the Domino brand, its procedures and guidelines for the running of the kitchen. This fee varies from ₹10 lakh to ₹20 lakh based upon the kind of outlet and its location. This fee is for the concept of the brand, and for the training, assistance and direction it offers.
In some cases this fee is high however it offers the franchisees an already established brand, well recognized by consumers. This also involves continued help with the management of store operations, staff development and promotion assistance. The Domino’s Franchise Cost in India aims at making sure that all the franchisees are outfitted fully to operate the store based on the best standards set by the company.
Setup and Store Design Costs
Franchising requires more than you get a basic check and pay the franchise fee to get started. You will have to spend money on building the store, remodelling it and purchasing equipment for the kitchen. The detailing of this Franchise Costs in India regarding the set-up cost differs based on the type and the location of the store.
For example:
- The FOFO model, which consists of full-service outlets that offer dine-in and delivery services, demands higher capital investment. The total comparably measured cost of this Franchise in India can lie between ₹30 lakh to ₹60 lakh for an outlet full service.
- Online-only stores, which are stores that operate solely to deliver products, are generally smaller and therefore take less capital. Domino’s Franchise Cost in India Delivery-Only Outlet Range between ₹ 50 lakh to ₹ 70 lakh.
- Express outlets, which are smaller stores focused on delivery and takeaway, can cost between ₹40 lakh and ₹60 lakh for setup.
- This reason establishes cloud kitchens, which operate solely for delivery services, as the most economical solution. They estimate that it takes between ₹30 lakh and ₹50 lakh to establish an effective cloud kitchen.
Such costs comprise the cost of construction, shelving, refrigeration and other equipment in the kitchen and interior decoration, brand name and other essentials to run the store. The building standards’ guide is well outlined and governs the store construction and it has been highly standardized and complied with by the brand, also during the design and setup phase of the stores, it heavily coordinates with the franchisees.
Working Capital
The turnover working capital focuses on daily operations and includes items like stocks, wages, and other expenses like electricity power bills, and rent among others. Working capital at Domino’s Franchise Cost in India can cost anywhere between ₹10 lakh to ₹15 lakh depending on the size of the store and its daily operations.
Working capital is a vital aspect of a business since it creates a buffer between cash inflow and outflow that is important more so in the first few months that a store may not be making profits. This fund enables you make sure that you can able to run your store without experiencing cash deficiencies.
Royalty Fees
Domino’s receives cash from franchisees who, in return, are allowed to use the brand and its methods. The royalty fee is calculated at one point six per cent of monthly sales. However, it is worthy of note that the royalty fee which is an ongoing expense is used for the funding of the brands’ advertisements, marketing promotion and enhancement of the products’ promotions and operational facilities.
The royalty fee also makes a significant way of making sure that quality service is achieved throughout the various franchises of Domino’s. One advantage of purchasing a franchise from this popular brand is that you get to tap into national advertising, the Internet, and other promotional activities nascent from the system that create traffic to your store.
Marketing Fund Contribution
Franchisees are also expected to pay an amount towards the marketing fund in addition to, a royalty fee. This fee usually costs between 2% and 3% of monthly sales. The marketing fund assists Domino’in supportingrt national and regional advertising to promote the brand and build a customer base.
While Domino’s Franchise Costs in India can seem high, the marketing fund is essential for driving brand awareness and customer engagement. National campaigns help boost sales across all outlets, making it easier for franchisees to generate revenue.
Types of Domino’s Franchise Models in India
When considering this Franchise Cost in India, it’s important to understand the different types of franchise models available. Each model comes with its investment requirements, operational challenges, and revenue potential.
| Franchise Model | Description | Investment Range | Operational Focus | Revenue Potential |
| Full-Service Outlets (FOFO Model) | Larger outlets with dine-in and delivery services, equipped with a full kitchen. Located in high-traffic areas. | ₹60 lakh to ₹1 crore | Dine-in, Counter sales, and Delivery | Consistent returns with higher sales but higher operational costs. |
| Delivery-Only Stores | Small stores that only handle delivery and online orders, suitable for congested areas. | ₹50 lakh to ₹70 lakh | Delivery & Online Orders | Lower fixed costs but focuses on the convenience of delivery. |
| Express Outlets | Small outlets designed for takeaway and delivery, with no seating areas. Ideal for high-traffic locations like malls or colleges. | ₹40 lakh to ₹60 lakh | Takeaway & Delivery | Lower investment and quick returns, suited for high-traffic areas. |
Full-Service Outlets (FOFO Model)
Domino’s owned stores are classified into full-service outlets where people can eat in and order through delivery services. These stores are bigger, possess a kitchen with all the necessary equipment, and are situated in zones with the greatest traffic intensity. At present, Domino’s International Franchise Fee For a full service Here, the cost of opening Domino’s franchise outlet in India generally varies from ₹60 lakh to ₹1 crore.
Dine-in restaurants tend to make more sales as they attend to both Counter sales and Orders from delivery services. However, they also need a big investment and higher cost of operation, which hampers the turnaround time but the returns are consistent in the long run.
Delivery-Only Stores
There are several other types of stores which include delivery stores which are small stores that only deal with delivery and online orders. This model has been adopted particularly in areas that are congested with raised demand for pizzas. The Domino’s Franchise Cost in India for delivery-only stores is lesser that is between 50 lakh to 70 lakh only.
