Starting up a business can come with a lot of rewards. For example, there is the prospect of becoming rich, which is perfectly possible provided that the start-up is a success. Likewise, there is the chance for interested individuals to determine their own destinies, which can be very attractive for those who are feeling stifled in their current positions. However, starting up a business comes with some serious risks, so much so that would-be business owners need to be prepared for the possibility of failure.
Of course, there are ways that interested individuals can increase the chances of their success and decrease the chances of their failure. Common examples include but are not limited to building experience at running businesses, picking up the various skills needed to run a business, and saving up for a bigger war-chest before starting up a business. However, there is one more option that can have a huge positive effect in this regard in exchange for a share of the sales, which would be becoming a franchisee.
In short, a franchisor such as Domino's Pizza can provide interested individuals with the right to use their brand as well as their particular revenue-earning methods. Furthermore, a franchisor can provide its franchisees with a wide range of supports when it comes to starting up their businesses, thus making the initial start-up stage much smoother than otherwise possible. However, while this sounds tempting, interested individuals need to know the costs before they can make a fully-informed decision about whether becoming a franchisee is suitable for them or not.
What Are the Costs of Becoming a Domino's Pizza Franchisee?
Generally speaking, the costs of becoming a Domino's Pizza franchisee are high but nowhere near as high as becoming a franchisee of one of the more in-demand franchises that can be found out there. First, interested individuals should know that they will need to have at least $250,000 when it comes to their net worth. Out of that figure, at least $75,000 should be either cash or some other kind of liquid capital, which will be needed for the start-up process. Second, interested individuals should know that the franchise fee for Domino's Pizza $25,000. Of course, this is far from being the sole cost associated with becoming a Domino's Pizza franchisee, as shown by the fact that the royalties are set at 5.5 percent of gross sales. Third, these are the costs of becoming a Domino's Pizza franchisee, which make up a part but not the whole of the costs of starting up a Domino's Pizza franchise.
There are estimates that the total cost of starting up a Domino's Pizza franchise will range from around $120,000 to around $460,000. Some of this cost will be spent on the real estate property needed to house the revenue-earning operations, while the rest will be spent on tools, machines, supplies, personnel, and a wide range of other expenses. Franchisees should be able to count on their franchisors for a fair amount of information about what they will need as well as what those things will cost. However, they need to be prepared to conduct a fair amount of research as well because some of those things won't cost the same for franchisee to franchisee. In particular, the cost of the real estate property is critical, both because it is one of the biggest costs and because it can see so much variation from place to place.
In the end, the would-be business owner is the single most important element when it comes to the success or failure of a start-up. Becoming a Domino's Pizza franchisee will provide them with a proven method for running a successful business. However, it is up to them to make the best use of that method. The more money that they have saved up to turn their business ambitions into reality, the better their chance of success because of their increased ability to recover from potential problems. Likewise, the more effort that they put in, the better-prepared that they will be for those potential problems in the first place. Simply put, knowing the costs of becoming a Domino's Pizza franchisee is critical, but it is no more than a single step on interested individuals' path to business success.
You can also read:
Written by Garrett Parker
Read more posts by Garrett Parker