Bottom line
- Total investment $107K – $744K including a $10K franchise fee, 5.5% ongoing royalty.
- Average unit revenue of $1.4M/year (median $1.3M).
- Rated STRONG with a risk score of 29/100. SBA loan default rate of 0.0% across 512 loans (below the industry average).
- System growing at 530% CAGR over 3 years with 7236 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Domino's Pizza unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Domino's Pizza units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$410K
on $2.0M purchase
Total debt
$1.6M
SBA $1.0M + senior + seller note
Overview
About
Franchisees operate pizza delivery and carryout locations using Domino's brand, systems, and menu. Day-to-day operations include managing store staff, order fulfillment (in-house or delivery), inventory/food costs, marketing, and customer service. Franchisees must comply with Domino's technology platform, operational standards, and pay 5.5% weekly royalties on sales.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Established brand with protected territory but facing stagnant growth, thin margins, and mounting litigation that could impact franchisee economics and operational burden.
Score breakdown · what drove the 29 / 100 rating
- 01MINORSlow unit growth of only 2.9% YoY suggests market saturation or franchisee underperformance
- 02HIGHSignificant litigation including securities class action, derivative lawsuits, and joint employer claims creates legal/operational uncertainty
- 03MINORNet income margin of only 1.08% (14.7K on 1.37M revenue) indicates razor-thin profitability after royalties
- 04MINORHigh capital requirement ($107K-$743K) paired with low average net income creates extended ROI timeline
- 05HIGHJoint employer litigation could increase labor compliance costs and corporate liability exposure for franchisees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
75 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Domino's Pizza · FDD (2026) PDF