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What is a franchise?
In technical terms, it is a method of distribution used for selling a product or service by the franchiser. In simple terms, it means the process of selling products of an existing and established brand, acting theirs represents.
Through franchising, one does not have to worry about creating a new brand or building their identity. With just a few simple steps and regular royalty payment to the original brand, one can have a profitable business.
If you wish to start a new business but have only a small investment, the Tea time franchise or Amul franchise are for you. One can begin these franchises with investments ranging from Rs. 4.5 lakhs to Rs.10lakh.
In this particular article, we will be talking about How to Start Domino’s Pizza Franchise in India.
Why Domino’s Pizzas?
Before you start investing in a franchise, you need to know a little bit of its history. The first Domino’s store in Mich was originally called Dominick’s.
It got renamed when the two brothers Tom and James Monaghan bought it in 1960. By 1978, there were over 200 Domino’s pizzas in the USA. By 1983 the 1000th store opened.
In India, the first Domino store opened its gates in New Delhi in the year 1996. It started going online in 2011. Its popularity in India makes it a reliable and profitable brand.
India is the 2nd largest market for Domino’s Pizzas, right behind the USA. As of the statistics taken in December 2019, Domino’s pizzas have 1,325 stores in India within 282 cities, and it is still expanding day by day.
Even amid Covid-19, Domino’s pizzas have turned over profits with their efficient delivery services and great-tasting pizzas. Domino’s Pizzas in India works under the motto of Dil, Dosti, Domino’s.
A guide to starting Domino’s franchise
Secure your retail store/outlet
There are four business outlet modules that Domino’s pizzas use in India as franchisors, and they are:
- Carry-out outlets
Stores in a shopping center, shopping strips, or areas suitable for parking and deliveries. These are the traditional forms of retail stores that we find. These stores sell their pizzas only through deliveries and carry-out services.
- Sit-down outlets
They sell pizzas and other authorized products and services in office buildings, metro stations, shopping malls, airports, zoos, etc. These locations are considered non-traditional as they have a sit-down service available. Domino’s considers carry-out service as a traditional method.
- Customized menu stores
Unlike the first traditional retail shops in this module, Domino’s includes customization of the menus to fit the taste of the locality. They are only available in selected markets and are not as profitable as Traditional outlets.
These outlets are temporary and have an option to grow. When they cover bigger areas, they can change from transitional stores to traditional stores.
- License-based outlets
Under this, the franchisor (Domino’s pizzas) issues licenses to different facilities and entertainment centers like stadiums and theatres.
It means that a person or group with the license is authorized to sell approved products of Domino’s pizzas during an event. They can only serve in a carry-out service.
Investments and loans
At the present date, Domino’s Pizzas own 450 self-stores and 12000 franchise stores across the globe. Depending on the type of store, the investments can range from 65lakhs to 3.5 crores.
It is a huge amount for any small-scale entrepreneur. If you are determined to open a Domino’s store, you might want to apply for MSME (Micro, Small and Medium enterprises)loans or business loans from banks.
One can also apply for business loans in a Non-banking financial company like Ziploan for up to Rs 7.5lakhs. If you feel like a smaller franchise would be better for you, you can apply for an Amul franchise or DTDC Franchise.
If you are still confident about being a Domino’s licensed franchiser, let us move on to the application process.
The selection of a franchiser is a strict and selective process because they will be acting as the representatives of Domino’s Pizzas to the people. Many people popularly call domino franchisers ‘Dominoids’.
Not only will the company look at the condition of your outlet and the financial capital you hold, but also your skills. Domino’s pizzas require people with leadership skills, entrepreneurial skills, people skills, communication skills, administration, and desire for success rather than the number of degrees you hold.
After applying for the position, you will have to wait till you are shortlisted. If you are shortlisted, you will receive an application document pack and will have to start getting ready for a phone interview. Be honest and confident about yourself and your goals.
The next step of the process if your interview goes well is the franchise development meeting. For this, you will be meeting a franchise development manager who will set up the one-on-one meeting.
For this meeting, you will have to go into the depths of your plans for the franchise and how you will be running the store if you get the approval.
If you receive the thumbs up, the company will start providing you with store-specific financial data and the rules and regulations that have to be followed.
Soon after this, your orientation program will begin. You will be given a thorough tour of the existing franchises, their working methods, success stories, reasons for failures, and taught important details about franchising.
Through this, you will be able to learn and create plans for the future. You will also be able to network among fellow franchisers during the orientation.
The final step will be signing the agreement between you, the franchise, and Domino’s pizza, the franchisor, as you enter this deal. You will have to agree to the terms and conditions laid out in the agreement by the franchisor.
With this now, you will become an authorized franchisee for Domino’s pizzas in India. You will also enter a detailed training program before starting your new store. To start your new business, if you seek some loan facilities, contact us at 011 – 4310 – 9577.
Frequently Asked Questions
Domino’s initial franchise fee is $10,000 for building a new store or franchising a closed store.
Depending on the location of the store and delivery availability it can be expected to have 1-3 Lakhs profit margin per month.
Thomas Stephen Monaghan (born March 25, 1937) is an American entrepreneur who founded Domino’s Pizza in 1960.
The cost of the Domino’s franchise depends on the format of the location you choose to become an owner of. A traditional Domino’s Pizza store would cost an investment of around INR 30,00000 and for a non-traditional Domino’s Pizza store the investment amount would be around INR 50,00000 to own a franchise.