Domino's Pizza Case Study

1644 Words 7 Pages
Entrepreneurship
Domino’s pizza is a restaurant chain based in United States. It is an international franchise that specializes in pizza delivery, its headquarters are in Michigan, United States. It was founded by Tom Monaghan in 1960. The headquarters are located in Domino Farms Office Park which is also owned by the founder. It has been recognized as the secondlargest pizza chain in the Sates. It’s also recognized as the world’s largest franchise in this sector. It has over 10,000 franchised stores and corporate in over 70 countries worldwide. In 1998, the franchise was sold to Bain Capital and in 2004, the firm went public.
In the year 1960, Tom Monaghan, together with his brother James, bought Dominick’s, which was a small pizza store
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The owners wanted the business to have the same branding although the initial owner of the franchise had denied them the opportunity to use Dominick’s name. The name Domino’s was actually suggested by an employee who had just returned from pizza delivery (Investments & Computech, 2013). Monaghan liked the name and in 1965, he changed the name of the business to Domino’s Pizza Inc.Businesses that operate under the parent company enjoy a successful company image, because the associated company usually have a well-established network of customers. On the other hand, the parent company will in most cases require the entrepreneur to adhere to some procedures, that are not friendly in the delivery of …show more content…
Franchises at this firm are in form of two categories. There are the internal and external categories. Internal franchises work within Domino, while external franchises have in the past worked at Domino. They help in bringing external experience to the company. For the internal, the franchise fee ranges between $0 and $26,000, but this depends on the social status of the parties involved. In the case of external franchisees, the pertinent fee is $25,000. Various financial requirements for approval include licenses and permits. Food delivery firms require food service establishment license, beverages license, general business license as well as a food safety license. To operate in various counties and countries like Domino, more permits are required for each location. Such kind of ventures is faced with many risks. The employees and other stakeholders are prone to many injuries, lawsuits, medical expenses. It is therefore prudent to have an insurance cover with a reliable company. Such service should cover property insurance, liquor liability insurance, and general liability insurance. The average cost to operate a Domino store is $250,000. The highest amount is around $350,000, which depends on whether the building is leased or not. It also depends on whether one uses new or old equipment.
Domino Pizza is basically a franchised business. The business’s owner operated franchise status, as well as the resultant royalty stream,

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