Domino's Pizza franchise cost: investment, fees and the SBA default rate
Items 5, 6 and 7 · Domino's Pizza FDD 2026 · Updated 2026
A Domino's Pizza franchise costs $231,450–$743,500 in total initial investment, according to Item 7 of the brand's FDD (2026); the ongoing royalty is 5.5% of sales, plus 4% of sales to the advertising fund (Item 6). Beyond the royalty and Advertising Fund, Item 6 lists Advertising Cooperative contributions of 1-4% of sales, which franchisees may be required to pay. On the lending side, Domino's Pizza franchisees defaulted on 1.4% of SBA 7(a) loans approved FY2010–FY2019 (3 of 216), and the average SBA loan to a Domino's Pizza franchisee in that cohort was $387,630.
| Total initial investment (Item 7) | $231,450–$743,500 |
|---|---|
| Royalty (Item 6) | 5.5% of sales |
| Advertising fund (Item 6) | 4% of sales |
| Fee notes (Item 6) | Beyond the royalty and Advertising Fund, Item 6 lists Advertising Cooperative contributions of 1-4% of sales, which franchisees may be required to pay. |
| SBA 7(a) default rate, FY2010–FY2019 | 1.4% |
| Average SBA loan, 2010s cohort | $387,630 |
| Average SBA loan since 2020 | $812,783 |
| Industry | Limited-Service Restaurants |
How much does it cost to open a Domino's Pizza franchise?
Item 7 of the FDD estimates the total initial investment at $231,450–$743,500. It is the franchisor's own estimate of what a new franchisee spends to open one unit, typically the franchise fee, equipment, premises or vehicle costs, opening inventory and an initial working-capital reserve. The low and high ends usually reflect different unit sizes, leasing versus buying, and local costs. Covers a Domino's Pizza Traditional (delivery and carry-out) Store; Item 7 gives a separate estimate for a Non-Traditional Store.
What does the SBA data add?
The federal loan record adds what the FDD cannot: Domino's Pizza franchisees defaulted on 1.4% of SBA 7(a) loans approved FY2010–FY2019 (3 of 216 resolved loans), against the Limited-Service Restaurants industry average of 10.3%, according to U.S. Small Business Administration data with statuses as of June 30, 2026. Since 2020 they have taken 237 new SBA loans, of which 2 have already charged off.
Set the investment range against the loans: an average SBA loan of $387,630 against the $231,450–$743,500 investment range says roughly how much of a typical Domino's Pizza opening was debt-financed in the 2010s. The brand page has the year-by-year record and the industry comparison.
What would Domino's Pizza's royalty and ad fund cost at your sales level?
From Item 6: royalty 5.5% of sales, advertising fund 4%. Royalty and ad fund only · illustration. Other Item 6 fees, fixed or percentage, are not included.
| Annual sales | Royalty | Ad fund | Royalty + ad fund |
|---|---|---|---|
| $250,000 | $13,750 | $10,000 | $23,750 |
| $500,000 | $27,500 | $20,000 | $47,500 |
| $1,000,000 | $55,000 | $40,000 | $95,000 |
| $2,000,000 | $110,000 | $80,000 | $190,000 |
Most SBA default figures published online use loans approved since 2020 — loans that have had six years or less to fail — so those rates are floors, not outcomes. Every rate on this site is computed from the matured FY2010–FY2019 cohort: loans that have been paid in full or charged off, so the result is settled. Loans approved since 2020 are shown as counts so early charge-offs are visible without being mistaken for a rate.
Frequently asked
How much does a Domino's Pizza franchise cost?
A Domino's Pizza franchise costs $231,450–$743,500 in total initial investment, according to Item 7 of the brand's FDD (2026); the ongoing royalty is 5.5% of sales, plus 4% of sales to the advertising fund (Item 6). Beyond the royalty and Advertising Fund, Item 6 lists Advertising Cooperative contributions of 1-4% of sales, which franchisees may be required to pay. On the lending side, Domino's Pizza franchisees defaulted on 1.4% of SBA 7(a) loans approved FY2010–FY2019 (3 of 216), and the average SBA loan to a Domino's Pizza franchisee in that cohort was $387,630.
What is the Domino's Pizza franchise fee?
Domino's Pizza's FDD Item 5 fee is not in this dataset; the total initial investment (Item 7) is $231,450–$743,500.
What royalty does Domino's Pizza charge?
5.5% of sales, plus 4% of sales to the advertising fund, per Item 6. Beyond the royalty and Advertising Fund, Item 6 lists Advertising Cooperative contributions of 1-4% of sales, which franchisees may be required to pay.
What is Domino's Pizza's SBA loan default rate?
1.4%: 3 of 216 SBA 7(a) loans approved FY2010–FY2019 to Domino's Pizza franchisees were charged off.
Source
Sources: Domino's Pizza Franchise Disclosure Document (2026, Wisconsin DFI filing 640477); U.S. Small Business Administration, 7(a) loan program charge-off data, FY2010–FY2019. Franchise data is matched on the SBA's franchise code / brand name. "Failure rate" here means the share of approved loans (resolved: paid in full or charged off) that were charged off; it is not a measure of unit closures. Last updated September 30, 2026.
Cite this page
Franchise Failure Rates (2026). Domino's Pizza franchise cost, Items 5–7, and SBA 7(a) default rate. From the Domino's Pizza FDD and U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/dominos-pizza/cost/ · Data & methodology