new business

Awhile ago I posted that my son’s were investigating opening a Domino’s

Received feedback Run Hide Very criptic.

They are in the interview stage and I was wondering if there were more specific explanations.

Thank You

Personally I can’t stand dominos product, I wouldn’t open a dominos… or any of the big three really… even though I work for one of the big three. I would open my own place. But hey… good luck.

My personal chioce is to run a place with my own freedom of operation and creativity. I get to keep all of the profit margin, and not pay the franchise fee.

I am skeptical as to the dollar value of the services provided for the fees paid. Sure, they have a national and regional advertising machine . . . but your brand is their brand . . .period. Very little ability to put own personality and spirit into the operation compared to the independents. We sink and swim on our own efforts and merits, eh?


I worked for Domino’s Pizza for 15 years, from Delivery Driver to Regional Supervisor. I have been to Franchise School, and I almost purchase a group of stores about 6 years ago myself. But I was convinced by several friends who brokeaway from DPI. Several years before I did that the potential for profits was much better if I would take what I learned while working for DPI, and apply it in my own Independent Operation.

At Domino’s, over my 15 years, I would say the average store I was involved with did about $15,000 a week, and profit averaged about 12%.

In the last 6 years I have been doing my own thing applying the knowledge I gained whilst working for DPI, and I have several stores that average about $10,000 a week, and profit averages about 25%.

A franchise system is generally a very strong program.

If your son, isn’t completely confident in his own abilities, Dominos will provide him with a turnkey business that has a 99.97% success rate. If he just does what he has been taught, and he is willing to listen to his franchise consultant he should do fairly well. I have several friends who own anywhere from a single Dominos Pizza Store to upwards of 400 stores, and everyone of them are for the most part happy and excited about the opportunity.

I have alot of respect for DPI, they treated me well, and taught me alot, and I am grateful. But I on the other hand recognized, that I could make alot more working on my own. I own several stores, and I am working on a licensing agreement with several other individuals who want to sell my products, and I imagine I eventually will develop my own franchise system.

Just make sure if he is buying a pre-existing store, that he gets certified Profit and Loss Statements, and Tax Documents. He shouldn’t pay anymore than 3.5 times ANNUAL EBITDA (earnings before income tax, depreciation, and ammortizaiton).

I’ll tell you my philosophy. I look to acquire profitable businesses. Preferably ones that already have a Domino’s and Papa Johns’s very close by. The closer the better. If they are successful already, with limited fear of further competition, then you can forecast kind of a baseline for profits. you have limited risk and some upside. This does take some of the excitement out of ownership, but it eliminates most risk.