Why it just got a lot harder to buy a Domino's franchise business

Imagine not even getting a look-in, even if you had the cash and skills to buy a Domino’s franchise business in Australia?

Dominos Pizza On Franchise Buyer Store Internal

Having your own Domino’s franchise business has long been the dream of many people looking to get into a business.

How do I know this?

I know it, because for many years, the brand has been in high demand on our own website platform evidenced by the sheer number of enquiries submitted on it.

I can confidently predict that no brand has been as consistently in long-term high demand as it.

But, do they want you?

Well, I can’t answer that question for them, and each person has their own merit in meeting a criteria I’m not entirely privy to.

But, I can tell you, the signs are there that they probably don’t!

A clearly-signalled direction change

For some years now, I’ve observed the company's increasing focus and storytelling trend on multi-site franchise owners. Indeed, they’ve paraded multiple stories about young franchise owners with 10+ stores in their own right!

Build your empire’ is also a common catch-cry or phrase being used in pitching the brand. This pitch angle however, is also used by many franchise brands.

The multi-site path is becoming all the more common, as if you think about it, if executed effectively, it is resource friendly amongst many other things.

Imagine the difference in getting brand messaging, information and actions required, to 100 franchise owners in 100 stores, each with their own ‘take’ on the message.

Contrast that with the same message to 10 franchise owners with 10 stores each in order to get it to a cohort of 100 stores.

Again, amongst other things, it theoretically means less field-staff resource required and broader efficiencies. 

See the attractiveness?

More on the broader multi-site franchise future at another time.

Dominos Pizza On Franchise Buyer Store Externall

Fits with their ‘fortressing strategy’

The company often speaks of their ‘fortressing strategy’ that they unveiled several years ago. More stores, closer together, shorter delivery times. ‘Fortifying’ the entire network against all-comers.

To execute the fortressing strategy, they need franchisees on-board - less individual franchisees overall is easier for that, and more quality franchisees with multiple stores and significant ‘skin-in-the-game’ IS the name of the game.

Domino’s ANZ Chief Executive Nick Knight has been quoted as much some time ago (2019) “We have identified some of those franchisees who have demonstrated they no longer had the passion or capability to execute successfully as we grow…”

It’s the cream of the crop rising to the surface and rewarded with a massive opportunity to essentially ‘own’ large catchments otherwise previously thought out of the question.

Dominos Pizza On Franchise Buyer Store Internal Cutting Pizza

All signs point to new stores from ‘within’

The Domino's Pizza Enterprises Ltd (DPE) company recently released their financial results report. 

In that report, are a few statements that likely go unnoticed to the uninitiated, but tell the story about how hard it is likely to be, to become an approved new Domino’s franchise owner in Australia.

Australia and New Zealand CEO, Nick Knight said; 

“Make no mistake - trading conditions have been challenging and we see this continuing into FY22 - but we have seen a lift in operational performance and a resulting improvement in franchisee profitability, because our refranchising and new stores have come from within.

And, further into the report. “I am very excited about the new generation of Domino’s multi-unit franchisees that have developed within our business and am proud our business can build a platform for their future.”

Now of course, I may be wrong, but I don't think I am. 

As all the signs indicate little real desire to bring in brand new franchise partners with no experience in the Domino’s business.

But, let’s be clear, most other franchise brands could only dream of being in such a position to be able to execute that strategy.