For situations where the cost of space is high, or where few consumers require the services of the sit-in area, delivery-only stores are appropriate. Though these stores have lower fixed costs, they tap into the value that exists in the brand, delivery service, and consumers.
Express Outlets
Express shops are small format shops primarily selling takeaway and delivery solutions. Such outlets normally do not contain seating and eating areas for customers and are intended to be used primarily for fast food clients. The Franchise Cost for an express outlet costs between ₹ 40 Lakh to 60 Lakh.
The express outlet model is more applicable where there is a large number of people in traffic such as in malls, workplaces and colleges. Express outlets are also easily available for Franchisees who want to start their pizza business with a small amount of investment.
Cloud Kitchens
Cloud kitchens are delivery-only kitchens that do not have any physical dining space. These kitchens cater exclusively to online orders and delivery platforms, significantly reducing operational costs like rent, utilities, and maintenance. The Domino’s Franchise Cost in India for a cloud kitchen is typically between ₹30 lakh and ₹50 lakh.
Cloud kitchens are an ideal investment for areas with high delivery demand but limited real estate options. This model is growing in popularity due to its cost-effectiveness and scalability.
Domino’s Pizza Franchise Requirements
Store Size:
Minimum store size varies according to outlet type:
- Dine-in Restaurant: 800 to 2,000 sq. ft.
- Delivery and Carryout Store: 400 to 1,000 sq. ft.
- Express Outlet: 200 to 400 sq. ft. (most suitable for high volume locations)
- Seating Capacity:
- Most of the locations are used for seating about 20 to 30 customers as Domino is more of delivery and carryout chain.
Kitchen Equipment:
Ovens, dough mixers, refrigerators, and other equipment provided by the franchisor should be on hand for food preparation.
Storage Space:
Ingredients and supplies will need sufficient storage space for walk-in refrigerators and freezers and shelving units.
Parking:
Good parking space for customers for dine-in services would help achieve convenient and enjoyable dining for customers.
Documents and Licenses required
| Document/License | Description |
| Franchise Application Form | A completed form provided by the brand, detailing your personal and business information. |
| Financial Documents | Proof of financial stability, such as bank statements, income tax returns, and balance sheets. |
| Property Documents | Ownership or lease agreement of the property where the franchise will be located. |
| Trade License | Required from the local municipal authority to operate a business legally in your area. |
| Food License (FSSAI) | A license from the Food Safety and Standards Authority of India (FSSAI) for operating a food business. |
| GST Registration | Goods and Services Tax registration for legal tax compliance and billing purposes. |
| Shops and Establishment Act License | Required under the state’s Shops and Establishment Act to operate your business legally. |
| Health Trade License | A license from the local health department, particularly for food-related businesses. |
| Fire Safety Certificate | A fire safety inspection certificate from the local fire department, ensuring the safety of the premises. |
| NOC from Landlord | A No Objection Certificate (NOC) from your landlord if you’re leasing the property. |
Profitability and ROI: The Financial Upside of Domino’s Franchise
While Domino’s Franchise Cost in India is relatively high compared to some other franchise models, the potential for profitability is also significant. A well-located store can generate annual sales between ₹1 crore and ₹3 crore. Franchisees typically earn a profit margin of around 10% to 15%, which translates to annual profits of ₹10 lakh to ₹45 lakh.
The break-even period for a this brand franchise is generally between 2 to 3 years, depending on factors such as location, competition, and operational efficiency. After this period, franchisees can expect to see steady returns on their investment.
The Franchise Cost is high, but with the right location, solid management, and effective marketing, franchisees can achieve long-term success. The brand’s strong presence in India, combined with its effective operational model, makes it one of the most attractive franchise opportunities in the food industry.
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Conclusion
Investing in a this franchise in India is a significant commitment, but it also offers an exciting and profitable opportunity in the fast-growing food industry. The Domino’s Franchise Cost in India can be substantial, but the support, training, brand recognition, and proven operational model make it a worthwhile investment for many entrepreneurs. With the right location, hard work, and effective management, this franchise can be a rewarding business venture.
This guide has covered all the essential aspects of the Franchise Cost, helping you make an informed decision about your potential investment. Whether you opt for a full-service outlet, an express store, or a delivery-only outlet, Domino’s Franchise is an investment that promises long-term returns in a booming market.
FAQs
What is Domino’s Franchise Cost in India?
The total investment required to open this business in India typically ranges from ₹50 lakh to ₹1 crore, depending on the type of store and its location. The investment covers the franchise fee, setup costs, and working capital.
What are the royalty fees for opening a Domino’s franchise?
The royalty fee for a this franchise is 6% of monthly sales. This fee supports the use of the brand, operational systems, and marketing campaigns, ensuring continued growth and brand recognition.
What is the break-even period for a Domino’s franchise?
The break-even period for a this franchise is typically between 2 to 3 years. Factors like location, competition, and operational efficiency affect this timeline, but after breaking even, the business generally generates steady profits.
Is prior experience in the food industry required to open a Domino’s franchise?
No, prior experience is not required. This brand provides comprehensive training covering store operations, customer service, and inventory management. Ongoing support helps franchisees manage and grow their business.
Can I own multiple franchises in India?
Yes, Domino’s allows multi-unit ownership. Successful franchisees can expand by opening additional outlets in different locations. However, owning multiple units requires significant financial investment and strong management skills.