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).
