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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.
 
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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?
 
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Frank,

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).
 
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frank:
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
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.
 
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