Starting a Domino’s Pizza franchise in the UK can be an exciting and profitable opportunity for entrepreneurs looking to tap into the fast-food and pizza market. However, it’s important to understand the financial commitment and the steps required to get started.
Investment Range:
The total investment required to start a Domino’s franchise in the UK can vary depending on the location and the size of the outlet. Here’s a breakdown of the costs involved:
- Franchise Fee: £25,000 to £30,000
- Total Initial Investment: £200,000 to £500,000 (varies depending on location and size of the store)
- Working Capital: £40,000 to £50,000
- Store Setup and Equipment: £150,000 to £450,000
Breakdown of Costs:
- Franchise Fee: The franchise fee is the upfront cost paid to Domino’s to obtain the right to operate the brand in a specific area.
- Lease and Property Costs: Renting or purchasing a suitable location is a significant part of the investment.
- Store Setup: Costs for fitting the store with the required equipment such as ovens, delivery vehicles, and furniture.
- Marketing and Advertising: Franchisees are also required to contribute towards the national and local advertising fund, typically around 3% of revenue.
Additional Considerations:
- Ongoing Royalties: Franchisees are required to pay ongoing royalties, which are typically a percentage of sales (around 6%).
- Training and Support: Domino’s offers comprehensive training programs and continuous support, which can be a key factor in the success of the franchise.
Bullet Points for Quick Reference:
- Franchise Fee: £25,000 to £30,000
- Total Investment: £200,000 to £500,000
- Working Capital: £40,000 to £50,000
- Ongoing Royalties: Approximately 6% of sales
- Marketing Fees: Around 3% of sales
- Training: Provided by Domino’s, covering all aspects of running the franchise
Disclaimer:
The investment figures mentioned above are estimates and can vary depending on the location, store size, and other factors. It’s important to conduct thorough research and financial planning before committing to a Domino’s franchise. All costs should be confirmed with Domino’s during the application and franchise agreement process.